The best 31 Economic Theory books

1
The Psychology of Money

The Psychology of Money

Morgan Housel
Timeless Lessons on Wealth, Greed, and Happiness
4.4 (975 ratings)

What's The Psychology of Money about?

The Psychology of Money (2020) looks at the way money works in the real world. Financial decisions are rarely driven by the theories of economists and the neat spreadsheets of accountants. Instead, a myriad of factors, from personal history to pride and even envy, shape our decision-making. The results are often surprising – and always fascinating.

Who should read The Psychology of Money?

  • Investors and savers
  • Entrepreneurs 
  • History buffs

2
The Wealth of Nations

The Wealth of Nations

Adam Smith
The most influential economic book of all time
4.3 (755 ratings)

What's The Wealth of Nations about?

The Wealth of Nations is a profoundly influential work in the study of economics and examines exactly how nations become wealthy. Adam Smith advocates that by allowing individuals to freely pursue their own self-interest in a free market, without government regulation, nations will prosper.

Who should read The Wealth of Nations?

  • Anyone who wants to understand the foundations of capitalism and the free market
  • Anyone curious about the core tenets of a fundamental work of economic theory

3
Capitalism, Socialism and Democracy

Capitalism, Socialism and Democracy

Joseph Schumpeter
Essential analysis on where the world economy is headed
4.2 (557 ratings)

What's Capitalism, Socialism and Democracy about?

Capitalism, Socialism and Democracy (1942) is a seminal work of economics. Its ideas have proven prophetic, and remain relevant to this day. It claims that capitalism will ultimately be eroded by the very processes that define it. It also explains the differences between capitalism and socialism and their relationship to democracy, and helps readers understand the role of entrepreneurship and creative destruction in modern capitalism.

Who should read Capitalism, Socialism and Democracy?

  • Students of the social sciences
  • Those interested in politics, economy, and their histories
  • Critical thinkers curious about the future of capitalism

4
Capitalism and Freedom

Capitalism and Freedom

Milton Friedman
The definitive statement of Friedman's immensely influential economic philosophy
4.4 (454 ratings)

What's Capitalism and Freedom about?

Capitalism and Freedom (1962) is one of the most influential discussions of the relationship between economic and political freedom to have ever been put to paper. Written at the height of the Cold War between Soviet socialism and Western capitalism, Milton Friedman argues that only free markets can guarantee liberty. His theory remains every bit as relevant and thought-provoking today as when it was first published.

Who should read Capitalism and Freedom?

  • Economics buffs fascinated by the intellectual history of the last century
  • Free-marketeers, classical liberals and libertarians
  • Opponents of free-market capitalism interested in the other side of the argument

5
Slouching Towards Utopia

Slouching Towards Utopia

J. Bradford DeLong
An Economic History of the Twentieth Century
3.9 (31 ratings)

What's Slouching Towards Utopia about?

Slouching Towards Utopia (2022) examines the “long century” between 1870 and 2010, during which technological progress, globalization, and the advent of social democracy opened a new horizon of human progress. Barring the horror years of World Wars I and II, humanity seemed to be on a slow, uneven crawl toward utopia. But in 2010, the tables turned. Economic progress in the Global North ground to a halt. 

Who should read Slouching Towards Utopia?

  • History buffs
  • John Maynard Keynes fans
  • Anyone wondering how the world became so unequal

6
Economic Facts and Fallacies

Economic Facts and Fallacies

Thomas Sowell
Uncovering popular fallacies in economics
3.4 (612 ratings)

What's Economic Facts and Fallacies about?

Economic Facts and Fallacies (2008) takes some common assumptions about economics and politics and reveals them as fallacies. It’s only by facing uncomfortable truths, the book argues, that we can begin to solve the problems in front of us.

Who should read Economic Facts and Fallacies?

  • Those interested in politics and economics
  • Anyone looking for a contrary perspective
  • Libertarians and conservatives

7
Economics: The User’s Guide

Economics: The User’s Guide

Ha-Joon Chang
Everything you need to know about economics.
4.3 (138 ratings)

What's Economics: The User’s Guide about?

