Other Half of Macroeconomics and the Fate of Globalization (eBook)

RICHARD C. KOO is the Chief Eco-nomist of Nomura Research Institute, where he is responsible for providing independent economic and market analysis to Nomura Securities, the leading securities house in Japan, and its clients. Best known for his theory of balance sheet recessions, Koo has advised several Japanese prime ministers over the last thirty years, and for the past ten years, he has advised numerous Western governments and central banks on how best to address post-bubble economic and banking problems. Before joining Nomura in 1984, Richard, a US citizen, was an economist with the Federal Reserve Bank of New York. Prior to that, he was a Doctoral Fellow of the Board of Governors of the Federal Reserve System. In addition to being one of the first non-Japanese to participate in the development of Japan's five-year economic plan, he taught at Waseda University in Tokyo as a visiting professor and is now a Senior Advisor to the Center for Strategic and International Studies in Washington, D.C.

Preface ix

About the Author xiii

Chapter 1 Introduction to the Other Half of Macroeconomics 1

Chapter 2 Balance Sheet Problems Create Shortage of Borrowers 17

Chapter 3 Dearth of Investment Opportunities Can Deter Borrowers 53

Chapter 4 Macroeconomic Policy During the Three Stages of Economic Development 83

Chapter 5 Challenges of Remaining an Advanced Country 107

Chapter 6 Helicopter Money and the QE Trap 127

Chapter 7 Europe Repeating Mistakes of 1930s 169

Chapter 8 Banking Problems in the Other Half of Macroeconomics 195

Chapter 9 The Trump Phenomenon and the Conflict Between Free Capital Flows and Free Trade 225

Chapter 10 Rethinking Economics 257

References & Bibliography 281

Afterword 287

Index 289