David Orrell. Writer and Mathematician
Economyths: How the Science of Complex Systems is Transforming Economic Thought
» Edmonton Journal top-ten bestseller
» Finalist: National Business Book Award (Canada)
Publishers: Icon (UK), Wiley (North America), Record (Brazil), China Machine Press (China), Hikmah (Indonesia), Kawadeshobo (Japan), Planet B (Korea)
A groundbreaking look at how the science of complex systems is changing economics.
Economics has for decades claimed that the economy is a rational, stable, efficient machine, governed by well-understood laws.
Mathematician David Orrell traces the history of this idea from its roots in ancient Greece to the financial centres of London and New York, shows how it is mistaken, and proposes new alternatives. Economyths explains how the economy is the result of complex and unpredictable processes; how risk models go astray; why the economy is not rational or fair; why financial crashes are less Black Swans than part of the landscape; and finally, how new ideas in mathematics, psychology, and environmentalism are helping to reinvent economics for the 21st century.
“When I saw this book I was rather excited, because I loved Freakonomics and I rather hoped this was going to be more of the same. It wasn't. It was so much more. This is without doubt the best book I've read this year, and probably one of the most important books I've ever read ... This ought to be a real game changer of a book. Read it.” Brian Clegg, author of Before the Big Bang: The Prehistory of Our Universe, writing at popularscience.co.uk
“A must read for understanding the roots of the financial crisis, the severe limitations of the field of economics and what needs to be done to improve our ability to avoid future crises.” Spyros Makridakis, author of Dance With Chance: Making Luck Work for You
“The author dissects ten fundamental misunderstandings ... He manages to convincingly explain the relevance of these myths and make them understandable, even for laymen, in a wider context.” Handelsblatt (Germany)
“Intellectually stimulating.” Toyo Keizai (Japan)
“Consistently interesting and enjoyable reading ... A wide audience including many non-economists could benefit from reading it.” International Journal of Social Economics
“His ten economic myths should be committed to memory.” Monthly Review
“I urge you all to read [this book]” New Straits Times (Malaysia)
“A wonderful book.” Chetan Parikh, director of Jeetay Investments Private Limited (India)
“Thought provoking ... elegantly written.” James Picerno, author of Dynamic Asset Allocation: Modern Portfolio Theory Updated for the Smart Investor, writing at Seeking Alpha
“Orrell takes on the efficient market hypothesis ... equilibrium theory ... problems of risk modelling ... and unsustainable assumptions about rationality, fairness, limitless growth, and so forth. His tone is engagingly curious, drawing on biology and psychology, and his historical view spans more than merely the past few decades. Finally Orrell recommends an interdisciplinary approach to a 'new economics', in which ethics and complexity theory might have a say.” Guardian (UK)
“I have found this book to be very humorous, the historical titbits are especially amusing and educational.” Leah Walker, 580 CFRA Radio Ottawa
“An excellent book.” Io Non Ci Casco Più (Italy)
“Analyses reliably and convincingly the claim of economics to quasi-scientific objectivity and mathematical accuracy and exposes as a sales ploy that which made economics the queen of the social sciences.” Norbert Häring, author of Economics 2.0
“Invoking history, physics, biology, climatology and his background in complex systems to debunk neoclassical economics, Orrell makes a plea for an unorthodox economics, one drawing on ethics and environmentalism as well as emerging areas of mathematics like non-linear dynamics and network theory.” Canadian Business magazine
“Entertaining, informative and highly recommended.” Millier Dickinson Blais newsletter
“A book that can help you appreciate economics in action, and also help make it less of a voodoo science.” The Hindu (India)
“One of the best economics books of the year.” Pressian.com (South Korea)
Blogs: Today's economy, Capital Ideas Online, Earnest and Jest, Now Appearing, Aid on the Edge of Chaos, Seeking Alpha, U of M SSA, RYviewpoint
Interviews: Business News Network, TheStreet.com, Lang and O'Leary Exchange on CBC TV, The Globe and Mail, National Post, Breakfast Television Toronto, CFRA Ottawa, BBC World Service, Sun Life Financial