This is my eighth book review on the financial crisis. To see my previous seven reviews see my previous articles. My most recent book is This Time is Different by Kenneth Rogoff and Carmen Reinhart. Dr Rogoff is a professor of economics at Harvard University, and Dr Reinhart is a professor of economics at the University of Maryland.
The authors document financial crises that occurred over the past several hundred years. The authors discuss various topics such as currency debasement, banking crises, Default (both domestic and foreign), exchange rate crises, and inflation. All these issues are interrelated and many times all these factors will converge at once.The authors dispel the misconception that there is an difference between emerging markets and developed economies in this regard.
The main theme of the book is that every time a bubble develops in a country whether emerging market or developed the thinking is the bubble will never burst. The authors describe this attitude as “This Time is Different”. The argument usually goes that our financial systems are more sophisticated now and have learned from our mistakes, and therefore past bubbles will not be repeated.
To purchase the book on amazon.com click on the following link