The Economist: Economics : Making Sense of the Modern Economy

Written in the accessible, intelligent, jargon-free style for which The Economist is famous, this book is aimed at anyone – from students to presidents – who wants to make sense of the modern economy and grasp how economic theory works in practice. The laws of economics do not change from week to week. If you have ever wondered why America's trade deficit attracts so much fuss, why central bankers enjoy so much deference, whether stockbrokers earn their commissions, or why we cannot share unemployment by sharing work out more evenly, the articles in this book provide answers based on economic principles of lasting relevance. Part one of the book looks at globalisation. Part two track the fortunes of the world economy - America's recovery and its imbalances; China's rise; and the brighter signs for the Japanese and German economies after years of underachievement. Part three examines the ''capital'' in capitalism - what finance does for the economy; how money and credit are created, regulated and circulated; and capial flows across national borders. Part four explores how economics is applied and misapplied - what the market can achieve and how it can fail. A radically revised new edition of this highly readable, popular guide aimed at everyone from students to statesmen who want to make sense of the modern economy and grasp how economic theory works in practice. It starts with the basics: what economics is about; the sources of economic growth such as people and investment; the role of central banks and fiscal policy in setting the macroeconomic framework; and the economics of everything - microeconomics. From the underlying theory it moves to the specifics of the world economy: the developed world and the rise of emerging economies, the issues of global imbalances and the runaway world of finance; the recent'great'recession - why it happened, how it was dealt with, its effects, legacy and the way ahead. The closing part puts the usefulness and the failings of economics under the spotlight, and looks at the innovative approaches being developed to make what has been called the'dismal science'fit for the modern world. Making sense of the modern economy. Substantially revised edition of previously successful title that, with typical Economist style and clarity, provided expert analysis of different aspects of the modern economy. Subject areas covered include: * Globalisation * The power of the state in influencing economic life * The power of financial markets * The impact of information technology * Labour markets * Trade * Inflation and deflation * Reasons for booms and busts * The economics of environmentalism * Developing economies * Economic fallacies * The usefulness of economic theory--Publisher's blurb Preliminaries......Page 1 Contents......Page 5 Introduction......Page 8 1 The case for globalisation......Page 13 2 The phoney recovery......Page 65 3 America’s imbalances......Page 77 4 China’s rise......Page 97 5 The underachievers......Page 113 6 Finance......Page 145 7 Central banks......Page 183 8 Global capital......Page 207 9 The uses and abuses of economics......Page 245 Index......Page 314 Aimed at those in business and professions, and with a paperback edition aimed at students, this title provides an analysis of different aspects of the modern economy. It includes sections on: Globalisation; The phoney recovery and America's imbalances; China's rise; Underachievers; The arteries of capitalism; and Economic facts and fallacies Edited By Simon Cox. At Head Of Title: The Economist. Previous Ed.: 1999, 2003. Includes Bibliographical References And Index.