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Informationen zum Autor Kyla Scanlon Klappentext "An illustrated guide to the mad math and terrible terminology of economics, from one of the internet's favorite financial educators. The stuff you really need to know about how the economy works? It's pretty simple. Yes, even if you were bored to tears in economics class, or if you're cross-eyed from reading painfully convoluted--or straight-up misguided--financial commentary. In this particularly disorienting era, many have turned to a young economic analyst named Kyla Scanlon for answers. Now, Scanlon is writing a definitive, approachable guide to the key concepts and mechanics of economics and the most common myths and fallacies to steer clear of. Through her trademark blend of creative analogies, clever illustrations, refreshingly lucid language--and even quotes from poetry, literature, and philosophy--she answers questions such as: What is Fed cred, Fed flexing, and Fedspeak? Is our national debt really a threat? What is a 'mild' recession, exactly? What's really happening in the labor market, and how do we improve it for workers? At a time when experts overcomplicate simple things loudly, choosing to generate smoke rather than clearing the air, In This Economy? shows that understanding the markets--and the systems they operate in--is easier than you think. Whether you're worried about your mortgage rate, job security, bank account balance, or the health of the broader economy, this concise and witty guide will give you the confidence to make smarter financial decisions--no matter what the headlines say"-- Leseprobe Chapter 1 The Economic Kingdom The person that turns over the most rocks wins the game. And that’s always been my philosophy. —Peter Lynch When I was younger, I loved to play a game called “The Princess and the Kingdom.” My brother and I would build fantastical lands with our toys, complete with castles, moats, and tiny LEGO armies that really hurt if you accidentally stepped on them with your bare feet. For me, empire building was the best part. How fruitful the land was, how protected the entrances were, what tools the people had access to—that’s what really determined how the game would play out. The same holds for the financial infrastructure that’s woven through our lives, our very own Economic Kingdom. Let’s start with the biggest castle: the monetary policy castle. The Kingdom The monetary policy castle is presided over by the Federal Reserve, which is supposed to be managing the entire kingdom. We’ll get into the inner workings of the Fed soon, but for right now what you need to know is that the monetary policy castle is most directly in charge of two other castles: inflation (defined as a rise in prices that creates a decrease in purchasing power, something we are all familiar with) and the labor market (where we find critically important metrics such as the labor force participation rate, the quits rate, the unemployment rate, and more). As I dive deeper, I’ll describe how the Federal Reserve’s actions can have far-reaching effects on the economic well-being of the kingdom’s citizens, influencing their ability to afford goods and services and to find meaningful employment. Each castle (such as the housing market, stock market, and bond market) has a moat around it that provides a little insulation. That’s why the Fed may fire a cannon (say, raising interest rates), and the cannonball might land without much of a hit—meaning that it really didn’t do much. In other cases, it might damage the drawbridge and make day-to-day functioning harder, or it might take out a squadron of an attacking army (such as unwanted inflation). The Federal Reserve is constantly firing cannons near all of those castles in an attempt to exert control over the empire. Near is an important part of that sentence because the Fed cannon can ...