Economics: The User’s Guide lays out the foundational concepts of economics in an easily relatable and compelling way. Examining the history of economics as well as some critical changes to global economic institutions, this book will teach you everything you need to know about how economics works today.

Who should read Economics: The User’s Guide?

  • Anyone interested in the history of economics
  • Anyone interested in the intersection of politics and economics
  • Anyone who dozed through Economics 101 in college

8
Stop. Think. Invest.

Stop. Think. Invest.

Michael Bailey
​​A Behavioral Finance Framework for Optimizing Investment Portfolios
3.9 (295 ratings)

What's Stop. Think. Invest. about?

Stop. Think. Invest. (2022) takes a look at behavioral economics, a field of study that explores the roles of human emotion and behavior in financial decision-making. It examines how people’s unconscious biases and inherent aversions influence their decisions in every aspect of the investment process.

Who should read Stop. Think. Invest.?

  • Anyone curious about the field of behavioral economics
  • Investors who’d like to make better decisions
  • Would-be financiers interested in making their first investment

9
A Little History of Economics

A Little History of Economics

Niall Kishtainy
A whistle-stop tour of the major questions posed by economists through the centuries, from Aristotle to Thomas Piketty
4.5 (257 ratings)

What's A Little History of Economics about?

A Little History of Economics (2017) is a whistle-stop tour of the major questions posed by economists through the centuries, from Aristotle to Thomas Piketty. It examines questions of inequality, selfishness, and the role government should play in economies. 

Who should read A Little History of Economics?

  • The econo-curious
  • Those looking for a bird’s eye view of economics
  • Students of broad-scope history

10
The Constitution of Liberty

The Constitution of Liberty

Friedrich A. Hayek
In Defense of Freedom and a Free Society
3.9 (278 ratings)

What's The Constitution of Liberty about?

The Constitution of Liberty (1960) is a classic of economic philosophy. As one of the seminal texts of modern liberalism, it reminds us of the values of individual freedom, limited government, and universal principles of law. First published in the 1960s, it contends that social progress depends on the free market rather than on socialist planning. This work remains relevant in an age where socialist ideas are gaining new popularity. 

Who should read The Constitution of Liberty?

  • Students of twentieth-century history, politics, and economy 
  • Progressives and conservatives curious about liberalism 
  • Anyone interested in economic philosophy

11
Doughnut Economics

Doughnut Economics

Kate Raworth
Seven Ways to Think Like a 21st-Century Economist
4.1 (147 ratings)

What's Doughnut Economics about?

Doughnut Economics (2017) is a call to arms for a fresh approach to economics. As inequality soars and environmental crisis looms, the book’s central question has never seemed more relevant. How can we build a just economic system that allows us to thrive while preserving the planet? A good place to start, Kate Raworth suggests, is to do away with the old myths that have shaped economic thinking for so long. Zeroing in on the doughnut-shaped “sweet spot” in which our needs can be sustainably met, this is a thought-provoking read which might just help save the world.

Who should read Doughnut Economics?

  • Anyone losing sleep over the Earth’s future as climate change kicks in
  • Economic innovators in search of new models for a new century
  • Fans of fresh thinking on big topics

12
SuperFreakonomics

SuperFreakonomics

Steven D. Levitt and Stephen J. Dubner
Global Cooling, Patriotic Prostitutes and Why Suicide Bombers Should Buy Life Insurance
4.2 (71 ratings)

What's SuperFreakonomics about?

SuperFreakonomics (2009) explains why thinking like an economist can help us understand our modern world. These blinks illustrate key economic principles and the importance of collecting data with colorful stories from human history, and offers surprising solutions for the global problems that we face today.

Who should read SuperFreakonomics?

