From the chief economic commentator for the Financial Times, a brilliant tour d’horizon of the new global economy and its trajectory
There have been many books that have sought to explain the causes and courses of the financial and economic crisis which began in 2007?8. The Shifts and the Shocks is not another detailed history of the crisis, but the most persuasive and complete account yet published of what the crisis should teach us about modern economies and economics.
The book identifies the origin of the crisis in the complex interaction between globalization, hugely destabilizing global imbalances and our dangerously fragile financial system. In the eurozone, these sources of instability were multiplied by the tragically defective architecture of the monetary union. It also shows how much of the orthodoxy that shaped monetary and financial policy before the crisis occurred was complacent and wrong. In doing so, it mercilessly reveals the failures of the financial, political and intellectual elites who ran the system.
The book also examines what has been done to reform the financial and monetary systems since the worst of the crisis passed. ?Are we now on a sustainable course?” Wolf asks. ?The answer is no.” He explains with great clarity why ?further crises seem certain” and why the management of the eurozone in particular ?guarantees a huge political crisis at some point in the future.” Wolf provides far more ambitious and comprehensive plans for reform than any currently being implemented.
Written with all the intellectual command and trenchant judgment that have made Martin Wolf one of the world’s most influential economic commentators, The Shifts and the Shocks matches impressive analysis with no-holds-barred criticism and persuasive prescription for a more stable future. It is a book no one with an interest in global affairs will want to neglect.
Both a detailed analysis of the 2007-2008 economic crisis and a call to action to avert a far more severe meltdown Martin Wolf’s latest book may well be the subject of debate, even strong controversy. I’d argue that this makes it even more worth reading, and would add it to the top of any list of “must read” books, especially for those interested in the state of our economy – past, present, and future. His take on the economic crisis of 2007 goes well beyond other works on the subject. It also isn’t simplistic nor is it reassuring about the state of the economy. And it isn’t a history or rehash of the…
Financial and Monetary System Reform Is Still Unfinished Business In his newest book, Martin Wolf relentlessly explores the ins and outs of the financial and economic crisis which began in 2007-2008.Mr. Wolf first reviews the shocks that have humbled many high-income countries, whose subdued performance stands in sharp contrast with the strong showing of many emerging and developing economies in the aftermath of that crisis.1. A credit crash that has forced many households and businesses to stop spending consistently more than their…