“The Undercover Economist Strikes Back – How to Run, or Ruin an Economy”

“The Undercover Economist Strikes Back – How to Run, or Ruin an Economy”,  di Tim Harford, Riverhead Books,  ISBN: 978-1- 59463-140-5.

A pragmatic essay full of humour and good sense that explains some of the basic mechanisms of macroeconomic theory in simple terms. Thanks to easy and curious examples the author leads us to discover the mysteries of monetary creation and circulation, describes the role of the monetary authorities and governments and the tools available to them to regulate and stimulate economy and fight unemployment. Not least, he explains the importance of “responsibility” and “trust” with the management of market’s “Animal Spirits”.

A part is devoted to illustrate the meaning, the use and limitations of key economic indicators such as GDP and to assess the significance and relevance of alternative indexes.
In the background, the author  illustrates the dichotomy that arises between the Keynesian and Neoclassical theories. Very wisely, Harford avoids being dogmatic and follows an intermediate position stressing that both approaches have limits and solutions according to the real situations to deal with.

A curious and instructive book for beginners and enlightening for the self-styled "experts".