Howard Davies

Après le Déluge

Crashed: How a Decade of Financial Crises Changed the World

By

Allen Lane 706pp £30 order from our bookshop

Adam Tooze, who is now a professor at Columbia University in New York, has published two brilliant books of 20th-century economic history. The first, The Wages of Destruction, a highly influential analysis of the economics of Nazi Germany, revealed in particular the impact of raw material shortages on the German war strategy and highlighted the innovative efforts of German industry to overcome them. The second, The Deluge, focused on the reconstruction of Europe after the cataclysm of the First World War, and especially the remarkable role played by the United States, in spite of the retreat of its leaders from multilateralism.

Now, perhaps influenced by his move to New York, he has turned his gaze on more recent events: specifically, the financial crisis that began in 2007, the effects of which remain painfully with us today. While most banks have recovered, and are far better capitalised than before, growth remains subdued, in spite of historically low interest rates, and there is little sign that Western economies, particularly those in Europe, can recover the output lost in the crisis. Indeed, there are signs that we may have settled into a new equilibrium, with output growth heavily dependent on ever-higher indebtedness, which in turn may be planting the seeds of the next downturn. 

Sign Up to our newsletter

Receive free articles, highlights from the archive, news, details of prizes, and much more.

Follow Literary Review on Twitter

  • Last Tweets

    • The entertaining Howard Jacobson is in conversation with Prof John Mullan at the Queen’s Park Book Festival on Sund… ,
    • 'A modest and retiring man, Thompson spent his life describing apple varieties and recommending the best – Ribston… ,
    • 'Macfarlane is a poet with the instincts of a thriller writer, an autodidact in botany, mycology, geology and palae… ,
    • 'Some scholars attribute Shakespeare’s pre-eminence to four centuries of propaganda and not to the fact that Hamlet… ,
    • RT : We would appreciate any retweets ,
    • We've just stumbled on a gem from the LR archive. The emoluments page from May 1995, in which one reviewer asked to… ,
    • Unlike Mary Shelley's monstrous creation, Jeanette Winterson's Frankenstein-inspired novel feels 'barely alive', sa… ,