KRUGMAN WINS NOBEL PRIZE

Princeton economist and NY Times op-ed writer Paul Krugman has been awarded the Nobel prize in economics. While the award is based on his insights on international trade, the Nobel prize also recognizes Krugman's capacity to clarify general economic principles. Here's a partial list of the books that Krugman's written ...

Written in 1999, The Return of Depression of Depression Economics is one of the "must read" books for anyone interested in understanding the economic mess that confronts the international community.

In a few words Krugman questions whether the type of trading and market rescues that went on before 1999 is prudent and sustainable given that there is no real framework for dealing with systemic crisis. He asks the right questions - especially given what we're seeing now. Krugman makes it very clear that the conditions that existed at the domestic level in 1929 (weak regulations, market myopia, little understanding of the financial instruments, etc.) now exist at the international level. Hence the title of the book.

In The Return of Depression Economics Krugman goes through several case studies to demonstrate how the economic fault lines that existed pre-1999 pose a danger to global trade. I've used this book many times in my International Political Economy class. While the book is a bit technical in some places, it is highly accessible. I'm surprised this book hasn't been cited by pundits today. Perhaps it will now.

Another Krugman book that I like is The Great Unraveling: Losing Our Way in the New Century (2003). The book is really a collection of his essays, mostly from the NY Times. I especially like this book because it allows the reader to see how prescient Krugman has been on the economic challenges of our day.

Few recall that it was Paul Krugman, at the height of the California Blackouts, who first raised the issue of whether Enron and other energy players were deliberately gaming the system and ripping off California consumers. It turns out Krugman was right. The narrative on this rip-off was real time; the analysis alone makes the book a bargain.


Krugman's most recent book, The Conscience of a Liberal (2007), pulls his ideas together in a very readable fashion. Quite simply, Krugman proves that he is one of the best writers on the planet when it comes to explaining complex financial issues, and the challenges of our day.

In all, the Nobel Prize helps validate what Paul Krugman has been saying for years. While the right wing crazies will no doubt lament the Nobel committee's "declining standards" or refer to other "shiny spoon" nonsense, the fact is the Nobel Prize is well deserved.

Our presidential candidates, and the world, would do well to listen to what Krugman has to say about the economic issues confronting us today.

- Mark