When it first appeared in 2004, the first edition of "Recessions and Depressions: Understanding Business Cycles" offered readers an expertly guided tour through fundamental business cycle theories and the latest research on pivotal market failures. In the aftermath of the events of the 2008 economic crisis, Knoop offers an extensively updated new edition.

As before, the second edition offers clear explanations of classical and Keynesian economic theory and how each has moved in and out of favor from the early 20th century to the present. It then provides detailed studies of major...