Economics books - essential purchases

buck65

I am aware that there is a sticky above with a superb list of links, info , books etc. but I would like to pick your brains on what you would recommend to a novice.
I am involved in business management for years and am presently undertaking a diploma on Financial management.
Economics on the other hand is not essential in my line of work, but I am personally interested in markets, investments and a bit of theory etc. but I pluck articles from here , there and everywhere.
Would you please recommend books with this in mind, not really looking for textbooks just easy to understand and intersting.
Books I am reading are.. Warren Buffet Essays, Ascent of Money -N Ferguson. Thanks in advance.

Kindleberger's Mania book is a must read, despite its age.

Économiste Monétaire

Nassim Taleb's Fooled by Randomness and The Black Swan are quite good. A Random Walk Down Wall Street and John Kenneth Galbraith's The Great Crash 1929 are also worth reading. I'm aware that you're not really looking for textbooks, but Investments by Bodie, Kane and Marcus would be good for a beginner (and a quick reference guide to the jargon, even if you're not interested in ploughing through the whole thing); beyond this level the books will get very mathsy.

Edit: This Time is Different: Eight centuries of financial folly by Reinhart and Rogoff is supposed to be good; though, I haven't got around to reading it yet. Irrational Exuberance by Robert Shiller is another book worth your time.

graw

Hi buck65,

Before I suggest some recommendations can you let me know if the Ascent of Money is a good read? I seen Niall Ferguson on Charlie Rose the other night and he seems to have some interesting ideas. From what I gather, he provides some insights to historical events right? His book is on my 'to read' list. Cheers.

OK, Économiste Monétaire has mentioned some good books that I would also recommend, in particular Fooled by randomness and of course one of my favourites Irrational Exuberance by Robert Shiller. IE is a very good read if you are interested in real estate markets and behavioual economics. Shiller also has another book out at the moment called Animal Spirits, how psychology drives the markets, probably worth a look too.

The undercover economist is usually recommended to students new to economics as the reader learns to think as an 'economic naturalist', basically, like an economist but without the need for graphs and numbers.

Freakonomics and Superfreakonomics are both popular although I have only read Freakonomics and superfreakonomics has been in the firing line (of Paul Krugman) for providing false data reagarding the chapter on global warming. Still, someone said it mentioned prostitutes and some other whacky stuff you wouldnt normally associate with economics so its most likely still a good read.

If you are interested in mathematics and risk models, the founder of fractal geometry, Benoit Mandlebrot has a book called the misbehaviour of markets and well, its my favourite book so I had to mention it. Its gives a good insight to the misleading assumptions made in finance in economics and how risk is underestimated.

The banking and financial crises of 2008 and what it means by George Soros is an insightful read too. This one should really get you thinking! Again, this is more Behavioural economics. (Seems to be an ever growing branch of economics) This is up to date stuff so great for conversations with well... whoever you can find who is willing to talk about this kind of thing!

Since you are reading Warren Buffett essays, I presume that you are probably interested in (online) trading? If that is the case, the intelligent investor by Ben Graham is essential reading.

Lastly, I couldnt put down my copy of Paul Krugmans Return of Depression Economics so I cant not mention it.

Any 'non-technical' books (as I call them) that you find in the Economics/Finance section in the bookstores should more or less be considered (easily) readable by the mass majority of people regardless if they are new to the subject so dont worry about that. Have a good time reading the books.

buck65

The Ascent of Money (also a TV series) is great , explains how money and markets developed in the past up to the modern era. Ferguson is quite good at simplifying things for the novice. Some good stuff on the sub primes as well.

Also I bought the FT book of the year - Lords of Finance, the 1929 depression, at the weekend, liking it so far.

InReality

The return of depression economics by krugman is well worth a read.
middle of the road and quite short with good explanations about currency , trade , recessions.