All of John’s books are available to purchase via this webpage. Alternatively, they are available via Amazon.
All of John’s books are available to purchase via this webpage. Alternatively, they are available via Amazon.
“Thanks for writing this book. Only [John Kay] could have done it. This is going to be a classic.”
Frank Partnoy, Professor of Law and Finance, University of San Diego School of Law and bestselling author of F.I.A.S.C.O. and WAIT
Other People’s Money: Finance: Masters of the Universe or Servants of the People?
For the US version visit Amazon US, or other bookstores.
We all depend on the finance sector. We need it to store our money, manage our payments, finance housing stock, restore infrastructure, fund retirement and support new business. But these roles comprise only a tiny sliver of the sector’s activity: the vast majority of lending is within the finance sector. So what is it all for? What is the purpose of this activity? And why is it so profitable?
Industry insider John Kay argues that the finance world’s perceived profitability is not the creation of new wealth, but the sector’s appropriation of wealth – of other people’s money. The financial sector, he shows, has grown too large, detached itself from ordinary business and everyday life, and has become an industry that mostly trades with itself, talks to itself, and judges itself by reference to standards which it has itself generated. And the outside world has itself adopted those standards, bailing out financial institutions that have failed all of us through greed and mismanagement.
We need finance, but today we have far too much of a good thing. In Other People’s Money, John Kay shows, in his inimitable style, what has gone wrong in the dark heart of the finance sector.
*** You can read the introductory chapter here. ***
“John Kay builds on a great philosophical tradition – stretching back through Charles Darwin and Adam Smith – that understands how remarkable things can be achieved without anybody understanding how or even intending them. He has taken this idea and applied it with style to modern conundrums from the physics behind Beckham’s goals to the mathematics behind Buffett’s riches. A great book.”
Matt Ridley, Author of Genome and Nature Via Nurture
“From Vietnam to Iraq, Sony to ICI, Chess to mountaineering, John Kay tells a fast-paced detective story as he searches for the surprising secret to success in politics, business and life. Kay is persuasive, rigorous, creative and wise. Brilliant.”
Tim Harford, Author of “The Undercover Economist” and “The Logic of Life”
“Read this book for pleasure, and indirectly – obliquely – you will gain invaluable insights into how successful decisions are made.”
Mervyn King, Governor of the Bank of England
“An ingenious riff about unintended consequences.”
“John Kay is an admirable debunker of myths and false beliefs –he can see substantial things others don’t. Read this book.”
Nassim N Taleb, Author of The Black Swan
Obliquity – Why our goals are best achieved indirectly – 2010
Obliquity is the principle that complex goals are best achieved indirectly. This book explains why the happiest people aren’t necessarily those who focus on happiness, and how the most successful cities aren’t planned (look at Paris versus Brasilia). And if a company announces shareholder return as its number one goal, perhaps we should beware: the most profit-orientated companies aren’t usually the most profitable.
Paradoxical as it sounds, if you want to go in one direction, the best route may involve going in another. Using dozens of intriguing examples, Obliquity explains how. The Panama Canal, for instance, follows the shortest crossing of America; and yet it starts by following a south-easterly direction. The shortest straight line running from east to west goes through Nicaragua, and this ‘direct’ route is much longer. The people who first found this route weren’t looking west, and they were looking for silver and gold – not oceans.
Charles Darwin weighed up scientifically the pros and cons of a happy marriage – but it was Emma Wedgwood who swept him off his feet. Some of the most surprising examples come from the world of business. At one time Boeing’s leaders would ‘eat, breathe, and sleep the world of aeronautics’. The company created the 747 and its fortunes soared. When in 1998 it shifted focus to shareholder return and return on investment the company, well, took a dive.
And John explains the ‘why?’ and the ‘how?’ Obliquity is necessary because we live in an world of uncertainty and complexity; the problems we encounter aren’t always clear – and we often can’t pinpoint what our goals are anyway; circumstances change; people change – and are infuriatingly hard to predict; and direct approaches are often arrogant and unimaginative (Did Le Corbusier really think people would ever feel at home in his ‘machines for living in’?) John shows how we can apply the principle of obliquity to our own lives (why ‘muddling through’ can sometimes be the answer).
In Su Doku the world is certain and static – and people act as if the world is too, taking the direct approach. But the challenges in our lives are not the same as those of Su Doku. So often it’s the oblique approach which turns up trumps. Today, we face unprecedented problems: environmental, political, economic, social – and personal. It’s time we thought obliquely.
You can order Obliquity in paperback now for £8 (incl. p&p to the UK and Europe).
“Obliquity is a characteristic John Kay production. It is a pleasure to read” Howard Davies, Financial Times
“How rare is it for an academic economist to write with such clarity, intelligence and courage. And, in these troubled, confusing times, how desperately we need other dismal scientists to follow John Kay’s shining example”
Liam Halligan, Spectator Business
Obliquity – US edition
The US edition of Obliquity is now available.
You can order Obliquity – US edition, in hardback now for £10 (incl. p&p to the UK and Europe).
“Not only is it a highly enjoyable read, but this is one of the most useful and original books on investment I have ever seen. I cannot recommend this book highly enough, both for seasoned investors seeking wisdom and for those at a much earlier stage.”
Chairman, UK Shareholders’ Association
“It will probably be the cheapest and most valuable investment IFAs can make this year, both for themselves and for their clients.”
The Long And The Short Of It – 2009
This book provides a guide to the complexities of modern finance. It describes the basics of investment and the sophisticated innovations of the modern financial system.
It explains how twice in the last decade – in the new economy bubble and the credit crunch – the follies of finance have threatened the stability of the world economy. It exemplifies an environment that is complex and sophisticated, but greedy, cynical and self-interested.
