Naked Economics Undressing the Dismal Science, breaks down economics in a way that is comprehensible and clear to someone who has trouble understanding the basic principles of economics. There is a total of thirteen chapters, where Charles Wheelan goes through and discusses the power of markets, incentives, human capital, financial markets, the federal reserve, international economics, the wealth and poverty of nations etc. This book was published in 2002, however I have read the updated version, which was released in 2010. My report will be focusing on three important chapters which are the Federal Reserve, International Economics and Development Economics. The Federal Reserve System consists of twelve Reserve Banks dispersed throughout the
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There are approximately a billion people in the universe that don’t get enough to eat everyday and the reason for that is because their economies have simply failed them. In order to expand and thrive, a country is required to enforce and obtain laws, courts, physical and organizational structures and facilities, and a government that has the ability to assemble taxes. Wheelan states, “Human capital is what makes individuals productive, and productivity is what determines our standard of living” (301). Education and skills cause growth and improves economies. A nation without education or skills will not improve itself, it will stay poor and unskilled. Also, tropical weather has a big effect on a country’s economy due to heavy rainfall and high temperatures that are severe for food production. Diseases are also easily spread throughout the country. Trade has the ability to make any country better off, however rich countries should take part and have their economies get exports from poor countries. Most poor countries are in the middle of wars, and it is very difficult to get an education, let alone run a business in between wars. Another problem is that unfortunately, women are not even close to being equal to men in a large amount of these poor countries. Wheelan states that as women gain power and wealth, they do more good than the average man. No country will be …show more content…
Most Indians in businesses do not accept a little rip, wrinkly, or dirty rupee note. Since other Indians know that many of the fellow citizens won’t accept them either, that is what makes them go through this situation where they will only accept fresh, clean and new rupee notes. However, banks do accept rupee notes, even if they are dirty and they also exchange dirty ones for new ones. But, the Indians don’t seem to care because rational people turn down legal paper because they assume that it might not be accepted by others. This shows that our trust in paper currency is based on the faith that others place in the same paper. Since the paper currency has no intrinsic worth it’s usefulness is determined by the value of a sum of money. For that reason, I completely agree with the author. During the 2007 recession, the United States denounced various European countries for not doing enough to increase activity in their economies. In the development economics chapter, Wheelan thought the criticism was arguable, however I believe that it is vitally important. In order for the American economy to recuperate other economies such as China, Europe and Japan need to improve as well. The way International economics works is that, all countries become richer when companies challenge each other for a surplus in earnings. The purpose of global economic policy is to make
There are approximately a billion people in the universe that don’t get enough to eat everyday and the reason for that is because their economies have simply failed them. In order to expand and thrive, a country is required to enforce and obtain laws, courts, physical and organizational structures and facilities, and a government that has the ability to assemble taxes. Wheelan states, “Human capital is what makes individuals productive, and productivity is what determines our standard of living” (301). Education and skills cause growth and improves economies. A nation without education or skills will not improve itself, it will stay poor and unskilled. Also, tropical weather has a big effect on a country’s economy due to heavy rainfall and high temperatures that are severe for food production. Diseases are also easily spread throughout the country. Trade has the ability to make any country better off, however rich countries should take part and have their economies get exports from poor countries. Most poor countries are in the middle of wars, and it is very difficult to get an education, let alone run a business in between wars. Another problem is that unfortunately, women are not even close to being equal to men in a large amount of these poor countries. Wheelan states that as women gain power and wealth, they do more good than the average man. No country will be …show more content…
Most Indians in businesses do not accept a little rip, wrinkly, or dirty rupee note. Since other Indians know that many of the fellow citizens won’t accept them either, that is what makes them go through this situation where they will only accept fresh, clean and new rupee notes. However, banks do accept rupee notes, even if they are dirty and they also exchange dirty ones for new ones. But, the Indians don’t seem to care because rational people turn down legal paper because they assume that it might not be accepted by others. This shows that our trust in paper currency is based on the faith that others place in the same paper. Since the paper currency has no intrinsic worth it’s usefulness is determined by the value of a sum of money. For that reason, I completely agree with the author. During the 2007 recession, the United States denounced various European countries for not doing enough to increase activity in their economies. In the development economics chapter, Wheelan thought the criticism was arguable, however I believe that it is vitally important. In order for the American economy to recuperate other economies such as China, Europe and Japan need to improve as well. The way International economics works is that, all countries become richer when companies challenge each other for a surplus in earnings. The purpose of global economic policy is to make