The Age of Diminished Expectations, Third Edition: U.S. Economic Policy in the 1990s [Paperback]

Paul Krugman (Author)

Book Description

ISBN-10: 0262611341 | ISBN-13: 978-0262611343 | Publication Date: August 8, 1997 | Edition: third edition

Paul Krugman's popular guide to the economic landscape of the 1990s has been revised and updated to take into account economic developments of the past three years. New material in the third edition includes:- A new chapter--complete with colorful examples from Lloyds of London and Sumitomo Metals--on how risky behavior can lead to disaster in private markets.- An evaluation of the Federal Reserves role in reining in economic growth to prevent inflation, and the debate over whether its growth targets are too low.- A look at the collapse of the Mexican peso and the burst of Japans bubble economy.- A revised discussion of the federal budget deficit, including the growing concern that Social Security and Medicare payments to retiring baby boomers will threaten the solvency of the government.Finally, in the updated concluding section, the author provides three possible scenarios for the American economy over the next decade. He warns that we live in an age of diminished expectations, in which the voting public is willing to settle for policy drift--but with the first of the baby boomers turning 65 in 2011, the U.S. economy will not be able to drift indefinitely.

Editorial Reviews

From Library Journal

This book occupies fairly rare territory: the middle ground. Krugman's most likely scenario for the 1990s is neither crash nor boom but a continuation of the 1980s, with some unemployment, more inflation, and only slow growth in income. Surprisingly, Krugman notes, the public will continue to be satisfied with this performance. Designed for the general reader, the book covers the important economic problems and proposed solutions. One also discovers which problems should be real concerns and which are even amenable to solution. Recommended especially for public libraries as a well-balanced introduction to the 1990s.
- Richard C. Schiming, Mankato State Univ., Minn.
Copyright 1990 Reed Business Information, Inc. --This text refers to an out of print or unavailable edition of this title.

Review

The Age of Diminished Expectations is a remarkable achievement, a quick read that tells you much of what there is to know about the great economic issues of the day. Peter Passell , New York Times Book Review

See all Editorial Reviews

Product Details

• Paperback: 244 pages
• Publisher: The MIT Press; third edition edition (August 8, 1997)
• Language: English
• ISBN-10: 0262611341
• ISBN-13: 978-0262611343
• Product Dimensions: 8.9 x 5.9 x 0.5 inches
• Shipping Weight: 12.6 ounces (View shipping rates and policies)
• Average Customer Review: 3.9 out of 5 stars  See all reviews (21 customer reviews)
• Amazon Best Sellers Rank: #922,584 in Books (See Top 100 in Books)

More About the Author

Paul Krugman is the recipient of the 2008 Nobel Prize in Economics. He writes a twice-weekly op-ed column for the New York Times and a blog named for his 2007 book "The Conscience of a Liberal." He teaches economics at Princeton University. His books include "The Accidental Theorist," "The Conscience of a Liberal," "Fuzzy Math," "The Great Unraveling," "Peddling Prosperity," and two editions of "The Return of Depression Economics," both national bestsellers.

Customer Reviews

Most Helpful Customer Reviews

11 of 11 people found the following review helpful:

4.0 out of 5 stars We must strive for more, August 9, 2002

By 

Pumpkin King - See all my reviews

This review is from: The Age of Diminished Expectations, Third Edition: U.S. Economic Policy in the 1990s (Paperback)

Krugman's argument in this book is that the US economy, while not doing badly, isn't doing that well. Surely we can do better if only we expect more from our country. He goes on to provide an amazing economics lesson for the lay reader that discusses major economic topics, recent economic issues that are highly political, large problems with our current system, and what the future might hold. The chapters on international finance are particularly well written.

It's not the most recent of books, but it explains quite a lot of stuff, and most importantly, as with many of Krugman's books, you get to have a feel for the way an economist thinks. Economics is a state of mind in the sense that the more you study it, the more difficult it becomes to connect with other people. They just won't understand how your mind is thinking about things. What Krugman does is to make economics quite understandable without dumbing it down to the point where most academics would discard it as popular junk. He has strong political leanings that you are aware of if you read his column in the Times, but he is smart, and the "Age of Diminished Expectations" is definitely a good read.

7 of 8 people found the following review helpful:

3.0 out of 5 stars Excellent analysis. Poor forecast., May 29, 2003

By 

Gaetan Lion - See all my reviews
(TOP 1000 REVIEWER)    (REAL NAME)   

This review is from: The Age of Diminished Expectations, Third Edition: U.S. Economic Policy in the 1990s (Paperback)

Paul Krugman is a world class economist. He foresees and understands economic trends better than most. His explanation of fiscal policies, international trade, and macroeconomic concepts are entertaining and clear.

Unfortunately, nothing he foresees comes true. In this book, he makes a case that because of recurring budget deficits causing a decline in our national savings rate, our investment rate will drop. This will cause a decline in productivity, and a resulting decline in the growth of our economy (GDP) and our living standard (GDP per capita). Thus, this will result in "The Age of Diminished Expectations."

The rest is history as they say. The nineties did not turn out the way Paul Krugman envisioned them. The economy increased rapidly, and so did living standards. He did not foresee the huge net foreign investments that bridged the gap between our low domestic savings rate and our high investment rate.

Well, nobody is perfect. Economic forecasting is challenging at best. Overall, it is still a very interesting and informative book. Everything he said in it will eventually be true, it is just a matter of when. But, it certainly was not true during the nineties which was his timeframe target at the time he wrote the book.

3 of 3 people found the following review helpful:

5.0 out of 5 stars an excellent introduction to the big economic issues, November 18, 1998

By 

[e-mail] (St Louis) - See all my reviews

This review is from: The Age of Diminished Expectations, Third Edition (Hardcover)

I found this an excellent account of the big economic issues facing the US today.It is more measured (and perhaps a little less fun!)than a lot of Krugman's popular writing .One fault with the book is it concentrates too much on macroeconomic and international issues as opposed to say industrial and environmental regualtion,the legal system and so forth.The chapter on corporate governace was among the best in the book and more chapters on microeconomic issues would definitely improve the book.