The Harcot Theory of Haircuts

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The price of a trim depends largely on local wages, and they tend to be much lower in poorer countries. But my bill for the rescue operation of my hair didn't seem to reflect that. And it seemed to that perhaps the harcot theory, in many ways, as a cherished bit of practical advice from economics, may actually be wrong.

Hints are turning to hard data: economic slowdowns are coming. We ask about the threat of recessions in different regions and about the effects they may have. The reckless behaviour of China’s fighter pilots is just one reflection of the country’s distrust of the West. And a haircut gone wrong leads to a lesson that challenges textbook economics. For full access to print, digital and audio editions of The Economist, subscribe here www.economist.com/intelligenceoffer