  • Anyone interested in entertaining, statistical facts about human behavior
  • Math buffs who believe in the power of statistics
  • Anyone curious about a very cheap way to stop global warming

13
Adaptive Markets

Adaptive Markets

Andrew W. Lo
Financial Evolution at the Speed of Thought
4.1 (64 ratings)

What's Adaptive Markets about?

Adaptive Markets (2017) is about a new economic theory that helps us better understand the human element behind financial markets. Andrew W. Lo expertly illustrates the shortcomings of current prevailing economic theories, showing us how finance is less like physics or math and more like a responsive and evolving organism – not unlike ourselves.

Who should read Adaptive Markets?

  • Investors interested in finance and how the market works
  • Readers interested in the science of money
  • Students of economics

14
Licence to be Bad

Licence to be Bad

Jonathan Aldred
How Economics Corrupted Us
4.0 (98 ratings)

What's Licence to be Bad about?

Licence to be Bad (2019) explains how in the past 50 years a small handful of economists has drastically changed the way we think about the subject. Ideas including game theory, public choice theory, and free-riding have worked their way into our minds and our discourse, apparently permitting us to behave badly.

Who should read Licence to be Bad?

  • Economists interested in rethinking the subject
  • Ethics enthusiasts with an interest in recent thought
  • Anyone wondering why we think the things we do

15
Utopia for Realists

Utopia for Realists

Rutger Bregman
And How We Can Get There
4.4 (223 ratings)

What's Utopia for Realists about?

Utopia for Realists (2016) is a call to arms for a radical rethinking of life, work and how society functions. It argues that the world enjoys unprecedented wealth and material comfort but is still full of problems, from soul-destroying jobs to inequality and poverty. We have the power to solve these problems and build a better future if we embrace utopian thinking.

Who should read Utopia for Realists?

  • Blue-sky thinkers
  • Socially engaged people who want to eradicate poverty 
  • Frustrated citizens who feel there must be a better way to organize our society and economy

16
Talking to My Daughter About the Economy

Talking to My Daughter About the Economy

Yanis Varoufakis
A Brief History of Capitalism
4.4 (136 ratings)

What's Talking to My Daughter About the Economy about?

Talking to My Daughter About the Economy (2018) is a lucid and accessible account of our current economic system. This engaging primer explains what economics is, what it does, and why it became such a force in our everyday lives.

Who should read Talking to My Daughter About the Economy?

  • Political junkies hungry for accessible economic theory
  • Everyday citizens seeking to engage with politics
  • Anyone interested in understanding our current economic system

17
23 Things They Don’t Tell You About Capitalism

23 Things They Don’t Tell You About Capitalism

Ha-Joon Chang
Why capitalism is not what you think it is.
4.0 (140 ratings)

What's 23 Things They Don’t Tell You About Capitalism about?

In 23 Things They Don’t Tell You About Capitalism Ha-Joon Chang destroys the biggest myths of our current economic approach. He explains how, despite what most economists believe, there are many things wrong with free market capitalism. As well as explaining the problems, Chang also offers possible solutions which could help us build a better, fairer world.

Who should read 23 Things They Don’t Tell You About Capitalism?

  • Students of economics who are fed up with mainstream teaching
  • Anyone who takes an interest in the financial crisis and why nobody saw it coming
  • Anyone wondering why levels of inequality are so high

18
Inflation Matters

Inflation Matters

Pete Comley
Inflationary Wave Theory, Its Impact on Inflation Past and Present ... and the Deflation Yet to Come
4.4 (256 ratings)

What's Inflation Matters about?

Inflation Matters (2015) takes what’s often presented as a dense and complicated –⁠ not to mention boring –⁠ subject and turns it into something anyone can understand. Using simple, clear explanations, it presents the reasons why inflation exists, what and who perpetuates it, and how it impacts both the economy and society as a whole. Analyzing historical trends, it also presents a theory that inflation tends to follow a wavelike pattern over time –⁠ but that it doesn’t necessarily need to remain that way.

Who should read Inflation Matters?

