Kim Gentes

If you are trying to learn about economics there are a few different approaches you can take. First, you can study the classic documents, such as "The Wealth of Nations" (Adam Smith), "The General Theory" (J M Keynes), "The Road to Serfdom" (Hayek), "the Communist Manifesto" (Marx) and a few other seminal texts to gain an understanding of how the modern economic stream of study progressed in the last 3 centuries perhaps right up to current works from Friedman and even Laffer. But that approach is arduous and frankly too technical for most people to care to enage with. The second route is to take a college series of courses, which may run through these same ideas in summary by using texts such as survey books like "The Making of Modern Economics" (Mark Skousen) or other general survey books. But this second route maybe not provide a balanced outlook of the differing perspectives, since professors and writers of individual texts are prone to present support for their own beliefs rather than give a neutral view.  The last route left for those of us who aren't trained economists is to read simpler books, written for the public.

In that vein, one of the best books I've come across is simply titled "50 Economic Ideas You Really Need To Know". Author Edmund Conway has written a cogent and actually cohesive book that is less disjointed than the title might imply. Beginning with Adam Smith's "invisible hand" doctrine, exploring supply and demand, the Malthusian trap and opportunity cost, Conway guides the reader quickly and clearly through fifty (yes 50!) of the key concepts in economics. After having read several other books (from many of the 3 different approaches I mention above) on economics I found this layman's guide to not only be remarkably accurate and well written but well organized.  Economics is often said to be a study of people and their uses of resources, including the decisions they make regarding those resources. Conway starts this book with a more pointed view saying -

Economics examines what drives human beings to do what they do, and looks at how they react when faced with difficulties or success.1

This turns out to be an excellent primer to understand how this book is approached and presented. Starting with the basic core of Smith's economic theory, the author moves from basic numerical balances (such as supply/demand) through philosophical ideas (such as communism, keynesianism, individualism) to measurements of economies (such as money, taxes, debt, unemployments) to finances and markets (such as stocks, bonds, credit markets etc) and finally to modern issues (such as creative destruction, global deficits, protectionism, technological revolutions).  Each of these are readable as separate items (great if you need to learn about money markets or pensions without wading through an entire book), but Conway has blended the topics so well that the text is built into an excellent progression if you have the time to sit down and read the short 200 page book in a sitting or two.

For now, this is the best layman's summary book on economics that I have found. If you want a crash course- this is it. It's clear, concise, and takes great many pains not to be a partisan supporter of whatever school the author might have an affinity for. In fact, most economics books bleed their prejudices so clearly it is often obvious whether the writer is a proponent of Keynesian, Austrian, Friedman or any of the other streams of economic theory. Here, the theories are all presented and none derided. The pros and cons are pointed out for each. For this alone, I consider this short layman's guide to be solid gold, and far better than 90% of the detailed economic survey books available (which almost always take philosophical sides).

If you are looking for a one-book-fits-all, short summary of economics to get through in a day or so-- look no further than "50 Economic Ideas..." I can't give this book any higher praise than my unequivocal recommendation!

Amazon Link: http://amzn.to/V8Dpy8

Review by Kim Gentes

1. Conway, Edmund (2009-09-03). 50 Economics Ideas You Really Need to Know (50 Ideas) (p. 3). Quercus. Kindle Edition.

Tracing the history of financial development seemed like a good idea at the time. But what I found most often (in books I perused before buying) was that most books focused on economics, whose cogent thinkers don't arrive on the scene until the 18th century. Then I found "The Ascent of Money", whose apt title keeps a sharp focus on the instruments of exchange rather than the philospohies of theories, political bents of champions, or minute formulae of econometrics.

"The Ascent of Money" begins with ancient times in Mesopotamia and accounts for us the tale of first ledger accounts that were made with clay markers- the first instance of bonafide money. Since those first signs of tokens of exchange, humans have invented ways of marking wealth with various devices. Without spending time on economy, Ferguson accelerates through history, reaching mideavil Europe in fairly short order.

His goal is clear- trace the uses and demands of how people, leaders and governments invented mechanisms for exchange, funded expansion, waged wars, invented industries and toppled kingdoms. All with the tool of money.  He explains the details of how various forms of exchange, from metals to paper to digital balances made their way into society.

The book is exceptional writing, with dizzying amounts of information, but all kept sharply in focus of the topic. Even as he explains M1, M2, M3, securities-backed derivatives or the failure of LTCM and more, the reader never feels left in the dark by a harried professor trying to overwhelm you with all their brilliant knowledge. Ferguson is obviously a brilliant scholar, but he doesn't lean on details to impress the student, he weaves a thoughtful narrative that calls out the minutia in appropriate amounts and at the appropriate times.  After reading several other books on the history of economics, it was wonderful to read a book that dealt with monetary development without being theory driven or school biased.

If you love history, you will love this book. I learned an exceptional amount about money in all its forms and enjoyed the writing the entire way through. An excellent book. I highly recommend it!

Amazon Book Link: http://amzn.to/RJMVaB

Review by Kim Gentes