The Undercover Economist by Tim Harford
What do the price of a Cappuccino and China’s new wealth have in common?
After being told I this book is better than Freakonomics, I had high hopes. And I was not disappointed in the least. As the name suggests, this book reads like an undercover detective story.
What I really like about this book, and perhaps now understanding Economics better, is that Economics is the study of what humans actually do versus what we think they are doing or what they may do. And how, using a complex mathematical model, the non-obvious trends can be determined. I finally understand why coffee shops are so in vogue and particularly why you and I would be willing to pay more for something we now make at home. Just having read the final chapter on China is almost freaky because just yesterday I received an invitation to speak at a conference in Shanghai!
Remember to check out the website of the author, Tim Hardford, a contributor to the Financial Times and Slate.
