The best 48 Economic Theory books

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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. 

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.

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. 

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.

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. 

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.

Basic Economics (2000) provides a broad yet comprehensive introduction to economic principles, without requiring a background in the subject. Avoiding complicated jargon, it explains core economic concepts in plain English, with the help of real-life examples. 

The General Theory of Employment (1936) is a deep dive into the complexities of economic activity and employment. It critically examines how factors like interest rates, human psychology, and speculation influence investment and, ultimately, employment. It argues for more direct intervention by public authorities in organizing investment to mitigate instabilities, particularly during periods of economic downturn.

Reminiscences of a Stock Operator (1923) looks at the life and trading strategies of Jesse Livermore, a professional stock and commodities trader, through the pseudonymous character of Larry Livingston. It explores the psychological challenges and strategic complexities of trading, offering timeless insights into market behavior and the discipline required for success in the financial world.

Capital (1867) represents a groundbreaking analysis of money and its many roles at the height of the industrial revolution. By focusing on the exploitation of the working class, the text challenges traditional economic theories and frames a capitalist economy as a system inherently leading to social inequality and class struggle.

Capital in the Twenty-First Century (2013) offers a deep dive into the historical trends and dynamics of income and wealth inequality. Drawing from centuries of data, it examines how capital concentration perpetuates inequality and proposes bold solutions to address this growing divide.

Capital and Ideology (2019) delves into the historical evolution and justification of economic inequality across various societies and ideological systems. It scrutinizes the roles of property relations and educational structures in consolidating wealth and power, concluding with proposals for progressive policies to mitigate prevailing inequalities.

Prediction Machines (2018) delves into the transformative impact of artificial intelligence on the economics of decision-making. It highlights how AI reduces the cost of predictions, reshapes business problems, and influences decision-making amid uncertainty. The work further explores the value of data in today’s AI-driven economy and the changing dynamics between human labor and automation.

Narrative and Numbers (2017) explores the role of storytelling and quantitative analysis in determining corporate valuations. It reveals how narratives may greatly influence financial models and projections, using real-world examples ranging from Uber to Vale, and including Twitter and Facebook's diverging paths.

The House of Morgan (1990) chronicles the influential Morgan dynasty, who shaped the course of modern finance through their shrewd financial acumen and keen understanding of world economic currents. This portrait, spanning four generations, details the rise of the Morgans from Victorian London to their pinnacle during the 1987 financial crisis. 

Pillars of Wealth (2023) outlines a proven strategy for accumulating wealth through real estate. With the right mindset and the strategies included in the three pillars of wealth – defense, offense, and investing – anyone can build a multi-million-dollar net worth. 

Capitalist Realism (2009) offers an analysis of how contemporary society is shaped and constrained by capitalist ideology. You'll explore the concept of “capitalist realism” – the pervasive sense that no alternative to capitalism is possible. This influential work challenges you to consider the psychological and cultural impacts of living under such a dominant economic system, prompting a reevaluation of societal structures and personal beliefs.

A Random Walk Down Wall Street (1973) looks at the unpredictability of stock market prices, linking their movements to a “random walk.” It dispels the generally accepted belief in discernible market patterns, suggesting that consistent gains are not a product of easily-chartered trends.

Milton Friedman (2023) provides a nuanced biography of the influential free-market economist. Tracing Friedman's groundbreaking work across diverse policy areas, it explores his instrumental role in the rise of modern American conservatism and free market ideology. 

Same as Ever (2023) invites you to identify the things that stay the same so you can successfully navigate this ever-changing world. Engaging stories, witty examples, and a whole lot of practical advice combine into a master class on assessing risk, seizing opportunity, and living your best life – and not just financially.

The Society of the Spectacle (1967) plunges into an intricate world where media, culture, and consumerism converge, shaping perceptions and experiences. It’s a journey through a labyrinth of modern life's illusions, offering insights on discerning reality amidst the dazzling distortions and finding your path in a world awash with reflective deceits.

Power And Prediction (2018) explores the impact of AI's advancements in prediction on decision-making processes, where AI handles the predictive elements and human judgment is important in their interpretation and application.

Number Go Up (2023) dives into the tumultuous and transformative world of cryptocurrencies. It traces the revolutionary rise of Bitcoin, the pivotal role and controversies of stablecoins like Tether, and the ambitious yet complex venture of El Salvador adopting Bitcoin as legal tender. Uncover the intricacies and challenges of a world redefined by digital currencies, and get a compelling look at the future of finance and its potential impact on global economies.

The Case for Good Jobs (2023) illustrates how market wages often fail to cover workers' basic needs, spotlighting the necessity for businesses to revalue labor and adopt good job practices.

The Technology Trap (2019) explores the impact of technological progress on economic and political dynamics throughout history. It draws rich parallels between the Industrial Revolution and the current age of automation, highlighting the potential for both long-term progress and short-term disruption.

Financial Literacy for All (2024) equips you to navigate the complexities of personal and community finances with greater proficiency and understanding. It reveals how financial education can transform your economic stability and unlock opportunities by managing credit more effectively. This guide is essential for anyone looking to enhance their financial literacy and make informed decisions that pave the way to personal and communal prosperity.

The Algebra of Wealth (2024) provides a guide to optimizing financial success in today’s economy. It emphasizes focusing on talent over passion for career decisions, leveraging economic trends, and making small financial moves with significant long-term returns. It also incorporates stoic principles to encourage better financial habits and reduced spending.