Monday, September 10, 2007

Book Review: The Origin of Wealth

Eric Beinhocker's critical review of traditional economic theory and his explanation of "complexity economics" was a riveting read.

Beinhocker recounts the history of the development of tradtional economic theory and explains in considerable detail why traditional economic theory does a poor job of both describing and predicting real world events. In the process of describing the beginings of a new approach (dubbed complexity economics) which draws heavily on evolutionary theory Beinhocker draws a number of conclusions regarding the process by which economic wealth is created. A number of those conclusions have implications for wealth management and financial planning (as well as a number of other issues).

One of the more thought provoking books on financial matters that I have read for some time. Highly recommended.

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