This fourth edition of Understanding the World Economy will continue to provide the reader with the clearest guide available to the global economic scene.

Since the last edition was published in 2006, enormous changes have taken place. The world economy has been in upheaval with the biggest financial crash and ensuing recession since the 1930s; with a global re-ordering of economic power relations; with widespread demonstrations by those left behind; with divergent views about where Europe is heading; with a growing scarcity of essential resources; with increasing international terrorism and with increasing concerns of environmental degradation and climate change. To embrace such urgent issues, this text is an almost entirely rewritten version of earlier editions.

Tony Cleaver takes a long look at the evolution of market systems and how they have liberated peoples on one side of the globe and yet driven others into debt, depression and despair. He analyses causes and consequences, and discusses (and sometimes dismisses) economic theories.

Topics covered include:

  • Why crashes occur
  • What causes some countries to grow and others to stagnate
  • Whether the Euro can survive
  • The economic underpinnings of terrorism
  • The dangers of climate change

This book takes the student through the major characteristics of the global economy in jargon-free non-technical language. Chapter summary diagrams and a wealth of boxes and tables make this an essential introduction for undergraduates and A-level students, as well as the casual reader.

chapter 1|24 pages

Going to Market

chapter 2|21 pages

Market Failure and the Great Debate

chapter 3|18 pages

Unemployment and Inflation

chapter 6|20 pages

Customs Unions and Common Markets

chapter 7|20 pages

Money, Banking and International Finance

chapter 8|25 pages

Exchange Rates and Currency Union

chapter 10|28 pages

Economic Development, Growth and Inequality

chapter 11|19 pages

The Economics of Terrorism

chapter 12|22 pages

Environmental Economics

Sustaining Spaceship Earth

chapter 13|9 pages


What Future Awaits Us in the Twenty-First Century and Beyond?