  • People concerned about rising inflation and what it means for them
  • Amateur investors and economists
  • Anyone who wants to become more economically and financially literate

19
The Origin of Wealth

The Origin of Wealth

Eric D. Beinhocker
The Radical Remaking of Economics and What It Means for Business And Society
4.0 (55 ratings)

What's The Origin of Wealth about?

The Origin of Wealth shows us the inadequacies of the economic theories that underpin our understanding of economics. The book argues that economic actors shouldn’t be seen as rational consumers that act on their self-interest. Rather, economics is best understood as a complex system of adaptation, similar to evolution, where products, ideas, and ideology compete for survival.

Who should read The Origin of Wealth?

  • Students and scholars of economic science
  • Anyone interested in economics, social sciences or business   
  • Business leaders, economists and politicians

20
Edge of Chaos

Edge of Chaos

Dambisa Moyo
Why Democracy is Failing to Deliver Economic Growth – and How to Fix It
3.8 (54 ratings)

What's Edge of Chaos about?

Edge of Chaos (2018) examines the key challenges that liberal democracies around the world are facing today. Aging populations, limited resources and increasing debt are all threats to these countries’ economic well-being – but so too are the “remedies” of short-term policies and protectionism. Author Dambisa Moyo examines that misguided agenda and presents a radical blueprint for economic growth in the twenty-first century.

Who should read Edge of Chaos?

  • Citizens concerned about Brexit and Donald Trump
  • Policymakers interested in rebuilding their political systems
  • Curious readers hoping to get a grip on global economic systems

21
The Value of Everything

The Value of Everything

Mariana Mazzucato
Making and Taking in the Global Economy
4.4 (123 ratings)

What's The Value of Everything about?

The Value of Everything (2018) presents an argument for redefining value in the economy so that we can better understand who really creates value, and who extracts it.

Who should read The Value of Everything?

  • Economists eager for new ideas
  • Fans of politics in search of change
  • Lovers of radical ideas and ambitious visions

22
Economics for the Common Good

Economics for the Common Good

Jean Tirole
Delve into economics with a Nobel Prize winner
4.0 (51 ratings)

What's Economics for the Common Good about?

Jean Tirole’s Economics for the Common Good (2017) is a wide-ranging look at the contemporary economy, packed with plenty of insights into the theory and practice of modern-day economics. Deconstructing the supposed opposition of state and market, Tirole explores their many interconnections in fields ranging from climate change to property rights and the new digital economy.

Who should read Economics for the Common Good?

  • Anyone interested in the how, what and why of economics
  • Proponents of free markets and advocates of state regulation
  • Anyone who’s ever wondered why climate change is so hard to tackle

23
Austerity

Austerity

Mark Blyth
The History of a Dangerous Idea
4.4 (39 ratings)

What's Austerity about?

Austerity (2013) cuts through the confusion behind our recent financial crises and reveals what really happens when economists call for a policy of austerity to be implemented. This is when budgets are cut, public funding is slashed and working-class families suffer so that banks can be saved and continue to make billions. Find out what’s really going on and who’s really being protected when your country gets pushed into austerity.

Who should read Austerity?

  • Students of political science and economics
  • Readers who want a better understanding of the recent banking crisis
  • Activists fighting against the top 1 percent

24
Portfolios of the Poor

Portfolios of the Poor

Daryl Collins
How the World’s Poor Live on $2 a Day
3.4 (18 ratings)

What's Portfolios of the Poor about?

Portfolios of the Poor (2009) details the creative financial strategies that the world’s poorest people use to get by. These blinks explain how people with no educational background whatsoever manage their finances.

Who should read Portfolios of the Poor?

  • People who want to understand the realities faced by the world’s poor
  • Those seeking productive ways to end poverty

25
Austerity

Austerity

Alberto Alesina
When It Works and When It Doesn't
3.8 (30 ratings)

What's Austerity about?

Austerity (2019) uses data analysis to look at one of the most controversial topics in economics today. An analysis of several countries’ austerity policies over the past several decades reveals that cutting spending can actually help the economy expand.

