Book Review: Complete Idiot's Guide to Economics

Complete Idiot's Guide to Economics by Tom Gorman.

I know. It's a Idiot's Guide. I don't normally read Idiot's Guide series; don't wanna be labeled an idiot.

However, this book is a great help in understanding the basic of economics without going into the technicalities and formulae.

Coverage includes:

• Law of demand and supply - how prices of goods and services are affected by these.
• GDP - What are the factors affecting the GDP of a nation? How is it the USA can have a large trade deficit, yet still is the largest world economy.
• Unemployment and inflation - What causes inflation, and why inflation is likely to happen when there is low unemployment.
• Trade and fiscal policies - The role of trade and budgeting at the national level. What are the implications of raising or lowering taxes. How is it that increase in government spending can be used to boost a sluggish economy.
• FED, monetary policies and interest rates - how these can have influences on the economy. Why the increase in interest rates can be used to fight inflation.

The facts are presented in very simplistics form with a lot of practical examples and case studies that helps elucidate the abstract theories of economics. After reading this book, I find that I can better understand the business news in the papers, and that helps to further understand more advanced economics. This is a highly recommended book for beginners who wishes to understand the basics of economics.