END THIS DEPRESSION NOW! A REVIEW OF PAUL KRUGMAN'S BOOK (W. W. NORTON COMPANY, NEW YORK, 2013)
Paul Krugman is an American economist, professor and columnist. In 2008 he received the Nobel Memorial Prize in Economic Sciences for his contribution to the literature on international trade. He is the author of more than 20 books and 200 scholarly articles, ranging from international economics through income to taxation. His most recent book, End This Depression Now! became a New York Times best seller in both hardcover and paperback. It focuses on examining how to recover from the depression, contributing to the discussions about whether to apply a Keynesian fiscal stimulus or implement austerity measures. In the paperback version, on which this review is based, the author evaluates whether the findings presented in the hardcover version remain well founded after recent major political and economic events (the US elections, and European austerity measures) and finds that the essential message remains unchanged. The book provides an easily comprehensible explanation of the depression, to even readers with a limited knowledge of the economic and financial sciences, although there are parts where Krugman dives deeper into specific details and offers a deeper understanding for more expert readers as well. Krugman's main thesis is that the economic disaster was just a minor malfunction of the economic engine which could have been avoided with more intellectual clarity and willingness to act by people in a position of power. Knowledge about previous depressions should be used more intensely, and the main remedy should be job creation instead of austerity measures. Although the financial sector suffered major losses, Krugman considers the human impact to be most important. Due to the crisis the unemployment rate doubled, and jobs which were available were downgraded or became lower paid. The high level of