Ideas. John Cassidy’s new book, How Markets Fail: The Logic of Economic Calamities is a call for reality based economics. This is a book of ideas, along the lines of Economics 201. Cassidy explains in plain language the ideas behind lots of economic theories, and how some dominant theories have come in and out of favor. I especially enjoyed his exploration of rational irrationality. For those readers who are looking for an understanding of the context in which the recent financial crisis occurred, there’s a viewpoint expressed here that shows the consequences of the expectation that markets are self-correcting. How Markets Fail is well written, and will provide every reader with some increased level of understanding.
Rating: Four-star (Highly Recommended)
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