Powerful ideas from top nonfiction
Try Blinkist to get the key ideas from 7,500+ bestselling nonfiction titles and podcasts. Listen or read in just 15 minutes.
Get started
Blink 3 of 8 - The 5 AM Club
by Robin Sharma
In This Economy? summary
Listen to the Intro
In This Economy? summary
Kyla Scanlon
How Money & Markets Really Work
16 mins
Brief summary
In This Economy? by Kyla Scanlon dissects the current economic landscape, providing insights into financial principles, market behavior, and economic policy. It offers valuable guidance for individuals seeking to understand and navigate today's complex economy.
Topics
Table of Contents
In This Economy?
Summary of 4 key ideas
Audio & text in the Blinkist app
Key idea 1 of 4
Much ado about money
You're at a coffee shop, handing over a crisp $5 bill to pay for your latte. But what gives this piece of paper its value? What even is money?
At its core, money is a social construct that hinges on trust. It serves three key functions: it’s a medium of exchange, a store of value, and a unit of account. In other words, it’s like a common language which lets us trade goods and services, save for the future, and put a price tag on everything from packs of gum to luxury yachts.
In today's digital age, money takes on new forms. Gone are the days of bartering with seashells or hauling sacks of gold coins to the market. Now, most of our financial transactions happen electronically, with money zipping from one bank account to another at the click of a button.
But how is money created in the first place? Well, it’s not just about printing physical cash. Banks create money through what’s called fractional reserve banking. When you deposit money into your account, the bank doesn't just lock it away in a vault. Instead, it keeps just a fraction of those funds in reserve and lends out the rest to other customers. This process of lending creates new money in the economy, as the borrowed funds are spent and deposited into other accounts, where the cycle begins anew.
Of course, banks can't just lend out money willy-nilly. They have to carefully balance their assets (such as loans and investments) with their liabilities (like customer deposits). All this is reflected in a bank's balance sheet, which provides a snapshot of its financial health at any given moment. That’s becasue lending is a risky business. Banks must be prudent in their decisions. They need to consider a host of factors, from the creditworthiness of borrowers to the overall economic climate. To protect themselves against losses, banks employ risk management strategies, such as diversifying their loan portfolios and using complex financial instruments like derivatives.
But even with these safeguards in place, banks can still fail. The 2008 financial crisis showed what happens when banks take on too much risk, issuing risky mortgages and creating opaque investment products. The result was waves of bank failures sweeping through the global economy – underscoring the importance of risk management and regulatory oversight.
At the center of the global economy, the U.S. dollar reigns supreme as the world's reserve currency. This status is a testament to the size and stability of the American economy, as well as the depth and liquidity of its financial markets. When times are tough, investors flock to the greenback as a safe haven, driving up its value relative to other currencies.
However, some experts warn that the dollar's dominance is under threat. Rising powers like China seek to challenge the existing financial order, promoting their own currencies and building alternative payment systems. While the dollar's displacement is unlikely to happen overnight, it’s important to keep an eye on – as these trends suggest that the global monetary landscape is shifting over time.
Want to see all full key ideas from In This Economy??
Key ideas in In This Economy?
More knowledge in less time
Read or listen
Get the key ideas from nonfiction bestsellers in minutes, not hours.
Find your next read
Get book lists curated by experts and personalized recommendations.
Shortcasts New
We’ve teamed up with podcast creators to bring you key insights from podcasts.
What is In This Economy? about?
In This Economy? (2024) is a straightforward and approachable guide to understanding the core principles of economics. Aimed at demystifying financial complexities, it debunks common myths and uses engaging analogies and clear language to make sense of topics like national debt, recessions, and employment markets.
In This Economy? Review
In This Economy? by Kyla Scanlon (2022) explores the challenges and opportunities of the modern economic landscape. Here's why this book is worth your time:
- Offers practical strategies for navigating financial uncertainty, providing actionable solutions for readers to thrive in any economic climate.
- Explores innovative trends shaping the future of work and finance, offering valuable insights for individuals seeking to stay ahead of the curve.
- Engages readers with real-life stories and thought-provoking analyses, ensuring a stimulating and informative reading experience.
Who should read In This Economy??
- Budding students of economics, finance, or business administration
- Entrepreneurs seeking to understand the economic forces impacting their companies
- Anyone who wants to better understand the economic world around them
Categories with In This Economy?
Book summaries like In This Economy?
People ❤️ Blinkist
Sven O.
It's highly addictive to get core insights on personally relevant topics without repetition or triviality. Added to that the apps ability to suggest kindred interests opens up a foundation of knowledge.
Thi Viet Quynh N.
Great app. Good selection of book summaries you can read or listen to while commuting. Instead of scrolling through your social media news feed, this is a much better way to spend your spare time in my opinion.
Jonathan A.
Life changing. The concept of being able to grasp a book's main point in such a short time truly opens multiple opportunities to grow every area of your life at a faster rate.
Renee D.
Great app. Addicting. Perfect for wait times, morning coffee, evening before bed. Extremely well written, thorough, easy to use.
People also liked these summaries
The Brand Gap
Marty Neumeier
How to Bridge the Distance Between Business Strategy and Design
15 min
4.3
Fooled by Randomness
Nassim Nicholas Taleb
The Hidden Role of Chance in Life and the Markets
20 min
4.6
4.8 Stars
Average ratings on iOS and Google Play
35 Million
Downloads on all platforms
10+ years
Experience igniting personal growth
In This Economy? FAQs
What is the main message of In This Economy?
Adapt to thrive in changing economic conditions and view challenges as opportunities for growth.
How long does it take to read In This Economy?
Reading time for In This Economy varies, but you can grasp the key insights in just a few minutes with the Blinkist summary.
Is In This Economy a good book? Is it worth reading?
In This Economy is a must-read for its practical advice on navigating economic shifts and fostering resilience.
Who is the author of In This Economy?
Kyla Scanlon is the author of In This Economy.
What to read after In This Economy??
If you're wondering what to read next after In This Economy?, here are some recommendations we suggest:
- Buddhism – Plain and Simple by Steve Hagen
- Why is Sex Fun? by Jared Diamond
- The 15 Commitments of Conscious Leadership by Jim Dethmer
- Creativity, Inc. by Ed Catmull with Amy Wallace
- The Upside of Your Dark Side by Todd Kashdan and Robert Biswas-Diener
- Agile Selling by Jill Konrath
- Make Your Mark by Jocelyn K. Glei
- The First Minute by Chris Fenning
- When Genius Failed by Roger Lowenstein
- Moore’s Law by Arnold Thackray