14 Best Books on Finance and Economics

Finance and economics are two of the most important subjects in the world. The field of finance and economics has become increasingly complex in recent years, as the world has entered a new era of globalization. To help readers stay ahead of the curve, here are fourteen of the best books on finance and economics.

Best Books on Finance and Economics

If you’re looking for a guide to getting started, or for books that will provide a deeper understanding of the concepts at play, these are some of the best options available. 

1. Freakonomics, by Steven D. Levitt

Freakonomics examines how social and economic incentives can affect individuals and society as a whole. The book discusses a variety of cases where seemingly innocuous decisions have powerful consequences.

Incentives are the lifeblood of human choice and action. They motivate us to do what’s best for ourselves and those around us, in whatever situation we find ourselves. This is one of the best books to understand economics and finance in this list.

2. The Big Short, by Michael Lewis

The Big Short tells the story of four outsiders in the world of high finance who forecast the credit and housing bubble collapse before everyone else. The stock market crash in the United States was already old news when it became public in the fall of 2008. The true crisis, the hidden crash, had occurred over the previous year in strange feeder markets where the sun never shines and the SEC is afraid to tread.

Who could have predicted the risk of assuming ever-rising real estate values, a risk increased everyday by the introduction of those obscure, fake instruments based on piles of questionable mortgages? Michael Lewis answers that question in a narrative filled with outrage and dark comedy in this fitting sequel to Liar’s Poker.

3. Good Economics for Hard Times, by Abhijit V. Banerjee

Abhijit V. Banerjee and Esther Duflo, famous MIT economists, take on this task in their groundbreaking book, which builds on cutting-edge economic research and explains it with lucidity and grace. 

Good Economics for Hard Times is an original, challenging, and urgent book that makes a compelling argument for intelligent interventionism. Undoubtedly, one of the best books on economics and finance for beginners in this list.

4. The Wealth of Nations, by Adam Smith

The Wealth of Nations, one of the best financial economics books is the magnum opus of Scottish economist Adam Smith. He exposes the world to the basic idea of economics and capitalism in the contemporary sense of the words. It is the cornerstone for all modern economic philosophy and political economy.

The Wealth of Nations is a must-read for anybody interested in learning more about the ideas that underpin all modern capitalist economies, as well as the wealth generation process that these principles enable.

5. The Reckoning, by Jacob Soll

The Reckoning, a masterwork of economic and political history and a radically new perspective on the recent past. This book compels us to see how accounting is an essential instrument of great institutions and nations. One that has never been more important in our increasingly transparent and interconnected world.

6. An Inquiry into the Nature and Causes of The Wealth of Nations, by Adam Smith

This book is a classic work of economics that examines the nature and causes of wealth. The author, Adam Smith, argues that wealth is created through the division of labor and the accumulation of capital. 

Smith, on the other hand, not only viewed merchants and manufacturers with fear, but also tempered his celebration of a self-regulating economy with a darker vision of a profit-driven society’s dehumanizing potential. This is a panoramic story of history’s struggle for individual liberty and general prosperity. A subject he communicated with other Enlightenment writers. Without a doubt, this book is one of the best books to learn economics and finance.

7. Wealth, Poverty and Politics, by Thomas Sowell

In this book Thomas Sowell argues that political and ideological battles have led to dangerous confusion about income inequality in The United States.

Pundits and politically motivated economists extol ambiguous statistics and sensational hypotheses while ignoring the true cause of income inequality: wealth creation. We could indeed understand inequality correctly if we focus solely on wealth distribution and ignore wealth production factors including such geography, demography, and culture.

8. Predictably Irrational, by Dan Ariely

Dan Ariely refutes the presumption that we behave in fundamentally rational ways. From coffee to weight loss, from car buying to relationship choice, we constantly overpay, underestimate, and procrastinate. These misguided behaviors are actually quite systematic and predictable, making us predictably irrational.

9. Too Big to Fail, by Andrew Ross Sorkin

Andrew Ross Sorkin delivers an insightful and comprehensive account of the global economic crisis. It brought about serious consequences for so many. He re-creates all of the drama and turmoil of these turbulent days, revealing never-before-seen details and recounting how. Motivated as much by ego and greed as by fear and self-preservation, the world’s most powerful men and women in finance and politics decided the fate of the world’s economy.

10. The Intelligent Investor, by Benjamin Graham

Benjamin Graham is the investment advisor who taught and inspired people worldwide. He is one of the greatest financial minds of all time. His teachings will help you achieve your financial goals.

Investing successfully over a lifetime does not require a lot of hard work or unique skills. Anyone can do it with the right guidance and advice. With a sound intellectual framework in place, we can avoid clouding our judgement with emotions, and arrive at sensible outcomes. Additionally, here are some great books similar to Intelligent Investor in this list.

11. Capital in the Twenty-First Century, By Thoman Piketty

A major driver of inequality returns on capital exceeding the rate of economic growth is again threatening to generate extreme discontent and undermine democratic values. Thomas Piketty’s groundbreaking findings in this ambitious, original, and rigorous work will change the conversation about wealth and inequality forever

12. The Black Swan, by Nassim Nicholas Taleb

Picturing all of the ways in which we can be tricked, Taleb has articulated some truly insightful concepts about how we are all susceptible to fooling ourselves. While large events continue to surprise and shape our world, we limit our thinking to the irrelevant and insignificant. Taleb’s revelatory book will change the way you see the world. This second edition includes a new philosophical and empirical essay, “On Robustness and Fragility,” that offers tools for navigating and exploiting a Black Swan world.

13. The Basics of Bitcoins and Blockchains, by Antony Lewis

The Basics of Bitcoins and Blockchains, one of the the best books on economics and finance, coming out to teach us all about this new currency and the revolutionary technology behind it. This book discusses the history of Bitcoin, the Bitcoin blockchain, and the buying, selling, and mining of Bitcoin. It also explains how payments are made and transactions are secured. Other cryptocurrencies and cryptocurrency pricing are investigated, with the goal of determining how to value cryptocurrencies and digital tokens.

14. A Random Walk Down Wall Street, by Burton G. Malkiel

A Random Walk Down Wall Street is the best investment guide You can buy. Whether you’re thinking about your first 401k contribution, retirement, or somewhere in between this book will help you to decide. Burton G. Malkiel delivers expert insights across the whole range of investment choices in this revised release, including valuable new material on cryptocurrencies like bitcoin and “tax-loss harvesting,” to help you navigate the rough waters of today’s financial markets.

Final Words:

These are the best books on finance and economics to read if you want to learn more about these topics. Reading one of these books can help you understand financial concepts, explore economic theories, and develop sound financial planning strategies. So if you’re interested in learning more about finance and economics, start by reading one of these books!