Thursday, December 06, 2007

Rules of thumb...

Studying EEP from Macroeconomics by Greg Mankiw is an experience.. Not many people write a book from the perspective of the reader (called the market concept of competition in marketing terms) and hence end up rambling about things that concern them rather than their reader (I am stating this at the risk of exhibiting the same malaise).
When you read Mankiw, you gradually uncover an engrossing story that is macroeconomics and ideas that never occurred to you thus far in life seem to be naturally extending from common sense.. And then suddenly some concept comes up that you don't really understand and then you begin to even doubt what you had understood so far.. This throws you a few chapters back but you emerge back stronger and with more clarity of concepts.
Recently i came across a paper by Mankiw wherein he spoke on his six rules of thumb. Now I know how Mankiw managed to write his brilliant book without losing focus of his audience's needs. Definitely a good read.
On a tangential note, in case you have not seen the video on the ten laws of economics, there is no better way to have a positive economic profit.
Here it goes... http://www.youtube.com/watch?v=VVp8UGjECt4