By John Komlos
The 2008 financial crisis, the rise of Trumpism and the other populist movements which have followed in their wake have grown out of the frustrations of those hurt by the economic policies advocated by conventional economists for generations. Despite this, textbooks continue to praise conventional policies such as deregulation and hyperglobalization.
Foundations of Real-World Economics is a textbook that demonstrates how misleading it can be to apply oversimplified models of perfect competition to the real world. The math works well on college blackboards but not so well on the Main Streets of America. This volume explores the realities of oligopolies, the real impact of the minimum wage, the double-edged sword of free trade, and other ways in which powerful institutions cause distortions in the mainstream models. Bringing together the work of key scholars, such as Kahneman, Minsky, and Schumpeter, this book demonstrates how we should take into account the inefficiencies that arise due to asymmetric information, mental biases, unequal distribution of wealth and power, and the manipulation of demand.
Foundations of Real-World Economics offers students a valuable introductory text with insights into the workings of real markets, not just imaginary ones formulated by blackboard economists. A must-have for students studying the principles of economics as well as micro- and macroeconomics, this textbook redresses the existing imbalance in economic teaching. Instead of clinging to an ideology that only enriched the 1%, Komlos sketches the outline of a capitalism with a human face, an economy in which people live contented lives with dignity instead of focusing on GNP.
Table of Contents of Foundations of Real-World Economics
- Welcome to Real-World Economics
- Markets are Neither Omniscient nor Omnipotent
- The Nature of Demand
- Homo Oeconomicus is Extinct: The Foundations of Behavioral Economics
- Taste Makers and Consumption
- Firms and Imperfect Competition
- Returns to the Factors of Production
- The Case for Oversight, Regulation, and Control of Markets
- Microeconomic Applications on and off the Blackboard
- What Is Macroeconomics?
- Macroeconomics Part II
- Macroeconomics Part III
- International Trade: Open Economy Macroeconomics
- The Financial Crisis of 2008
- Conclusion: The Foundations of Real World Economics
About John Komlos
John Komlos is Professor Emeritus of Economics and of Economic History at the University of Munich, Germany. He has also taught at universities such as Harvard, Duke, UNC-Chapel Hill, University of Vienna, and Vienna School of Economics and Business. In 2003 Komlos founded the field of Economics & Human Biology with the journal of the same name, and through his research he has come to realize the limitations of conventional economic theory and has been an ardent advocate of humanistic economics.