Overview

"The current consensus economic model, the neoclassical synthesis, depends on aprioristic assumptions that are shown to be invalid when tested against the data and fails to include finance. Economic policy based on this consensus has led to the financial crisis of 2008, the ""Great Recession"" that followed, and the slow subsequent rate of growth. In The Economics of the Stock Market, Andrew Smithers proposes a model that is robust when tested, and by including the impact of the stock market on the economy, overcomes both these defects. The faults of the current consensus model are shown to result typically from an unscientific methodology in which assumptions are held to be valid despite their incompatibility with data evidence. Smithers demonstrates examples of these faults: the assumption that leverage does not affect the value of produced capital assets; the assumption that short-term and long-term interest rates, and the cost of equity capital, are codetermined; and the assumption that the decisions of corporate managements aim to maximize the present value of corporate assets rather than the value determined by the stock market. The Economics of the Stock Market proposes a model that includes and explains the stationarity of real returns on equity, based on the interaction of the differing utility preferences of the managers of companies and the owners of financial capital."

Full Product Details

9798212717922

Table of Contents

Reviews

"""In his new book [Smithers] ostensibly focuses on the stock market, but the treatment is wide ranging. The book sets out to challenge a number of assumptions and results in neoclassical models."" -- ""Sunil Krishnan, Society of Professional Economists"" ""Smithers was one of the few economists to warn about the internet bubble and the dangers posed by the ensuing global credit boom. His current concerns shouldn't be dismissed lightly."" -- ""Reuters New Service"""

Author Information

Andrew Smithers is founder and director of the economic consultancy Smithers & Co. He is the author of The Road to Recovery: How and Why Economic Policy Must Change and Productivity and the Bonus Culture. Dennis Kleinman has been narrating audiobooks since 2013 and has at least forty titles to his credit. His career began with a biography of a British general, Sir David Fraser, and then transitioned into a series of period romance audiobooks, which opened up his creative approaches and choices to the characters that he brought to life. His body of work includes drama and mysteries, coupled with fan fiction and adventure. Adding to his resume is a three-part audiobook series covering espionage across Eastern Europe, in the Birth of an Assassin series, as well as the in-depth exploration of a family's heritage in Out of The Shoebox. Dennis worked with Douglass Davies on his novel Steinburg-a work about international political intrigue, which allowed Dennis the artistic freedom to explore his own European origins and early family history. Working with Ed Renehan of New Street Nautical Audio, Dennis has narrated half a dozen nautical themed audiobooks, including Desperate Voyage, the account of Donald Crowhurst's attempt to sail in a round the world yacht race in 1968. Dennis has worked on South African themed works that include The Lion Seeker, about early Jewish settlement and emigration to South Africa. He narrated and brought many characters to life in The Zebra Affaire, set in 1976 apartheid South Africa. Dennis adopts the various South African accents in an authentic, meaningful, and sensitive way, allowing his own South African roots to flow through the narration. Dennis was born in Cape Town, South Africa, and emigrated to the United States in 1980 after completing his Bachelor of Arts degree at the University of Cape Town. He lives with his family in Los Angeles.

Tab Content 6

Customer Reviews

Recent Reviews

Countries Available