Top positive review
DIsproving one economic theory should lead to a better one
on 26 January 2016
Like his hero James Clerk Maxwell, the author presents complex ideas in the clearest possible language without "dumbing down". The result is an incisive analysis of the causes of financial crises and the competing theoretical frameworks used to describe them. Cooper uses many examples to demolish the Efficient Market Hypothesis and shows how Minsky's model of the economy as inherently cyclical fits the observed behaviour much better. To his credit he goes beyond analysis and makes positive recommendations for action, and avoids the simplistic proposals of "free market" extremists such as abolishing central banks or returning to the gold standard. Indeed, he clearly sets out the role and responsibilities of central banks, and explains precisely how they are failing in those responsibilities today.