Crashed: How a Decade of Financial Crises Changed the World is a book written by Adam Tooze, published in 2018. The book explores the impact of the financial crisis of 2007-2008 and its aftermath on the global economy and society. Tooze argues that the crisis was not just a sudden shock but rather the culmination of a long-term process of financialization and globalization. He also contends that the response to the crisis, particularly in the form of austerity measures and monetary policy, has had far-reaching consequences for the world economy and society.
Chapter Summaries
Chapter 1: The Crisis
The first chapter of Crashed provides an overview of the financial crisis of 2007-2008. Tooze argues that the crisis was not just a sudden shock but rather the culmination of a long-term process of financialization and globalization. He also highlights the role of government policies, particularly in the United States, in contributing to the crisis.
Chapter 2: The Response
In the second chapter, Tooze discusses the response to the crisis, particularly the austerity measures and monetary policy implemented by governments and central banks around the world. He argues that these measures have had far-reaching consequences for the world economy and society, particularly in terms of inequality and social unrest.
Chapter 3: Europe
The third chapter focuses on the impact of the crisis on Europe. Tooze argues that the crisis exposed deep flaws in the eurozone and that the response to the crisis, particularly the austerity measures imposed on Greece and other countries, has had devastating consequences for European society.
Chapter 4: China
The fourth chapter explores the impact of the crisis on China. Tooze argues that China’s response to the crisis, particularly its massive stimulus program, has had significant consequences for the global economy and society, particularly in terms of trade and geopolitics.
Chapter 5: The Consequences
In the fifth chapter, Tooze examines the long-term consequences of the crisis, particularly in terms of inequality and social unrest. He argues that the response to the crisis has exacerbated these problems and that the world economy is increasingly divided between winners and losers.
Conclusion
Overall, Crashed is a thought-provoking book that provides a detailed analysis of the financial crisis of 2007-2008 and its aftermath. Tooze argues that the crisis was not just a sudden shock but rather the culmination of a long-term process of financialization and globalization. He also contends that the response to the crisis, particularly in the form of austerity measures and monetary policy, has had far-reaching consequences for the world economy and society. While the book is dense and technical at times, it is an important contribution to our understanding of the financial crisis and its aftermath.
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