New Principles of Economics Textbook

Flattr this!

Professor John Komlos has just released a new textbook on economics which breaks away from the mold of producing clones of Samuelson’s genre-defining opus. Its title is “What Every Economics Student Needs to Know and Doesn’t Get in the Usual Principles Text“. At a price of $26.55 via Amazon, it is priced to be an affordable supplement to a standard textbook. Given the failings of the discipline that were so vividly highlighted by the global financial crisis, this book is well worth considering as an alternative to the Neoclassical monoculture that dominates economic tuition today.

The following blurb is lifted from John’s website:

About the book

The recent financial crisis illustrated vividly the flaws of weakly regulated markets, yet textbooks remain unchanged, failing to convey the systematic limitations of free markets. This book redresses this imbalance in the tradition of G. Akerlof, R. Easterlin, J.K. Galbraith, H. Minsky, D. Kahneman, J.M. Keynes, P. Krugman, A. Sen, R. Shiller, H. Simon, J. Stiglitz, Th. Veblen, and the Institute of New Economic Thinking.

It does so by exploring important topics that are generally overlooked in introductory economics courses and by juxtaposing blackboard models of the economy with real-world empirical observations. Komlos argues convincingly that it is misleading to focus on models of perfect competition in a world where such markets have become an insignificant share of economic activity. Rather, even beginning students ought to be introduced to the workings of oligopolistic market structures with imperfect information and endemic underemployment. In such cases markets are no longer efficient and there is plenty of opportunities to enhance the quality of life of its participants. Komlos proposes a human centered economics that attains full employment and an equitable distribution of income striving above all toward a just economy.

Concepts covered in the book include often neglected topics such as:

  1. Behavioral economics
  2. Cognitive biases
  3. Regulatory capture
  4. Bounded rationality
  5. Dot-Com Bubble
  6. Sub-prime mortgage crisis
  7. the Great Recession
  8. Corporate compensation
  9. Basic needs
  10. Income inequality
  11. Opportunistic behavior
  12. Moral hazard
  13. Principal-Agent problem
  14. Asymmetric information
  15. Financial meltdown of 2008
  16. Capitalism with a human face
  17. Predatory lending
  18. Relative income
  19. Signaling
  20. Countervailing power
  21. Happiness economics
  22. Bailouts

About Steve Keen

I am Professor of Economics and Head of Economics, History and Politics at Kingston University London, and a long time critic of conventional economic thought. As well as attacking mainstream thought in Debunking Economics, I am also developing an alternative dynamic approach to economic modelling. The key issue I am tackling here is the prospect for a debt-deflation on the back of the enormous private debts accumulated globally, and our very low rate of inflation.
Bookmark the permalink.

2 Responses to New Principles of Economics Textbook

  1. Pingback: New Principles of Economics Textbook | The Mone...

  2. Steve Hummel says:

    Those are all good categories especially countervailing power. Let’s make sure it covers the asymmetric powers of Banks and the Banking system.

    No more glaring private monopoly on credit creation or on the restrictive hold on the reasons or purposes for which credit may be issued. Demand has historically been scarce and in a technologically advanced profit making economy this individual monetary scarcity, by the logics of both profit and innovation, has no rational option but to increase. Thus it is necessary to use the wonderfully accurate and facilitative tool of money….as an evolutionary means of making profit making economic systems…more democratic and functional.

Leave a Reply