Many people around the world have views on how the economy works or should work. A lot of these opinions are just personal judgements which may have no evidence to back them up. Economic theory is a more respected form of opinion because it is based on evidence and is subject to constant peer review. Economic theory tries to be more objective while many of our personal economic ideas are merely subjective. It is useful to understand the different economic theories not only because they provide a lot of insight about how the world works but also because they influence so many people. Even if we don’t agree with a theory you can be certain that there are some very powerful people who do. Here are just some of the best economic theory books available today.
The Wealth of Nations (2003) by Adam Smith
This book was originally written by Adam Smith in 1776 but it remains one of the most important economic books ever written. It still has a huge influence today and there are many modern theories that are just building upon this work. The book was originally titled ‘An Enquiry into the Nature and Causes of the Wealth of Nations’. Although it was written so long ago the book is still easy enough to read. Anyone who is serious about understanding economic theory should have this book at the top of their reading list.
Capital: A Critique of Political Economy by Karl Marx (1977)
Karl Marx is arguably the most influential economist of all time. In the twentieth century much of the world’s population lived in economies that were inspired by his theories. Even those who vehemently oppose Karl Marx have no problem admitting that he provided influential theories that still have an impact today. Anyone who hopes to understand economic theory will need to read Marx. His ideas and theories are constantly being adapted and altered but they remain important.
Naked Economics: Undressing the Dismal Science by Charles Wheelan (2003)
This book is aimed at those people who normally find economic theory to be a bit dry and hard to understand. This book explains everything in easy terms and it is a fun read from start to finish; this is a text that would be good to read just for the pleasure of it. If you don’t like economics now you are almost certain to by the end of this book. This book is full of insights and will be the ideal introduction to anyone who is just being introduced to the subject of economic theory.
How an Economy Grows and Why It Crashes by Peter D. Schiff and Andrew J. Schiff (2010)
This book was only released on the market quite recently but already it has won a lot of praise. This book is written in simple language that is aimed at demystifying economic theory and applying it to the modern world. By the end of this book most readers will be able to discuss economics and form opinions based on sound ideas. This text will be suitable for almost anyway; a great introduction to the world of economic theory.
International Economics: Theory and Policy — 4th Edition by Paul Krugman and Maurice Obstfeld (1997)
This book focuses on the economic theory of international economics and provides a great resource for this subject. It is written by two of the most famous economists alive today and each of they provide an in-depth look at many important economic theories. This book is widely used in universities but it will also be a great reference book for practically anyone.