This Time Is Different：Eight Centuries of Financial Folly

Throughouthistory,richandpoorcountriesalikehavebeenlending,borrowing,crashing--andrecovering--theirwaythroughanextraordinaryrangeoffinancialcrises.Eachtime,theexpertshavechimed,"thistimeisdifferent"--claimingthattheoldrulesofvaluationnolongerapplyandthatthenewsituationbearslittlesimilaritytopastdisasters.Thisbookprovesthatpremisewrong.Coveringsixty-sixcountriesacrossfivecontinents,ThisTimeIsDifferentpresentsacomprehensivelookatthevarietiesoffinancialcrises,andguidesusthrougheightastonishingcenturiesofgovernmentdefaults,bankingpanics,andinflationaryspikes--frommedievalcurrencydebasementstotoday'ssubprimecatastrophe.CarmenReinhartandKennethRogoff,leadingeconomistswhoseworkhasbeeninfluentialinthepolicydebateconcerningthecurrentfinancialcrisis,provocativelyarguethatfinancialcombustionsareuniversalritesofpassageforemergingandestablishedmarketnations.Theauthorsdrawimportantlessonsfromhistorytoshowushowmuch--orhowlittle--wehavelearned.Usingclear,sharpanalysisandcomprehensivedata,ReinhartandRogoffdocumentthatfinancialfalloutsoccurinclustersandstrikewithsurprisinglyconsistentfrequency,duration,andferocity.Theyexaminethepatternsofcurrencycrashes,highandhyperinflation,andgovernmentdefaultsoninternationalanddomesticdebts--aswellasthecyclesinhousingandequityprices,capitalflows,unemployment,andgovernmentrevenuesaroundthesecrises.Whilecountriesdoweathertheirfinancialstorms,ReinhartandRogoffprovethatshortmemoriesmakeitalltooeasyforcrisestorecur.Animportantbookthatwillaffectpolicydiscussionsforalongtimetocome,ThisTimeIsDifferentexposescenturiesoffinancialmissteps.