School of Management adjunct professor David De Rosa issued a stern warning against government intervention in financial markets with a new book published yesterday.

“In Defense of Free Capital Markets: The Case Against a New International Financial Architecture” analyzes the international financial crises of the past decade, including those of Japan, Mexico and Southeast Asia. The book concludes that government intervention, on the whole, has exacerbated the crises.

“Crisis never arrives without having first received a hand-delivered invitation from domestic policy makers,” De Rosa said.

According to the book, many of the countries that suffered financial problems had dangerous domestic financial policies in place before their economies descended into crisis.

The question of when and where to intervene remains a controversial issue however, and De Rosa may find a host of critics once his book begins circulation.

“When a house is burning, to put the fire out you [might need intervention],” economics professor George Hall said.

Arguments for intervention include the need for international financial bodies such as the International Monetary Fund to offer last-minute bailouts and for central banks to protect currencies from instability.

In addition to being an adjunct professor at SOM, De Rosa is president of De Rosa Research and Trading and has accumulated over 20 years of experience in international capital markets. SOM Dean Jeffrey Garten said the type of experience De Rosa brings to the school fits the general trend of what differentiates business school scholars from those found in economics departments.

“I think that in general the research and the teaching at a business school is more applied to real-world situations,” Garten said. “The problems that they look at are less theoretical.”

But both De Rosa and Garten said it is not likely that De Rosa’s particular background will tinge how his book is received.

“The debate about the shape of the financial system is coming out of all kinds of locations,” Garten said. “There are as many professors in business schools who favor a more substantial level of regulation as there are for more free-market orientation.”