A Good Read - The Holy Grail of Macroeconomics ; Lessons from Japan's Great Recession

A book I have been reading recently is a good example of how conventional wisdom can be challenged. The auther Richard Koo puts forward a very compelling arguement based on his observations of corporate Japan, about how corporate psychology changes in the aftermath of a bubble bursting. In essence one of the major assumptions of macroeconomics, that of profit maximization by the private sector is challenged. Evidence seems to suggest that they turn to debt minimization as opposed to profit maximization. Definitely gives the reader plenty to consider, and if anything is a potentially great example of behavioural finance. Here is the amazon link for those that might be interested: http://www.amazon.co.uk/Holy-Grail-Macroeconomics-Lessons-Recession/dp/0470823879/ref=sr_1_1?ie=UTF8&s=books&qid=1233259091&sr=8-1

If you do read it let me know what you think in the comments section.

An AUDNZD update should be with you shortly!