Friday, July 6, 2007
Friday culture for this week is Capital Ideas Evolving by Peter Bernstein. In his seminal 1992 book, Capital Ideas, Peter Bernstein gave a thoughtful and thorough history of the academic history of finance. In it he detailed the struggles of the founders of modern finance, Harry Markowitz, Bill Sharp, Myron Scholes, et al., to persuade Wall Street to adopt their newly-discovered capital market theories. In this new book, Bernstein is back defending these theories against recent attacks by behaviorists and others who have decried their functionality. Markowitz particularly focuses on the widespread adoption of his heroes' ideas, particualrly the rise of portfolio theory and the evidence for efficient markets. In the words of the Economist, "Mr Bernstein has yet again produced a book that is insightful and thought-provoking." Enjoy your weekend!