The Post 'Great Recession' US Economy:Implications for Financial Markets and the Economy

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.

Philip Arestis is Honorary Senior Departmental Fellow, Cambridge Centre for Economic and Public Policy (CCEPP), Department of Land Economics, University of Cambridge, UK; Professor of Economics, Department of Applied Economics V, University of the Basque Country, Spain; and Senior Research Fellow at the Levy Institute, New York City. His publications include Introducing Macroeconomic Modelling: An Econometric Study of the United Kingdom and Money, Pricing Distribution and Economic Integration. He has been editor and joint editor, and has served on the editorial board, of a number of journals.
Elias Karakitsos is Director of Guildhall Asset Management, chairman of Global Economic Research, and Associate Member of the Centre for Economic and Public Policy, University of Cambridge. He was a professor at Imperial College, Head of Economics for 10 years and has acted as an advisor to governments and financial institutions, including Citibank, Oppenheimer, Allianz, Credit Agricole and Standard Chartered. He is the author of five books/monographs, 90 papers in learned journals and more than 330 reports on financial markets.