The Post 'Great Recession' US Economy: Implications for Financial Markets and the Economy, 2nd Edition

The Us Is Slowly Recovering From The Aftermath Of The Burst Of The 'new Economy' Bubble - Which Was One Of The Worst In Monetary History. In This Updated Edition, Philip Arestis And Elias Karakitsos Examine The Causes And Consequences Of The Burst Of The 'new Economy' Bubble And Investigate The Impact On Financial Markets. The Causes And Consequences Of The Internet Buble -- The Current Financial Crisis And The Origins Of Excessive Liquidity -- Wages And Prices And The Proper Conduct Of Monetary Policy -- Corporate Profits And Relationship To Investment -- Long-term Risks To Investment Recovery -- The Housing Market And Residential Investment -- Long-term Risks Of Robust Consumer Behaviour -- Foreign Demand -- The Us External Imbalance And The Dollar : A Long-term View -- The Long-term Risks To Us Financial Markets. Philip Arestis And Elias Karakitsos. Includes Bibliographical References And Index. Contents......Page 8 List of Figures......Page 9 List of Tables......Page 14 Prolegomena......Page 15 Preface to the Second Edition......Page 22 1 Introduction......Page 26 2 The Causes and Consequences of the Internet Bubble......Page 48 3 The Current Financial Crisis and the Origins of Excessive Liquidity......Page 66 4 Wages and Prices and the Proper Conduct of Monetary Policy......Page 83 5 Corporate Profits and Relationship to Investment......Page 122 6 Long-Term Risks to Investment Recovery......Page 145 7 The Housing Market and Residential Investment......Page 175 8 Long-Term Risks of Robust Consumer Behaviour......Page 204 9 Foreign Demand......Page 237 10 The US External Imbalance and the Dollar: A Long-Term View......Page 264 11 The Long-term Risks to US Financial Markets......Page 298 Notes......Page 328 Bibliography......Page 335 Index......Page 343 "Following the success of the first edition in predicting that as a result of the excessive liquidity at the time, the internet bubble would be transformed into a housing bubble, which would burst once long-term interest rates turned below short-term interest rates, which it did, the second edition has been built on similar grounds. It thereby builds systematically an appropriate framework to explain and analyse the economics of depression or the asset and debt deflation process that has been relevant in the last three cycles. It shows that the internet, housing and commodities bubbles are interconnected. Explaining the origins of the recent credit crisis, this volume works out the implications for the US economy and financial markets, while suggesting how policy should be formulated to avoid and deflect future bubbles This book is indispensable reading for all interested in macroeconomics, business cycle analysis, financial crises, credit crises, financial markets, monetary policy and the increasing role of the housing market in macroeconomics. --Book Jacket