In Tim Harford's new book The Undercover Economist Strikes Back, he sets out to explain how the whole world economy works. In this, the second chapter from the book, Harford shows what we can learn from one particular recession that began in the early 1970s and was entirely created on Capitol Hill, the heart of American government. Readers should note that this ebook is just one chapter from the new book. The full book will be released on August 29. A million readers bought The Undercover Economist to get the lowdown on how economics works on a small scale, in our everyday lives. Since then, economics has become big news. Crises, austerity, riots, bonuses - all are in the headlines all the time. But how does this large-scale economic world really work? Find out in The Undercover Economist Strikes Back.