The Birth of Crisis Economics

The Birth of Crisis EconomicsThe present day economic crisis is nothing new. In fact, since the dawn of modern economy in the late eighteenth century, crisis is a permanent fixture. As the book, Return to Order states, this is in part due to the frenetic intemperance found in sectors of modern economy that are constantly throwing things out of balance.

Subscription11The reoccurring nature of these crises is affirmed by Nouriel Roubini and Stephen Mihn who state: “In the history of modern capitalism, crises are the norm, not the exception. That’s not to say that all crises are the same. Far from it: the particulars can change from disaster to disaster, and crises can trace their origins to different problems in different sectors of the economy.” (Nouriel Roubini and Stephen Mihn, Crisis Economics: A Crash Course in the Future of Finance, Penguin Books, New York, 2011, p. 15)