Now in its second edition, Economics: The Basics provides an engaging and topical introduction to the key issues in contemporary economics. Fully updated to take into account the economic recession, changing patterns in world trade, housing and currency markets, this book covers fundamental issues, including: How different economic systems function The boom and bust cycle of market economies The impact of emerging markets How price, supply and demand interact The role of the banking and finance industry Whether we can emerge from recession and reduce poverty The impact of economics on the environment With a glossary of terms, suggestions for further reading and new case studies covering subjects including the sub-prime mortgage crisis, changing commodity prices and speculative bubbles, this comprehensive and accessible guide is essential reading for anyone who wants to understand how economics works.