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How markets fail

Dec 28, 2009

Utopian economics – thinking that is blind to how real people act and denies ways in which the free market can sometimes produce disastrous consequences – is on the rise. John Cassidy's new book, "How Markets Fail: The Logic of Economic Calamities," looks at this phenomenon and other reasons why sometimes markets just don't work. Credit crunches, real estate crashes, stock market bubbles – why do they happen, how do they happen, and what can we learn from them?

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