[Book Sip] Economist of That Era, Successful Revolutionary or False Prophet?

Some sentences encapsulate the entire content of the book itself, while others instantly reach the reader's heart, creating a point of connection with the book. Here, we introduce such meaningful sentences excerpted from the book. - Editor's note

This book meticulously traces the 40 years from the birth to the defeat of neoliberal economics like a detailed map. The 40 years from 1969 to 2008 were an era of 'the economists' rebellion,' during which a group of economists advocating market liberalism deceived politicians, seized power, and completely transformed social policies and the global economic system. During this period, economists limited taxation and public spending, eased regulations, and boldly opened the path toward globalization. Economists themselves became policymakers, central bank heads, and U.S. Treasury Secretaries, reshaping the world according to their theories. According to the author, economists promised growth but deliberately ignored the distribution of prosperity over the past half-century. Finally, in 2008, the Babel tower they had built collapsed simultaneously. Were they successful revolutionaries of the free market or false prophets? The author presents this story.

In the mid-1970s, Americans also encountered stagflation for the first time. The 1973 oil embargo imposed by Arab countries on Israel's allies plunged the U.S. economy into its deepest recession since the Great Depression. To Keynesian economists, it was very surprising that unemployment and inflation rose simultaneously. It was as if both sides of a balance scale were rising at the same time. Nixon's price control policy was abandoned, but the view that inflation could be subdued was still an irresistible temptation for politicians. --- From Chapter 3, "The War on Inflation"

When Ben S. Bernanke succeeded Greenspan as Federal Reserve Chairman in 2006, he declared that the era of the 'Great Moderation' had begun. This new era was characterized by broader economic stability centered on inflation maintained at a certain level. Economists once again raised a toast, celebrating what they saw as a victory for economics. --- From Chapter 3, "The War on Inflation"

In April 1971, leading economists and bankers from around the world gathered in Bologna, Italy, to discuss stagflation. Developed countries were caught in a dilemma. Existing solutions to inflation were believed likely to increase unemployment, while existing solutions to unemployment were believed likely to raise inflation. As attendees counted prayer beads to calm their minds, Robert Mundell, an economist from the University of Chicago, surprised everyone by claiming that both problems could be solved simultaneously. Mundell boldly asserted that there was a way to lower both inflation and unemployment rates at the same time. Furthermore, he confidently promised that prosperity could be enjoyed again without pain. According to Mundell, the main ingredient of this remedy was massive tax cuts. --- From Chapter 4, "Tax Cuts, Tax Cuts Even If They Don't Work"

The Age of Economists | Written by Binyamin Appelbaum | Translated by Kim Jinwon | 752 pages | Bookie | 35,000 KRW

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