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      • Annual Conference
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      • Rybczynski Prize
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Reading Room
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Book reviews

Can financial markets be controlled?

Reviewer: Kitty Ussher, Managing Director, Tooley Street Research

The Global Financial Crisis overturned decades of received wisdomon how financial markets work, and how best to keep them in check.Since then a wave of reform and re–regulation has crashed overbanks and markets. Financial firms are regulated as never before.

But have these measures been successful, and do they go farenough? In this smart new polemic, former central banker andfinancial regulator, Howard Davies, responds with a resounding no . The problems at the heart of the financial crisis remain. There is still no effective co–ordination of internationalmonetary policy. The financial sector is still too big and,far from protecting the economy and the tax payer, recentgovernment legislation is exposing both to even greater risk.

Fortune Tellers: The Story of America’s First Economic Forecasters

Reviewer: Ian Harwood, Independent Consultant

The period leading up to the Great Depression witnessed the rise of the economic forecasters, pioneers who sought to use the tools of science to predict the future, with the aim of profiting from their forecasts. This book chronicles the lives and careers of the men who defined this first wave of economic fortune tellers, men such as Roger Babson, Irving Fisher, John Moody, C. J. Bullock, and Warren Persons. They competed to sell their distinctive methods of prediction to investors and businesses, and thrived in the boom years that followed World War I. Yet, almost to a man, they failed to predict the devastating crash of 1929.

Walter Friedman paints vivid portraits of entrepreneurs who shared a belief that the rational world of numbers and reason could tame–or at least foresee–the irrational gyrations of the market. Despite their failures, this first generation of economic forecasters helped to make the prediction of economic trends a central economic activity, and shed light on the mechanics of financial markets by providing a range of statistics and information about individual firms. They also raised questions that are still relevant today. What is science and what is merely guesswork in forecasting? What motivates people to buy forecasts? Does the act of forecasting set in motion unforeseen events that can counteract the forecast made?

Masterful and compelling, Fortune Tellers highlights the risk and uncertainty that are inherent to capitalism itself.

The Shifts and the Shocks

What we’ve learned - and have still to learn - from the financial crisis

Reviewer: Mark Cleary, Kinetic Economics

Chief Economics Commentator of the Financial Times Martin Wolf gives an insightful and timely analysis of why the financial crisis occurred, and of the radical reforms needed if we are to avoid a future repeat.

How Good Can We Be

Ending The Mercenary Society And Building A Great Country

Reviewer: Christine Shields, Shields Economics

Britain is beset by a crisis of purpose. For a generation we have been told the route to universal well-being is to abandon the expense of justice and equity and so allow the judgments of the market to go unobstructed. What has been created is not an innovative, productive economy but instead a capitalism that extracts value rather than creates it, massive inequality, shrinking opportunity and a society organised to benefit the top 1%. The capacity to create new jobs and start-ups should not disguise that in the main the new world is one of throw away people working in throw away companies. The British are at a loss.

British Financial Crises since 1825

Reviewer: Bridget Rosewell

This book provides a history of British financial crises since the Napoleonic wars. Interest in crises lapsed during the generally benign financial conditions which followed the Second Word War, but the study of banking markets and financial crises has returned to centre stage following the credit crunch of 2007-8 and the subsequent Eurozone crisis.

Climate Shock: The Economic Consequences of a Hotter Planet

Reviewer: David Fell, Director, Brook Lyndhurst

In Climate Shock, Gernot Wagner and Martin Weitzman explore in lively, clear terms the likely repercussions of a hotter planet, drawing on and expanding from work previously unavailable to general audiences

The Rise of the Reluctant Innovator

Reviewer: Adrian Woods, Eurekazone

The Rise of the Reluctant Innovator" provides a welcome challenge to conventional wisdom in social entrepreneurship. It highlights the personal stories of ten social innovators from around the world.

