The Holy Grail of Macroeconomics: Lessons from Japan's Great Recession Paperback – 14 Jul 2009
- Choose from over 13,000 locations across the UK
- Prime members get unlimited deliveries at no additional cost
- Find your preferred location and add it to your address book
- Dispatch to this address when you check out
Frequently Bought Together
Customers Who Bought This Item Also Bought
Enter your mobile number below and we'll send you a link to download the free Kindle App. Then you can start reading Kindle books on your smartphone, tablet, or computer - no Kindle device required.
Getting the download link through email is temporarily not available. Please check back later.
To get the free app, enter your mobile phone number.
About the Author
Richard C. Koo is the Chief Economist of Nomura Research Institute, the research arm of Nomura Securities, the leading securities house in Japan. Consistently voted as one of the most reliable economists by Japanese capital and financial market participants for nearly a decade, he has also advised successive prime ministers on how best to deal with Japan′s economic and banking problems. He served as an economist with the Federal Reserve Bank of New York, and was a Doctoral Fellow of the Board of Governors of the Federal Reserve System. Author of many books, including Balance Sheet Recession: Japan′s Struggle with Uncharted Economics and its Global Implications, and a visiting professor of Waseda University, he was awarded the Abramson Award by the National Association of Business Economics, Washington, D.C. in 2001.
Reviews from the previous edition
"...provide fascinating insights into the problems of Japan...interesting thesis" (Wilmott.com/blogs, August 2009)
"…the Japanese policymakers who told everyone the US was in danger of falling into a prolonged period of economic weakness were right. To understand why this is true, you need to read a brilliant book by Richard Koo of the Nomura Research Institute." (Financial Times, January 2009)
"…the definitive book on Japan′s decade–long recession in the 1990s." (USA Today, March 2009)
"Books about the current global economic crisis are being written and published by the truckload. But few – perhaps none – are worth reading… Richard Koo, chief economist at the Nomura Research Institute in Tokyo, a think tank attached to Japan′s biggest investment bank, watched Japan′s ′lost decade′ from an excellent vantage point: he was close enough to understand the detail, data and ways in which both corporate and political decisions were made, and independent enough to be able to analyse what happened in a reasonably detached and cool way." (Survival, May 2009)
"A must–read to an understanding of what Japan went through and what the United States and Europe may experience is Koo′s latest book The Holy Grail of Macroeconomics: Lessons from Japan′s Great Recession." (The Edge Financial Daily, December 2008)
"...provide fascinating insights into the problems of Japan...interesting thesis" (Wilmott.com/blogs, August 3rd 2009) See all Product Description
What Other Items Do Customers Buy After Viewing This Item?
Top Customer Reviews
It's still boom and bust. Koo claims that in the boom phase, monetary policy works, but not fiscal; in the bust phase, only fiscal policy works, not monetary. He shows how monetary policy cannot fight a slump. He contends that only huge fiscal stimuli, government actions to boost domestic demand, can prevent slumps.
Koo claims that, in the 1930s depression, in Japan's recession since 1990, and in the present crisis, the problem was the private sector's lack of demand for loans, not a lack of funds from the central banks. Contrary to the consensus, these depressions were not caused by the wrong monetary policy.
How to fight a slump? Cutting spending to reduce government debt is the road to disaster. In the 1930s, both President Hoover and Chancellor Bruning insisted on balancing the budget, which crashed the US and German economies. In 1945 the British government's debt was 250% of GDP, but the country survived. Between 1933 and 1936, President Roosevelt raised government spending by 125%, so GDP rose by 48% and tax revenues rose by 100%. But in 1937 he changed tack and cut spending: industrial output fell by 33%.
Japan's recession (caused by falls in the value of its assets - land and loans) destroyed 1500 trillion yens' worth of wealth - three years of Japan's GDP.Read more ›
While I have rated it 5 stars it does have some flaws. As one of the other reviewers have commented the data and the quality of the charts are rather lacking. It would have been nice to have more detail and some of the underlying data.
While the author might be right; his approach lacks some academic rigour. The book doesn't sufficiently test alternative hypothesises and eliminate them as possible explanations. Rather the author immediately moves onto his theory as the only possible explanation.
Stylistically, it could have been shorter, a little less repetitive and more concise. Though these are minor complaints.
This shock causes them to stop spending and borrowing and direct their space cash-flow to repaying their debts. This is sensible from the individuals point of view, but, when most individuals and businesses are facing the same problem the bottom drops out of the economy, a deflation results. With borrowings built up over years and only spare can flow to pay back with (assets have dropped) its a long way back...
The examples in the book explain the mechanism and the correct policy responses and how the incorrect responses such as those in the US following the Wall Street Crash of 1929 brought about the great depression of the 30's.
In 2008 the global financial crisis was just getting underway, the Author was right on the money and correctly explained what was coming next. I disagree with the reviewer who said the text lacked academic rigour, it is convincing from a simple mathematical basis.Read more ›
Most Recent Customer Reviews
Amazing book, although somewhat repetitive.
Koo has a proven track record and debunks the most prevalent myths about what went wrong, and is still going wrong to this... Read more
This book makes a clear case with plenty of evidence for the core reasons behind the Japanese stagnation of the last 20 year or so. Read morePublished on 1 May 2013 by mahoneko
An important part of my personal learning curve. It is unravelling all the gobbledigook for me. We can only change our world one by one, bit by bit.Published on 8 April 2013 by marilyn matthieson
There is a one star review below from someone who admits he has not even read the book. I am buying this book and will update this review later. Read morePublished on 13 Dec. 2011 by Mr. Patrick D. Creamer
This book is an excellent exercise in well structured logical argument and the clear concise communication of a complex subject. Read morePublished on 23 Jan. 2011 by Rob Julian
An inspiring read! Nomura's chief economist, Richard Koo enriches our understanding of how to deal with recessions. Read morePublished on 31 Oct. 2010 by Nicholas Clark
An excellent read.
I'm not an economist but the logic presented throughout this is thorough, compelling and at all times reinforced by statistical evidence. Read more