The Little Book of Economics: How the Economy Works in the Real World

Praise for THE LITTLE BOOK OF ECONOMICS
"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 One positive side-effect of the recent financial market meltdown that toppled giant, century-old institutions and cost millions their jobs is that it created a strong desire among many Americans to better understand how the U.S. economy functions. In The Little Book of Economics, Greg, Ip, one of the country's most recognized and respected economics journalists, walks readers through how the economy really works.
Written for the inquisitive layman who doesn't want to plow through academic jargon and Greek letters or pore over charts and tables, The Little Book of Economics offers indispensible insight into how the American economy works - or, doesn't. With engaging and accessible prose, the book
Provides a comprehensive understanding of each aspect of our economy from inflation and unemployment to international trade and finance
Serves as an insider's guide to the people and institutions that control America's economy such as the Federal Reserve and the federal budget
Explains the roots of America's current economic crisis and the risks the country faces in its aftermath, such as stratospheric government debt, while offering advice on overcoming these threats
Walks readers through the basic concepts and terminology they need to understand economic news
Punctures myths and political spin from both the left and the right with candid and often surprising insight
A must read for anyone who wants a better grasp of the economy without taking a course in economics , The Little Book of Economics is a unique and engaging look at how the economy works in all its wonderful and treacherous ways. 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.

Greg Ip is the U.S. Economics Editor for the Economist magazine, based in Washington, D.C. His career spans two decades of financial and economic journalism, including eleven years at the Wall Street Journal in New York and Washington. Before that, he wrote for the Financial Post and the Globe and Mail in Canada. He appears frequently on television and radio, including National Public Radio., PBS, CNN, CNBC, and MSNBC. He has won or shared in several prizes for reporting, and was part of the Wall Street Journal team that received the Pulitzer Prize in 2003 for breaking news reporting. Greg graduated from Carleton University in Ottawa, Canada, with a degree in economics and journalism. He lives in Bethesda, Maryland.