A leading economic historian presents a new history of financial
crises, showing how some led to greater globalization while others kept
nations apart
The eminent economic historian Harold James presents a new perspective
on financial crises, dividing them into "good" crises, which ultimately
expand markets and globalization, and "bad" crises, which result in a
smaller, less prosperous world. Examining seven turning points in
financial history--from the depression of the 1840s through the Great
Depression of the 1930s to the Covid-19 crisis--James shows how crashes
prompted by a lack of supply, like the oil shortages of the 1970s, lead
to greater globalization as markets expand and producers innovate to
increase supply. By contrast, crises triggered by a lack of demand--such
as the Global Financial Crisis of 2007-2008--result in less
globalization as markets contract, austerity measures are imposed, and
skepticism of government grows.
By considering not only the times but also the observers who shaped our
understanding of each crisis--from Karl Marx to John Maynard Keynes to
Larry Summers--James shows how the uneven course of globalization has
led to new economic thinking, and how understanding this history can
help us better prepare for the future.
