The End of Theory: Financial Crises, the Failure of Economics, and the Sweep of Human Interaction

Description

An in-depth look at how to account for the human complexities at the heart of today's financial system Our economy may have recovered from the Great Recession--but not our economics. In The End of Theory, Richard Bookstaber discusses why the human condition and the radical uncertainty of our world renders the standard economic model--and the theor

Richard Bookstaber has overseen risk management at investment banks Morgan Stanley and Salomon Brothers, as well as major hedge funds such as Moore Capital and Bridgewater. He has also held positions at the U.S. Treasury, and is currently at the University of California. He is the author most recently of A Demon of Our Own Design (Wiley).

"Important and elegantly written."--Jason Zweig, Wall Street Journal "The End of Theory holds some important lessons for financial markets today... According to Bookstaber, it's time to stop tweaking a 150-year-old model that seems to be getting worse, not better, at predicting crises, and embrace something totally new. Finally, and perhaps most usefully, he challenges the economics profession itself, where too many experts still have way too much faith in their own mathematical infallibility."--Rana Faroohar, Financial Times "The analysis is top-notch, and anyone who wants to understand the workings of the financial system will benefit from reading this book."--The Economist