"A guide to understanding ′the dismal science′ and how economic concepts and institutions affect our daily lives" ( The Economist , December 2010) "...a must read in economic literacy." ( USA Today , November 29, 2010) "Finally, an economics book that is neither dull nor inscrutable and that won′t put you to sleep. Greg Ip gives us a lucid and entertaining understanding of ′the dismal science′ and reveals how economic concepts and institutions affect our daily lives. This little gem can turn all of us into sophisticated and educated citizens." — Burton G. Malkiel , Professor of Economics, Princeton University; author of A Random Walk Down Wall Street and The Elements of Investing "Greg Ip is one of the world′s best economic journalists. The Little Book of Economics will teach you much more than a little about the forces that shape all of our lives." — N. Gregory Mankiw , Professor of Economics, Harvard University; author of Principles of Economics "Here′s the perfect way to understand the economy without breaking a sweat. Clearly written and easy to understand, The Little Book of Economics guides you through what you need to know. Ip′s bright light illuminates places previously darkened by insider jargon and arcane formulae." — Robert B. Reich , Professor of Public Policy, University of California, Berkeley; former U.S. Secretary of Labor "The book is an excellent introduction to basic economic concepts and ideas explained in clear and thoughtful ways. A must read in economic literacy." " — Nouriel Roubini , Professor of Economics, New York University; Co–founder and Chairman of Roubini Global Economics "Greg Ip has the rare talent of making even the toughest topics easy to understand. In The Little of Book of Economics , he tells you what you need to know with superb clarity and memorable examples. I recommend this book to anyone who wants a clear explanation of how the forces of economics shape the world." — Michael J. Mauboussin , Chief Investment Strategist, Legg Mason Capital Management; Author of Think Twice
From the Inside Flap
After the global financial panic and recession of 2007–2009, you don′t have to be president or a hedge fund manager to know that "It′s the economy, stupid." Yet while the economy dominates the headlines, how it works and who influences it remain a mystery to most people. In The Little Book of Economics , Greg Ip, an award–winning journalist renowned for making complex economics easy to understand, walks you through how the economy really works. You′ll learn: How psychology and the Federal Reserve drive business cycles How a financial crisis can transform a recession into a depression The surprising effects of fertility rates, lawyers, and ideas on economic growth Whether the United States faces a lost decade like Japan did in the 1990s The causes of inflation, how it destabilizes society, and why deflation is even worse How government debt can sometimes help end a recession but, other times, bring on disaster—and how to tell the difference The symptoms of financial crises and why they often occur in election years What goes on inside the Federal Reserve, what it does when interest rates are zero, and why its power to print money has made it the world′s financial fireman You can′t understand the American economy without recognizing the growing influence of the rest of the world. So The Little Book of Economics digs into globalization, how it made America′s mortgage crisis possible, how it′s exploited by China to spur growth, and how it makes the United States richer even as it widens the gap between winners and losers. One side effect of the deepest economic downturn since the Great Depression is that it has ignited a fresh desire among citizens and investors to better understand the economy. The Little Book of Economics is an accessible, engaging, and entertaining guide to all of the wonderful and wicked ways in which the economy functions and what it all means to you.