The Age of Stagnation ─ Why Perpetual Growth Is Unattainable and the Global Economy Is in Peril

The global economy is entering an era of protracted stagnation, similar to what Japan has experienced for over a decade. That is the message of this brilliant and controversial summary of our current economic predicament from an internationally respected consultant and commentator on financial markets, who predicted the great crash of 2006. The author challenges the assumption that growth can be perpetual and questions the ability of political leaders to enact the tough structural changes needed. He is particularly critical of the "easy money" approach to dealing with the great recession of 2008, citing the dangers of excessive debt and deep-seated fundamental imbalances. The fallout of these poor policies, he argues, will affect not only the business sector, but the lifestyles and prosperity of average citizens and future generations.

The author concludes with a thought experiment illustrating the large-scale changes that will be necessary to restore economic, financial, and social sustainability. This experiment has already been tried in Iceland, which went bankrupt in the wake of the 2008 crisis, and now, after a painful adjustment, is on the road to recovery.

Written for the lay reader and peppered with witty anecdotes, this immensely readable book clearly explains the missteps that created the current dilemma, why a recovery has proved elusive, and the difficult remedies that must eventually be applied to ensure a stable future.

Satyajit Das is an internationally respected expert in finance, with over 35 years' experience. In 2014, Bloomberg nominated him as one of the fifty most influential financial thinkers in the world. He has worked for CitiGroup, Merrill Lynch, and the TNT Group and acted as a consultant advising banks, investors, corporations, and central banks throughout the world. He has published many highly regarded works on derivatives and risk management as well as a number of works targeting more general readers, most recently Extreme Money: The Masters of the Universe and the Cult of Risk andTraders, Guns & Money: Knowns and Unknowns in the Dazzling World of Derivatives. Das presciently anticipated many aspects of the global financial crisis in 2006. He subsequently warned, in 2011, about sovereign debt problems, anticipating the restructuring of Greek debt and the increasing problems of China and emerging economies. He was featured in Charles Ferguson's 2010 Oscar Award-winning documentaryInside Job and the 2012 PBS Frontline series Money, Power & Wall Street. He has appeared in the financial media throughout the world and contributes to such prestigious publications as theFinancial Times and the Wall Street Journal's Marketwatch.