Economics: Making Sense of the Modern Economy (Economist)

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9781846684593: Economics: Making Sense of the Modern Economy (Economist)

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.

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From the Back Cover:

Now in its third and radically revised edition, this highly readable, hugely popular guide to economics is aimed at everyone from students to statesmen who want to grasp how economic theory works in practice and make sense of the modern world.

Part one considers what economics is about. It starts with debates about basic economic ideas, then covers the sources of economic growth such as investments in equipment and in people's skills; the role of central banks and fiscal policy in managing the ups and downs of the economic cycle; and the insights that economics provides into a vast variety of things, ranging from credit card fees to prostitution.

Part two moves from the underlying theory to an overview of the world economy: the forces shaping the world economy, including the rise of emerging economies, 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 challenges before the global economy in the years ahead.

Part three puts the usefulness of economics under the spotlight. It looks at the criticisms of the "dismal science" by those who think it needs to change to regain its relevance, and also at the ways in which economics is changing through the use by economists of new tools and techniques—sometimes borrowed from other disciplines—to help them understand the way the world works today.

About the Author:

Saugato Datta, editor of this collection, is a specialist writer on economics for the Economist.

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