Business Cycles and Equilibrium, Updated Edition (PDF)

An updated look at what Fischer Black's ideas on business cycles
and equilibrium mean today

Throughout his career, Fischer Black described a view of
business fluctuations based on the idea that a well-developed
economy will be continually in equilibrium. In the essays that
constitute this book, which is one of only two books Black ever
wrote, he explores this idea thoroughly and reaches some surprising
conclusions.

With the newfound popularity of quantitative finance and risk
management, the work of Fischer Black has garnered much attention.
Business Cycles and Equilibrium-with its theory that
economic and financial markets are in a continual equilibrium-is
one of his books that still rings true today, given the current
economic crisis. This Updated Edition clearly presents
Black's classic theory on business cycles and the concept of
equilibrium, and contains a new introduction by the person who
knows Black best: Perry Mehrling, author of Fischer Black and
the Revolutionary Idea of Finance (Wiley). Mehrling goes inside
Black's life to uncover what was occurring during the time Black
wrote Business Cycles and Equilibrium, while also shedding
light on what Black would make of today's financial and economic
meltdown and how he would best advise to move forward.

The essays within this book reach some interesting conclusions
concerning the role of equilibrium in a developed economy

* Warns about the use and abuse of modeling

* Explains the risky business of risk in a straightforward and
accessible style

* Contains chapters dedicated to "the effects of uncontrolled
banking," "the trouble with econometric models," and "the effects
of noise on investing"

* Includes commentary on Black's life and work at the time
Business Cycles and Equilibrium was written as well as
insight as to what Black would make of the current financial
meltdown

Engaging and informative, the Updated Edition of
Business Cycles and Equilibrium will give you a better
understanding of what is really going on during these uncertain and
volatile financial times.