Economics: Making Sense of the Modern Economy. Second Edition

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.

Simon Cox is The Economist's economics correspondent. He contributed to chapter nine. He is also the editor of this book.

Contributors
Brian Barry is The Economist's business correspondent based in Chicago. He contributed articles to chapters five and nine.

Simon Cox is The Economist's economics correspondent. He contributed to chapter nine. He is also the editor of this book.

Clive Crook was deputy editor of The Economist. He wrote chapters one and eight, and contributed to chapter nine.

Robert Guest was Africa editor of The Economist and is now the paper's Washington correspondent. He contributed to chapter nine.

Patrick Lane is the finance editor of The Economist. He contributed to chapter nine.

Marc Levinson was finance editor of The Economist. He wrote chapter six.

Zanny Minton-Beddoes is Washington economics editor of The Economist. She wrote chapter three, and contributed to chapter nine.

David Shirreff is The Economist's finance and business correspondent based in Frankfurt. He contributed to chapter five.

John Smutniak was The Economist's economics correspondent. He contributed to chapter nine.

Paul Wallace is The Economist's UK economics correspondent. He contributed to chapter nine.

Pam Woodall is economics editor of The Economist. She wrote chapters two and four. She also contributed to chapters seven, five and nine.