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 âIt's the economy, stupid.â 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:
âą How psychology and the Federal Reserve drive business cycles
âą How a financial crisis can transform a recession into a depression
âą The surprising effects of fertility rates, lawyers, and ideas on economic growth
âą Whether the United States faces a lost decade like Japan did in the 1990s
âą The causes of inflation, how it destabilizes society, and why deflation is even worse
âą How government debt can sometimes help end a recession but, other times, bring on disaster-and how to tell the difference
âą The symptoms of financial crises