There will probably never be a last word on the Japanese financial catastrophe of the 1990s but Richard Koo's book may be the most significant analysis ever published. Agree or disagree, any analyst of the current United States situation must consider Koo's arguments. – Lawrence H. SummersRichard Koo does it again. By presenting a unique theory regarding the great Depression and Japan's recession of the last 15 years. Koo offers a new understanding of current problems in the U.S. and other economies. With many pearls of analytical wisdom, The Holy Grail of Macroeconomics: Lessons from Japan's great recession is a must–read for economist, policymakers and individual investors alike. – Nobuyuki IdeiRichard Koo's pioneering work on balance–sheet recession has been invaluable in understanding the difficulty faced by Japan's economy and monetary authorities during the past 15 years. In this book, he has shown that the U.S. Great Depression was also driven by the same balance sheet concerns of the private sector, indicating that this kid of recession can happen to any post–bubble economy. I sincerely hope that the lessons contained in this book are put to good use in fighting similar recessions elsewhere, including the U.S. subprime crisis. – Yasushi MienoThe Holy Grail of Macroeconomics presents a brilliant and original framework for understanding–and overcoming–a post–bubble economic crisis such as the one the world faces today. By discrediting the conventional view that monetary policy is effective in combating a post–bubble recession, Richard Koo has made an invaluable contribution to economic theory and at just the right time. Only fiscal stimulus on a very large scale can prevent a severe global slump in the years ahead. This is an important book. It should be required reading for economic policy makers all around the world. – Richard Duncan