First published 2010
Economic disasters strike with predictable patterns, but most economists treat them as random accidents. Nouriel Roubini saw the recent financial crisis coming years before his colleagues recognized the warning signs. He developed methods that revealed how financial systems collapse in cycles rather than isolated events. Roubini and coauthor Stephen Mihm trace these patterns across countries and centuries, from the Great Depression to crises in Mexico, Thailand, Brazil, Pakistan, and Argentina. They show how historical analysis combined with global economics exposes the fragile nature of financial markets. The authors examine theories, statistics, and mathematical models with appropriate skepticism given recent failures. They explain how to recognize instability in global financial systems, identify pressure points, and learn from past episodes of irrational market behavior. The book maps how financial contagion spreads internationally and offers strategies for planning ahead. Most importantly, Roubini and Mihm present solutions for escaping current economic troubles and preventing future ones.
Genres: politics, economics, non-fiction, 21st-century, finance, academic
Vibes: analytical, informative, thought-provoking
Tropes: expert-analysis, predictive-modeling
368 pages · Hardcover · Penguin Press