Book review: The Little Book of Economics (Greg Ip)

I've reviewed a lot of popular economics books on this blog. I read them because they give me ideas that I can use in my teaching. Popular economics books vary a lot in quality, but those that are among the best tend to give me lots of teaching material and ideas. One exception is likely to be The Little Book of Economics, by Greg Ip.

I say that this book is an exception, not because the book is not good, but because it is very much focused on macroeconomics, which I don't teach! Given that macroeconomics is what most non-economists have in mind when they think about economics, that is not necessarily a bad thing in a popular economics book. Ip explains that:

I wrote The Little Book of Economics to provide non-economists with a practical, plain-language guide to the concepts they encounter in their daily lives, whether as students, business managers, or concerned citizens, from growth, unemployment, and inflation to deficits, globalization, and the Federal Reserve.

I think Ip mostly succeeds in this, and a lot of people would gain a lot from reading this book. Ip provides clear-eyed explanations of everything from business cycles, to monetary policy, fiscal policy, trade, and exchange rates. Having said that, the book is very US-centric, and a lot of the specific policy and regulatory detail is not applicable to other countries. The book is also getting quite dated now - the 'revised and updated' edition that I read was published in 2013.

Nevertheless, the core ideas of macroeconomics haven't changed, and that is where this book does its best work. And Ip makes it quite relatable as well. Consider this passage on tracking the status of the economy:

On a coast-to-coast flight you can relax with a drink and watch your progress on the video monitor in front of you, up to the minute you descend into your destination city. Wouldn't it be nice if we could do the same with the economy: Flip on a screen and know instantly where the economy is, how fast it's growing, and whether a recession lies ahead.

Unfortunately, when you clamber into the economy's cockpit you discover erratic and imprecise instruments, a filthy windshield, and outdated, faded maps.

I really enjoyed reading this book. Although it is now out of print, it doesn't seem difficult to find online. If you're interested in learning a bit more about macroeconomics, without all of the theory and models getting in the way, this book is a good place to start. And at 255 pages (which are short - it is a little book of economics, after all), it is quick and easy read.