ng-run effects of economy instead of the short-run. The Asian crisis is a prime example of this point. Instead of looking what happened years ago, what’s been done is done, we should focus on the short-run and into the future. To ensure our own economic stability, we should put our efforts and knowledge into the effects that economic policies will have on the short-run side. But can it happen again? Sure it can happen again. Krugman asks the question, why now? Why are the ghosts of the 1930’s visiting us again? Krugman believes that, “…some nations are paying for their failure to obey the necessary dictates of free markets. Asian economies, in particular, are being punished for the sins of cronycapitalism”Though true, this is not the exact reason why the Asian crisis happened. They got hit so hard because Asian economies have weaknesses in their policies and institution.After completing this book, the whole Asian panic has taught me that small events can cause huge disasters. We should employ our “beta” economic policies on smaller scale economies. Governments should educate their citizens to prevent a panic. Large investors should advise the countries that they are investing in to prevent any harm if they make bad financial decisions. Reading this book was fairly difficult but it gave me insight to the complexity of global economics. ...
