Economics in One Lesson

Many people do not realize that there are more than one macro economic theories. “Freshwater vs Saltwater” economic theories are currently hotly debated.

My Keynes vs Hayek blog points out the two main competing theories, in an entertaining way, that go back to the early 1900’s. It takes a long time to get enough data to refine theory … theory can not be confirmed or denied with just one event!

Most people are unaware that the “mainstream” theory commonly discussed today is Keynesian theory. This book is an excellent, and easy to read, primer on the theory supported by Hayek.

Written in 1949 … this book’s crystal clear explanation is as relevant today as then. As well it should be. He breaks it down so the lesson is timeless and applies anytime and anywhere.


It is important you understand why there is debate when it comes to the current economy and why solutions are often not as cut and dried as you may wish.  If you are struggling to get an easy to understand explanation on the tradeoffs between the current macro-economic debates, this book is the best I’ve seen yet.

Broken windows, sweaters, electricians, farmers, and many other easy to understand examples. This author even foresaw Solyndra-type problems over 60 years ago.


1988 edition             2008 edition (the one I’ve read)




2 Responses to Economics in One Lesson

  1. Larry Frank, Sr. May 19, 2012 at 2:15 pm #

    From “Paper Promises” by Philip Coggan (future blog coming) page 263:
    “It was not until the Americans became debtors that they adopted Keynes’s view.” This is an interesting observation in that Keynes, as adopted and supported by the U.S., supports deficit spending (borrowing) to solve sluggish growth.


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