"In this compendious review of the 'genius, limits and follies' of markets, Kay, an economist and Financial Times columnist, writes about almost every part of the globe [...] Kay's globetrotting allows him to include vignettes of Heidi from Zurich, Raoul from Mexico and Sicelo from KwaZulu-Natal to contrast inequalities of economic outcomes and rewards. His purpose in doing so is to demonstrate that 'there is no grand narrative, only little stories'. Economic rules are not absolute and economic models do not translate easily from one place to another, he argues [...] Although market economies in all parts of the world have generally produced greater prosperity than non-market ones, there is no particular market model that has proved itself better than the rest. [...] Not only is the American Business Model not supreme: it is not even an accurate description of the market in America. Unfettered capitalism is supposed to be driven entirely by self-interest, but even on Wall Street people need the approbation of friends, the trust of colleagues, the satisfaction of doing worthwhile tasks, the comfort of being part of social and institutional structures. Kay argues that 'capitalism works in practice only because it is humanised'. This leads him to the idea that a good market must be 'embedded' in an orderly, free society. [...] The Truth About Markets is written with wit and subtlety, its themes enlivened by a wide range of references and its chapters chopped into digestible bites. It is nevertheless a demanding read"

"John Kay’s latest book offers an absorbing romp through the history of economic thought in the 20th century. Kay attempts to explain the complex reality of a modern market system rather than resorting to simplistic theorizing about it. Gone are perfectly rational traders, perfectly competitive markets, incentive compatibilities, low transaction costs, informational symmetries, and no externalities. Kay highlights problems and problem solving as the ubiquitous and historical strata through which markets in the West evolved. [...] The breadth of the book is enlivening. Kay cuts a wide swath through economic history and the history of economic thought. The downside is that he jumps around without always tying the pieces together. The upside is an erudite exposition of modern economic concepts applied to business. [...] Kay attempts to construct a more plausible and self-reinforcing account of how capitalism really functions. This book will be of interest to far more than development economists. In fact, it is mainly geared to microeconomists who can profit from the breadth of new economic ideas repackaged to support a provocative thesis. The first part of the book is slow to develop, and the informal writing style is bothersome at times. One is not given a very clear roadmap of where things are heading. The last half of the book is pure joy as the pieces fit together. This book is highly recommended."