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The Origin of Financial Crises

Central banks, credit bubbles and the efficient market fallacy

By George Cooper

Paperback £10.99 / $16.99
eBook £9.99 / $11.99
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The Origin of Financial Crises

Central banks, credit bubbles and the efficient market fallacy

By George Cooper

Jacket text

‘The Origin of Financial Crises’ provides a compelling analysis of the forces behind the recent economic crisis. In a series of disarmingly simple arguments George Cooper challenges the core principles of today’s economic orthodoxy, explaining why financial markets do not obey the efficient market principles but are instead inherently unstable and habitually crisis prone.

First published in the summer of 2008 in the midst of the crisis, the author accurately pinpointed the fundamental problems in policy and economic theory that led to the banking crisis. Now updated to reflect the massive upheavals since then and providing even more forthright opinions, the book is essential reading for anyone looking to find the root cause of our current financial situation.

The book describes the evolution of our modern monetary system, explaining along the way how financial instability emerged and why this instability required the development of central banking. Cooper makes the point that misguided faith in the power of free markets has led some central banks to neglect their core role of managing the financial system and instead caused them to pursue policies promoting a series of ever more violent boom-bust cycles. ‘The Origin of Financial Crises’ calls for a radical shift in central bank strategy, the abandonment of inflation targeting and a paradigm shift in our attitude to economic policy.

The reader will also learn about the fundamentals of inflation and discover what policy makers can learn from the designers of the Eurofighter jet and how an obscure paper on steam engines, written in 1868, shows us how to avoid repeating recent monetary policy mistakes.

Uniquely, ‘The Origin of Financial Crises’ presents tangible policy proposals aimed at helping break out of the seemingly endless procession of damaging boom-bust cycles.

About the author

George Cooper is the Chief Investment Officer of Equitile Investments Ltd, a London-based fund management company.

He has previously worked for JP Morgan, Goldman Sachs, Deutsche Bank and BlueCrest Capital.

George's first book, 'The Origin of Financial Crises', received critical acclaim for its clear explanation of the monetary policy errors leading up to the global financial crisis.

Reviews

“A must read…Cooper’s book is by far the most cogent and reasoned of the modern-day ‘credit excess’ school.”

– The Economist

“A well written book…Cooper’s most novel doctrine is that investors do not have to be irrational to generate bubbles.”

– Financial Times

“Awesomely lucid”

– Dominic Lawson, The Independent

Praise for hardback edition:

Media coverage

From bloomberg.com:
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From businessbooks.suite101.com:
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From investorschronicle.co.uk:

The most intellectually enriching analysis I have found- Alistair Blair, Investors Chronicle4th December 2008

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From newsweek.com:
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From independent.co.uk:

Awesomely lucid- Dominic Lawson, The Independent21st October 2008

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From telegraph.co.uk:
From Media Review:

George Cooper was invited back onto NewsTalk’s Breakfast Show10th October 2008

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From Media Review:

George Cooper participated in a BBC Radio 4 discussion panel9th October 2008

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From Media Review:

George Cooper was interviewed on NewsTalk’s Breakfast Show9th October 2008

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From thisislondon.co.uk:
From Media Review:

George Cooper was interviewed on radio station ABC Australia7th October 2008

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From news.bbc.co.uk:

George Cooper was interviewed on

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From Media Review:

George Cooper was interviewed in Folha de Sao Paulo and was on Jornalismo Radio Sao Paulo1st October 2008

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From bbc.co.uk:

George Cooper was interviewed on BBC Radio 4’s

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From economist.com:

A must-read- The Economist11th September 2008

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From ft.com:

a well-written book…Cooper’s most novel doctrine is that investors do not have to be irrational to generate bubbles.- Financial Times11th September 2008

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From Media Review:

George Cooper was interviewed on BBC Radio 4’s

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From abc.net.au:

The world financial crisis may be entering a new phase- George Cooper discusses the current state of world finances with Ticky Fullerton, Australian Broadcasting Corporation18 June 2010

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Contents

Praise for The Origin of Financial Crises
About the Author
Acknowledgements
Preface to the Paperback Edition
Preface to the Original Edition

1. Introduction
2. Efficient Markets and Central Banks?
3. Money, Banks and Central Banks
4. Stable and Unstable Markets
5. Deceiving the Diligent
6. On (Central Bank) Governors
7. Minsky Meets Mandelbrot
8. Beyond the Efficient Market Fallacy
9. Concluding Remarks

Appendices
- Postscript: Surely you're joking Mr Chairman!"
- 'On Governors' by J.C. Maxwell
- Recommended Reading

Index



Published: 30/06/2010
Edition: 1st
Pages: 240
Formats: paperback - ISBN 9781906659578
ebook - ISBN 9780857190376
Media enquiries

If you’d like to get in touch with the author for interview or comment, or you’d like a review copy of this book, please contact us at pr@harriman-house.com or call +44 (0)1730 233870.

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