The Great Depression of the 1930s

Lessons for today

Reviewer: Bill Allen

This edited collection provides an authoritative introduction to the Great Depression as it affected the advanced countries in the 1930s

The Locust and the Bee

Predators and Creators in Capitalism’s Future

Reviewer: Rebecca Harding, Delta Economics

Geoff Mulgan argues in this compelling, imaginative, and important book, that the economic crisis also presents a historic opportunity to choose a radically different future for capitalism, one that maximizes its creative power and minimizes its destructive force.

Globalization and Development

Why East Asia Surged Ahead and Latin America Fell Behind

Reviewer: Mina Toksoz, Emerging Market and Country Risk Consultant

Why has there has been such a pronounced divergence in the economic fortune of developing countries? Comparing the experience of East Asia and Latin America since the mid-1970s, Elson identifies the key internal factors common to each region which have allowed East Asia to take advantage of the trade, financial, and technological impact of a more globalized economy to support its development, while Latin America has not.

Wrong

Nine economic policy disasters and what we can learn from them

Reviewer: James Howatt, Capital Economics

In recent years, the world has been rocked by major economic crises. In Wrong, economist Richard Grossman addresses why these came about, shining a light on the poor thinking behind nine of the worst economic policy mistakes of the past 200 years, missteps whose outcomes ranged from appalling to tragic.

The Dollar Trap

How the U.S. Dollar Tightened Its Grip on Global Finance

Reviewer: Ian Harwood, Redburn

Looks at how the American dollar came to be of central importance in the world economy, and why it will continue to be so for the foreseeable future, due to a firmly established, dollar-centric international finance system.

The Road To Recovery

How and Why Economic Policy Must Change

Reviewer: Mark Cleary, Kinetic Economics

Providing practical guidance on reducing government, household and business debt, a well-respected economist stresses the importance of revising the neoclassical consensus governing global-economic decision-making to avoid the next financial collapse.

Rediscovering Growth

After the Crisis

Reviewer: David Smith, Economics Editor, Sunday Times

Andrew Sentance rightly identifies a number of key lessons for policymakers today as they seek to deliver a balanced and sustainable growth path going forward.

Double Entry

How the Merchants of Venice created Modern Finance

Reviewer: Rosemary Connell

Describes the history of accounting and double-entry bookkeeping from Mesopotamia to the Renaissance to modern finance and explains how a system developed that could work across all trades and nations.

Investing for Prosperity

A Manifesto for Growth

Reviewer: Vicky Pryce

What institutions and policies are needed to sustain UK economic growth in the dynamic world economy of the twenty-first century?

GDP: A brief but affectionate history

Reviewer: Bill Allen

Looks at the history of the complex Gross Domestic Product statistic, from its precursors to its use today, giving insight into what it measures, how it has changed, and what its strengths and weaknesses are.

First Principles

Five Keys to Restoring America’s Prosperity

Reviewer: Stephen Hannah, Lecturer in Economics, NYU in London

This is a pre-election, pro-Republican polemic with a glowing recommendation from Congressman Ryan. So you should not be surprised by the content and its tone. However, you may well be disappointed, even saddened, by the argument.

The New Tycoons

Inside the Trillion Dollar Private Equity Industry that Owns Everything

Reviewer: Nooman Haque

Taking readers behind the scenes of private equity firms and into the secret worlds of founders Henry Kravis, Steve Schwarzman and others, this revealing book examines one of the most important trillion-dollar corners of the global economy that has transformed the industry.

Affluence & Influence

Reviewer: David Fell, Director, Brook Lyndhurst

Given the manifest political, social and environmental difficulties with which the world is now grappling, in large part as a result of the failure of a very particular economic ideology, Robinson's entreaty is surely now more important than ever.

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Articles reflect the authors’ views which are not necessarily shared by the Society or the Editor. The Editor welcomes comments, ideas and articles on a wide range of applied economics topics and related issues of more general interest.

For Books and Reviews contact:
Ian Harwood
Book Reviews Editor, The Society of Professional Economists
harwoodfive@btinternet.com

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