Praise for the Author's Previous Works

The Other Half of Macroeconomics and the Fate ofGlobalization (2018)

"Richard Koo has had some of the most important economic ideas of the last two decades. This book extends his important perspective to a wider range of long-run issues. Koo's arguments deserve the attention of everyone who cares about achieving strong, sustained economic growth in the industrial world."

-Lawrence H. Summers, Charles W. Eliot University Professor, Harvard University

"Richard Koo is the most important economist of our time because he alone has devised a revolutionary framework that accurately explains the global economic crisis. His work is revolutionary not because it overthrows all the economic theory that preceded it, but rather because it completes it. Koo's policy prescriptions offer the world the best chance of restoring prosperity before this economic crisis becomes a political crisis and then a geopolitical crisis. The sooner our policymakers understand the implications of this extraordinary book-and act upon them-the safer we all will be."

-Richard Duncan, Author, The Dollar Crisis; Publisher, Macro Watch

"Richard Koo is one of the most astute analysts of macroeconomic policies, showing that only fiscal policy is effective in balance sheet recessions. He now expands his view to the world economy and the history of advanced countries' economic development, arguing that fiscal expansion is the only effective macroeconomic policy for the foreseeable future. But instead of John Maynard Keynes' suggestion that burying money and digging it up helps, he argues forcibly that socially productive investments are needed for advanced economies to keep up with emerging ones."

-Peter Temin, M.I.T.; Author, The Vanishing Middle Class: Prejudice and Power in a Dual Economy (2017)

"In the wake of the Great Recession, Richard Koo challenges us in his latest book to look at 'the other half of macroeconomics,' one in which the primary concern of the private sector is to 'minimize debt' rather than 'maximize profit.' Koo brings a wealth of knowledge and real-world experience working in both the U.S. and East Asia to his discussion of the stages of economic development. I find his examples from Japan and China especially compelling. I warmly recommend this book."

-Axel Leijonhufvud, Professor Emeritus, UCLA and University of Trento, Italy

"Richard Koo's The Other Half of Macroeconomics and The Fate of Globalization will soon rival Piketty's Capital as the economics book to-date of our century. Koo's book, as its title suggests, divides in half. The first, like John Maynard Keynes' The General Theory, deeply subverts traditional economic theory. The second, like Karl Polanyi's The Great Transformation, sets out a new analysis of recent economic history and maps a new fork in the road to humankind's future. Except for dogmatists and anti-humanitarians, it is required reading."

-Edward Fullbrook, Founder, World Economics Association; Editor, Real-World Economics Review

"Anyone who has a deep interest in globalization should read this book. It is at one time thoughtful, analytical, original, policy-relevant and highly engaging."

-Jeffrey E. Garten, Dean and Professor Emeritus, Yale University School of Management

"The Great Depression produced Keynes, and the Great Recession produced Koo. With this book, he not only ushers economic analysis into the 21st century but also goes back centuries to show what has been missing in economics all along. This highly accessible book contains new insights worthy of a Nobel Prize."

-Shousaku Murayama, CEO, iPS Academia Japan, Kyoto University; former Research Director, Bank of Japan

The Escape from Balance Sheet Recession and the QE Trap: A Hazardous Road for the World Economy (2014)

"Richard Koo has been a pioneer in recasting macroeconomics for the current era of financial crisis and potential deflation. This book presents his latest thinking in a clear and powerful way. Agree or disagree his work deserves close study if the next decade in the industrial world is going to be better than the last."

-Lawrence Summers, President Emeritus and Charles W. Eliot University Professor, Harvard University; former U.S. Secretary of the Treasury

"This is an important, stimulating, exciting and timely book. Guided by the ideas in this book, growing numbers of experts are appreciating the parallels between the current world-wide crisis and the crisis Japan experienced 15 years ago. The basic insight-that in the presence of persistent liabilities, the private sector minimizes debt-is one that needs to be fully appreciated in order for appropriate policies to be devised. This is a must-read for all those seeking to respond to the current economic malaise."

-Dennis J. Snower, President, Kiel Institute for the World Economy; Professor of Economics, Christian-Albrechts University, Kiel

"Koo's The Escape from Balance Sheet Recession and the QE Trap provides the most insightful guide to current macroeconomic policy available today. Koo's concept of 'balance sheet recessions' adds depth and detail to observations of the 'liquidity trap' and 'zero lower bound' of interest rates. He explains what needs to be done and how long it could take. Everyone concerned with macroeconomic policy needs to read this analysis to learn how the world economy can be revived."

-Peter Temin, Elisha Gray II Professor Emeritus of Economics, Massachusetts Institute of Technology

"I have always liked the Richard Koo style - succinct theories, razor-sharp points, self-sustaining logic, and, more importantly, a set of workable solutions. It's definitely a worthy read."

-Gao Xiqing, Professor, School of Law, Tsinghua University; former Vice Chairman and President, China Investment Corporation

"In the wake of the financial crisis of 2008, governments and financial institutions have instituted a wide range of changes in such areas as risk management, regulation, market organization, and fiscal and monetary policy. Unfortunately, however, these measures have suffered from lack of a unified recognition of the fundamental problem. In a clear, engaging and penetrating way, Richard Koo has diagnosed the core nature of the challenge and the appropriate response. The Escape from Balance Sheet Recession is an essential guide for anyone interested in the future of the global economy."

-Jeffrey E. Garten, Juan Trippe Professor of International Trade and Finance and former Dean, Yale School of Management; former Undersecretary of Commerce

"When the history of this depression is written, policymakers who ignore Koo's findings will be judged harshly for imposing unnecessary suffering on their societies."

-Richard Duncan, Author, The Dollar Crisis; Publisher, Macro Watch

The Holy Grail of Macroeconomics: Lessons from Japan's Great Recession (2008, revised 2009)

". the Japanese policymakers who (said) the U.S. was in danger of falling into a prolonged period of economic weakness were right. To understand why . you need to read a brilliant book by Richard Koo."

-Martin Wolf, Financial Times

"There will probably never be a last word on the Japanese financial catastrophe of the 1990s but Richard Koo's book may be the most significant analysis ever published. Agree or disagree, any analyst of the current United States situation must consider Koo's arguments."

-Lawrence H. Summers, Director, National Economic Council; former President, Harvard University and U.S. Secretary of the Treasury

"Richard Koo does it again. By presenting a unique theory regarding the Great Depression and Japan's recession of the last 15 years, Koo offers a new understanding of current problems in the U.S. and other economies. With many pearls of analytical wisdom, The Holy Grail of Macroeconomics: Lessons from Japan's Great Recession is a must-read for economists, policymakers and individual investors alike."

-Nobuyuki ldei, Founder & CEO, Quantum Leaps Corporation; former Chairman & CEO, Sony Corporation

"Richard Koo's pioneering work on balance-sheet recession has been invaluable in understanding the difficulty faced by Japan's economy and monetary authorities during the past 15 years. In this book, he has shown that the U.S. Great Depression was also driven by the same balance sheet concerns of the private sector, indicating that this kind of recession can happen to any post-bubble economy. I sincerely hope that the lessons contained in this book are put to good use in fighting similar recessions elsewhere, including the U.S. subprime crisis."

-Yasushi Mieno, former Governor, Bank of Japan

"The Holy Grail of Macroeconomics presents a brilliant and original framework for understanding-and overcoming-a post-bubble economic crisis such as the one the world faces today. By discrediting the conventional view that monetary policy...