Who should read Austerity?

  • Economists keen to learn more about austerity
  • Politicians looking to brush up on their economics
  • Anyone who wants to understand the numbers behind government policy

26
Open

Open

Johan Norberg
The Story of Human Progress
4.5 (65 ratings)

What's Open about?

Open (2020) traces the progress of ancient and modern human accomplishments, and reveals that behind all of our major advancements is a policy of openness, tolerance, and free trade. You’ll see how, from the Phoenicians to the Dutch East India Trading Company, the free flow of commerce and ideas has led to wealth, innovation, and problem-solving that would have never been possible otherwise.

Who should read Open?

  • History buffs
  • Those interested in the Brexit debate
  • People keen to know the secrets of innovation and progress

27
Meltdown

Meltdown

Thomas E. Woods
A Free-Market Look at Why the Stock Market Collapsed, the Economy Tanked, and Government Bailouts Will Make Things Worse
3.9 (32 ratings)

What's Meltdown about?

Meltdown (2009) gives you a guide to understanding the government regulations which in effect caused the 2008 global financial crisis. These blinks will explain how government spending has and always will worsen economic recessions, and importantly, what needs to be done to save the world economy.

Who should read Meltdown?

  • Students of economics or finance
  • Anyone interested in the causes of the 2008 financial crisis
  • People sick of the meddling of “big government”

28
House of Debt

House of Debt

Atif Mian and Amir Sufi
How They (and You) Caused the Great Recession, and How We Can Prevent It from Happening Again
4.1 (12 ratings)

What's House of Debt about?

When we bailed out the banks during the Great Recession, we didn’t actually address the real factors that caused the economic downturn. The actual problem lay with excessive mortgage lending to those who couldn’t afford it, which led to heavy debts and, eventually, huge collapses in consumer spending. To avoid the consequences of this boom-and-bust cycle in the future, the authors propose new ways of restructuring debt and stimulating the economy.

Who should read House of Debt?

  • Anyone who wants to know about the vulnerabilities of our financial system – booms, bubbles and busts
  • Anyone who wants to understand the mortgage industry
  • Anyone who wants to buy a house
  • Anyone who’s interested in macroeconomic theory and the Great Recession

29
Crisis in the Eurozone

Crisis in the Eurozone

Costas Lapavitsas and others
Understand the root of the eurozone crisis.
3.9 (15 ratings)

What's Crisis in the Eurozone about?

These blinks explain the root of the eurozone crisis in a comprehensive, methodical way. They shed light on the deep structural problems the eurozone is facing and outline scenarios that could help restore competitiveness among the southern peripheral states of the region.

Who should read Crisis in the Eurozone?

  • Anyone who wants to better understand the eurozone crisis
  • Anyone interested in macroeconomics
  • Anyone interested in fiscal policy

30
Forecast

Forecast

Mark Buchanan
What Physics, Meteorology and the Natural Sciences can teach us about Economics
3.9 (13 ratings)

What's Forecast about?

Forecast critiques modern economic theory by revealing its major flaws. Physicist Mark Buchanan takes a close look at basic scientific assumptions behind our economic understanding and, with deft analytical skills, he unveils their inaccuracy. In the second part of the book, Buchanan presents a range of scientific discoveries that he believes might eventually help us to improve modern economics.

Who should read Forecast?

  • Anyone interested in economics, science or politics

31
Diversity and Complexity

Diversity and Complexity

Scott E. Page
How Diversity Can Contribute to The Performance of Adaptive Systems

What's Diversity and Complexity about?

Diversity and Complexity (2011) offers an in-depth examination of the nature of the world's complex systems, from natural ecosystems to economic markets. It outlines the reasons that diversity within such systems is so crucial, as well as showing how diversity helps fuel innovation and novelty.

Who should read Diversity and Complexity?

  • Scientists or graduate students who study biology, ecology or evolution
  • Political scientists interested in complex social systems
  • Economists or marketers wanting to learn more about how innovation happens

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