Latest Book

The Economics
of the
Stock Market.

Andrew Smithers

The current consensus model for the economy is invalid, being based on aprioristic assumptions which are shown to be invalid when tested against the data. It assumes that managements and shareholders seek to maximise the present value of their companies’ net worth. In fact they respond to the stock market’s assessment of their value.

By basing economics on actual behaviour, rather than on that usually assumed by economists, the Stock Market Model differs sharply from the current consensus. By including finance, it avoids a major weakness in current theory and, being robust when tested against the data, it should be preferred to it.


Print length: 224 pages
Publisher: OUP Oxford
Publication date: 22 Mar. 2022

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About the Author

Andrew Smithers

Andrew is the author of multiple books on financial economics including “Valuing Wall Street”, “Productivity and the Bonus Culture” and “The Economics of the Stock Market”. He founded the economics consultancy Smithers & Co.