Friday, July 13, 2012

Book Review: Debunking Economics

Review: Debunking Economics - Revised and Expanded Edition: The Naked Emperor Dethroned?
Author: Steve Keen
Published Date: October 25, 2011

  As I mentioned in my review of The Myth of the Rational Market, I've never studied economics formally, so this book was simultaneously an introduction to, and debunking of  modern economics all in one shot.  Steve Keen sets out to explain the field to both economists and laymen without the use of equations, and he's successful in that to a moderate degree.  Sometimes when reading a two page description of an economic model, I did find myself wishing he'd just include the relevant equation so the mathematically inclined reader could digest the information a little faster.
  This was a terrific follow up to The Myth of the Rational Market since it tells a more in depth (and agenda-backed) story of a few of the big names introduced in Justin Fox's book.  It also takes on most of the economics concepts with which the average non-economist is familiar. For example showing how the inverse relationship between supply and demand is far from a "law", demonstrating the faulty logical leaps from single-variable to multi-variable modeling (also referred to as aggregate supply and demand). 
  This book is full of challenging ideas and I'll probably have to read it and review it several more times throughout my life before I'm able to really summarize the ideas contained competently.