This book shows how to put your finances in the only hands you can confidently trust – your own.
Note: This product is delivered as a password protected PDF file ready to be uploaded to an e-book reader or viewed on your computer using standard software such as Adobe Acrobat Reader.
“A welcome antidote to one-dimensional reductionist accounts of the business world.”
“Kay is well on the way to turning himself into a European Michael Porter.”
The Hare and the Tortoise – 2006
Most business books are bland or dull, or both. This volume is neither: John combines insightful analysis with wit and verve. In this book, we meet heroes as diverse as Sun Tzu, Jacques Derrida, and Jack Welch: we study businesses as diverse as Honda Motors, the grandes marques of Champagne, and Jenners department store in Princes Street, Edinburgh; we learn why size doesn’t matter, why brakes are different from signals, how to value businesses, and why the author was wrong to tell students that Boeing’s position in the civil aircraft market was unassailable. In less than two hundred pages, John provides a lively introduction to business strategy and a guide to many of the key issues in business today.
“John Kay sounds like the archetypal polemicist, an economist with attitude, the dismal science’s answer to David Starkey. Wrong on all counts. Kay argues that Keynes was right when he wanted economists to be treated like dentists.”
Larry Elliott, The Guardian
“A lot more economists than you might think can write”, says Peter Dougherty, Princeton University’s Press’s economics editor. Mr Dougherty rates Paul Krugman and John Kay as the best today.”
Everlasting Light Bulbs – 2004
It was the best of times, it was the worst of times. Everlasting Light Bulbs is based on a collection of John’s columns for the Financial Times, written between 1996 and 2004. The period was characterised by the dawn of the new economy, fears of ‘irrational exuberance’, attacks on the legitimacy of capitalism and the greatest speculative bubble in world history that swept the ballgoers off the floor. However, at the time when this collection was put together, a new lot of hopefuls had emerged at the edges of the ballroom, waiting to launch once more to the ballroom floor.
In this book, John shares some of the insights and lessons of his articles during this remarkably turbulent time, and gives thought to how economics illuminates the world – from BT’s dress code to the deadweight loss of Christmas.
“John Kay provides a remarkable explanation of difficult ideas in simple and clear language, with many fascinating examples, for those with no training in the language of economists. He shows how markets really work – every-thing you wanted to know about economics but were afraid to ask.”
Governor of the Bank of England
“…Kay’s book is a landmark…”
The Work Foundation
“John Kay’s book explains some of the major economic topics of our time – indeed of all time – including the all-important question of the appropriate role of the state. Readers of this illuminating book will better understand
what has gone wrong with the market economy and what should be done about it”
Winner of the Nobel Prize for Economics
“… witty and scholarly.”
Chris Redman, Time Magazine
The Truth about Markets / Culture and Prosperity (US title, 2004) – 2003
Capitalism faltered at the end of the 1990s as corporations were rocked by fraud, the stock-market bubble burst and the American business model – unfettered self-interest, privatisation and low tax – faced a storm of protest. But what are the alternatives to the mantras of market fundamentalism?
In his ambitious and wide-ranging book, John unravels the truth about markets. He explains why market economies outperformed socialist or centrally directed ones, but also why the imposition of market institutions often fails. This search for the truth about markets takes him from the shores of Lake Zurich to the streets of Mumbai, through evolutionary psychology and moral philosophy, to the flower market at San Remo and Christies’ salesroom in New York. Through this wide range of material, John shows that market economies function because they are embedded in a social, political and cultural context, and cannot work otherwise.
“Why are some people and some countries rich, and others are poor? Why did centrally planned regimes fail in economic competition with market economies? How do decentralised market economies coordinate complex products and global distribution? How do economic systems handle risks? How do they deal with inequalities of information in markets for technologically sophisticated products? (…) What really determines our economic behaviour – how we work and what we consume? What should be the role of the government in a modern economy? These are questions with which this book is concerned.”
Visit the Truth About Markets Webpage for more information.
“Mr. Kay has a gift, rare among academic economists, for explaining how economics can be put to practical use…. The best of his essays apply microeconomic analysis to everyday questions in a lucid and entertaining way.”
The Business of Economics – 1996
John combines common sense and rigorous economic thinking in a number of essays on business and economic issues – the competitiveness of UK plc, the stakeholder economy, business strategy, and corporate personality. Kay’s overall purpose is to show that economics can and should be brought to the analysis of business problems. In doing so he distinguishes his approach from that of the forecasters and the formula-bound, and those on the other hand who suggest abandoning economics in our post-modern complex world.
“one of the most important ‘strategic thinking” books in years…I can think of no better way of preparing for an examination in business strategy”
“You must read … Foundations of Corporate Success. Kay is currently the best management theorist in Britain, bar none.”
Foundations of Corporate Success – 1993
How Business Strategies Add Value. What distinguishes the successful firm is the fundamental question in business strategy, and one the most senior managers consistently ask themselves. In Foundations of Corporate Success, John Kay argues that outstanding businesses derive their strength from a distinctive structure of relationships with employees, customers, and suppliers. He explains why continuity and stability in these relationships is essential for a flexible and co-operative response to change. This book has been hailed as a landmark in our understanding of business strategy and is widely used on courses throughout the world.
The British Tax System – (5th edition) 1990
How does PAYE work? What exactly is VAT? How does social security legislation or inflation affect the tax system? Why do so few companies pay corporation tax? John Kay and Mervyn King set out to answer these and other questions, and develop a long-term strategy for structural reform
This fifth edition of a very successful book is the most extensively revised so far. It also identifies areas in which the progress of tax reform in Britain is unsatisfactory and a principal concern of the book remains the description of a reform strategy, based on a personal expenditure tax and a cash-flow corporation tax.
Please visit the Amazon online store to purchase this book