June 5, 2012
Recently I have been dipping into The Great Crash 1929 by J.K Galbraith. It is a wonderful book that I cannot recommend highly enough. Everyone should read it. It should be part of the curriculum in every country for every student. I can only hope that there are finance ministers around the world reading it now.
From the end of the book I take a few sentences today where Galbraith describes the main factors that caused the great depression. As he saw them, they were:
(i) The bad distribution of income.
(ii) The bad corporate structure.
(iii) The bad banking structure.
(iv) The dubious state of the foreign balance.
(v) The poor state of economic intelligence.
Sounds depressingly similar to the state of the eurozone today, doesn’t it…financialguy