Naked Economics -- Incentives Matter

Yes, a second post about the same book. Some things are worth repeating. (I already recommened this book here.) In this follow-up post, let me try and articulate what I liked about the book.

For years, I have been searching for a book that would explain Macroeconomics to me, and this turned out to be the book. I still have a lot more learning to do, but this book served as a much-needed foundation. Now, I have to build on some of the concepts in Naked Economics. (As an aside, I found that wikipedia has some very good articles of topics like inflation, deflation, the flow of currency etc.)

Back to Naked Economics. It was in Chapter 2 -- Incentives Matter -- that Charles Wheelan really reeled me in. This fascinating essay starts by exploring the perilous lives of Africa's black rhinos and theire prized noses. He makes his points through real examples of the factors that are at play in eco-tourism, takes detours to India (Hindustan Fertilizer Corporation) and also uses the pollution in Mexico city to explain to us how incentives work (or don't).

Programs, organizations and systems work better when they get the incentives right. It is like rowing downstream.

Of course, I think that everyone should read every chapter, but if you end up reading only one, let it be Chapter 2.

Wheelan, Incentives,economics