The Economics Book

19 hand with dynasties of bankers, who financed their trading and voyages of discovery. New trading nations replaced small-scale ...

20 PROPERTY SHOULD BE PRIVATE PROPERTY RIGHTS W e learn about ownership and personal property from our earliest childhood tussle ...

21 See also: Markets and morality 22–23 ■ Provision of public goods and services 46–47 ■ Marxist economics 100–05 ■ Definitions ...

22 M any people know what it is like to be exploited or “ripped off” by a vendor, such as when buying overpriced ice-creams at a ...

23 Medieval communities felt strongly about the prices merchants charged. In 1321, William le Bole of London was punished for se ...

24 YOU DON’T NEED TO BARTER WHEN YOU HAVE COINS THE FUNCTION OF MONEY I n many parts of the world people are increasingly moving ...

25 See also: Financial services 26–29 ■ The quantity theory of money 30–33 ■ The paradox of value 63 LET TRADING BEGIN Money is ...

26 MAKE MONEY FROM MONEY FINANCIAL SERVICES H umans have long engaged in borrowing and lending. There is evidence that these act ...

27 See also: Public companies 38 ■ Financial engineering 262–65 ■ Market uncertainty 274–75 ■ Financial crises 296–301 ■ Bank ru ...

28 merchant might want a safe place to store his gold, from where he can withdraw it quickly if necessary. Another might want a ...

29 the development of financial districts in large cities. Economists call this phenomenon “network externalities,” which refers ...

30 MONEY CAUSES INFLATION THE QUANTITY THEORY OF MONEY I n 16th-century Europe prices were rising inexplicably. Some said that r ...

31 See also: The function of money 24–25 ■ The Keynesian multiplier 164–65 ■ Monetarist policy 196–201 ■ Inflation and unemploym ...

32 supply of money led to inflation. His thorough study is considered the first important statement of the quantity theory of mo ...

33 This painting by Dutch master Pieter Bruegel (1559) shows vagrants rubbing shoulders with the rich during Lent. Steep price r ...

34 F or the last half century many economists have championed free trade. They argue that only by removing restrictions on trade ...

35 French farmers demonstrated on tractors in Paris, 2010, to denounce a sharp fall in grain prices after import quotas were lib ...

36 THE ECONOMY CAN BE COUNTED MEASURING WEALTH T oday we take it for granted that the economy can be measured, and its expansion ...

37 See also: The circular flow of the economy 40–45 ■ Testing economic theories 170 ■ The economics of happiness 216–19 ■ Gender ...

38 See also: Economic equilibrium 118–23 ■ Corporate governance 168–69 ■ Institutions in economics 206–07^ M erchant ships have ...