Throughout history, rich and poor countries alike have been lending, borrowing, crashing--and recovering--their way through an extraordinary range of financial crises. Each time, the experts have chimed, "this time is different"--claiming that the old rules of valuation no longer apply and that the new situation bears little similarity to past disasters. This audio book proves that premise wrong. Covering sixty-six countries across five continents, This Time Is Different presents a comprehensive look at the varieties of financial crises, and guides us through eight astonishing centuries of government defaults, banking panics, and inflationary spikes--from medieval currency debasements to today's subprime catastrophe. Carmen Reinhart and Kenneth Rogoff, leading economists whose work has been influential in the policy debate concerning the current financial crisis, provocatively argue that financial combustions are universal rites of passage for emerging and established market nations. The authors draw important lessons from history to show us how much--or how little--we have learned.
Using clear, sharp analysis and comprehensive data, Reinhart and Rogoff document that financial fallouts occur in clusters and strike with surprisingly consistent frequency, duration, and ferocity. They examine the patterns of currency crashes, high and hyperinflation, and government defaults on international and domestic debts--as well as the cycles in housing and equity prices, capital flows, unemployment, and government revenues around these crises. While countries do weather their financial storms, Reinhart and Rogoff prove that short memories make it all too easy for crises to recur.
An important book that will affect policy discussions for a long time to come, This Time Is Different exposes centuries of financial missteps.
Economics professors Carmen M. Reinhart and Kenneth Rogoff reveal that the 2008-2009 financial meltdown which resulted from subprime mortgages is merely the latest in a long line of similar crises, and they argue that the pattern will continue as long as investors continue to favor their ambiguous consideration of future gains over the certainty of past losses when considering investments. Reinhart and Rogoff provide a thorough historical analysis covering more than 60 countries over hundreds of years to show that ever since people began using currency, there have been periods of inflation, deflation, and devaluation which have by now become somewhat predictable. The good news the authors provide is that history has shown that such economic fluctuation is inherent to all markets, and thus nothing to cause panic. The bad news they reveal is that nations which have ignored the mistakes of the past, as seems to be the current case in America, will inevitably suffer a more fatal variety of crash which can cripple an economy for centuries.
- Business + Money Management, Political Science
- Finance, Economic History, Economic Conditions, General
- April 12, 2011
- April 12, 2011
- Carmen M. Reinhart, Kenneth S. Rogoff
- Sean Pratt (Narrator)