Beyond Mechanical Markets: Asset Price Swings, Risk, and the Role of the State
Finalist for the 2011 Paul A. Samuelson Award, TIAA-CREFOne ofFinancial Times(FT.com) non-fiction favourites commended by Martin Wolf, FT chief economics commentator, for 2011"The debate over how to re-regulate [markets and banks] to avoid another financial crisis is urgent and it cannot conclude without resolving the problem that economics' most basic assumption is flawed. [Beyond Mechanical Marketsis one] of the most interesting contributions [to] find a new way to model markets."--John Authers,Financial Times"[Beyond Mechanical Markets] marshals a powerful argument that's bolstered by empirical reality: the eternal failures of mechanical forecasting; the sheer difficulty of beating the market with consistency; the unforeseeable ways that history unfolds. . . . [It's approach] seeks to reach beneficial outcomes through flexible, empirical response to [changing] conditions."--Robert Teitelman,Huffington Post"[A] groundbreaking look at how to tame asset booms and busts. . . . [O]f all the books I've read on the crisis that began in 2007, this one comes closest to laying foundation for a more pragmatic and genuinely useful school of economics."--James Pressley,Bloomberg News"[Beyond Mechanical Marketspoints to] a new international order [that] can save lives and stop currencies collapsing."--Anatole Kaletsky,The Times"[Beyond Mechanical Markets]'s criticisms are potent and its suggestions intriguing. It would be a pity if they were ignored by economists too busy working on their next theory of everything."--Keyur Patel,Financial World"The argument of this original and important book is that . . . economic models still used by central banks and others are seriously misleading and basically useless in dealing with a real world in which individuals are making imperfect and unpredictable interpretations of economic events. . . . The authors' practical recommendations for policy are interesting and they can hardly be accused of a lack of boldness."--Graham Bannock,Central Banking.com"In their provocative and fascinating new book . . . Frydman and Goldberg's achievement . . . as in their earlier work, is to enlarge the economist's toolkit and to show that there is something useful to be said about uncertainty after all."--Kevin D. Hoover,Journal of Economic Methodology