Fans pick 100 books like The General Theory of Employment, Interest, and Money

This one’s by a member of the home team—a former student, colleague, collaborator, and fellow MMT conspirator.

Kelton was an advisor to Bernie Sanders, served as chief economist for the Senate Budget Committee, and is a frequent guest on all the important media outlets. She explains the basics of MMT and why they are important—especially right now as Congress is hog-tied trying to figure out what to do to prevent Uncle Sam from defaulting as we broach the debt limit.

During my graduate school years at Carnegie-Mellon University, I was exposed to Thomas Sargent’s Macroeconomic Theory, which taught me how to work with difference equations.

More importantly, it inculcated the notion in me that economic theory and econometrics are inseparable notions. The approach that I attained from this book together with the courses that I took at Carnegie-Mellon’s Graduate School of Industrial Administration - GSIA as it was called then – have colored by my research outlook and my research itself over the years.

While Thomas Sargent produced many other graduate textbooks on macroeconomics in future years, I might say this was the most influential one (for me) in terms of the fluidity of its writing and its attempt to bridge macroeconomic theory and empirical research. 

This is a collected volume that Kevin Hoover of Duke University put together to provide a philosophical and methodological viewpoint on the empirical and quantitative research that was emerging from the Universities of Chicago, Minnesota, Carnegie-Mellon, Rochester in the 1970s and 1980s.

My own article, “Time-to-Build and Aggregate Fluctuations: Some New Evidence”, originally published in International Economic Review in 1989, was re-printed in this volume. Why was this article re-printed in this volume? It showed that a tightly-specified representative consumer model of aggregate fluctuations, regardless of the theoretical enhancements and econometric approach, could not explain series like aggregate output, consumption and investment jointly with aggregate hours.

While Kevin Hoover continued his methodological research on causality, micro-foundations of macroeconomics and the like, this research led me to delve into micro data models of consumption and labor supply with my co-author Robert Miller from CMU to model individual choices under aggregate shocks.     

I read this wonderful book in the early 2000s when I had returned to Istanbul, Türkiye back from a professional position in the UK.

I was captivated by its description of the flora and fauna of our geography. I recall reading how the beloved chestnut trees of our region had made their way there from China. Braudel is an economic historian who is known to have placed physical and biological nature in the foreground of historical analysis. Thus, according to Braudel, nature is not merely space to be conquered or to be shaped by human desires.

Indeed, the organization of economic life in the Mediterranean was probably shaped by the diversity and difficulty of its geography as much as shaping it, as we argued in our article on Mediterranean business cycles published with Fabio Canova in Open Economies Review in 2013.   

Living in Istanbul over a long period since 1995 made me want to know its history better.

This book is one of best written and most influential books on the topic describing, as it does, not only the political and military history of the Ottoman Empire but also its economic and social fabric, its ability to innovate in a variety of fields and the reasons behind its rule over six centuries.

My interest in the topic eventually led to an influential publication with the economic historian Şevket Pamuk and our younger colleague Alpay Filiztekin in the European Review of Economic History in 2008 on the sources of economic growth for the region encompassing modern Türkiye between 1880-2005.      

Yes, that Margaret Atwood!

The one whose book, The Handmaids Tale is targeted by book banners. This one is more subversive, covering money from every angle—religious, historical, literary, ecological, and psychological—not limited to the economic perspective. She provides a fascinating dive into money’s nature in five short chapters that transcribe a series of entertaining lectures she gave on Canadian radio.

If you’ve ever wondered why so many words related to money (redemption, debt jubilee, balance) have religious overtones, she explains why. She’ll help you to understand the relationship between Saint Nick, patron saint of thieves and pawnshops, and that other red-suited (and sooted) Old Nick who also keeps track of who’s been naughty. As they say, “time compounds all debts” but “death pays all debts.”  

It is my favorite book on the nether side of money—debt.

This is based on a lecture given by Grierson in London in 1970. (Do you see a pattern? Lectures can make entertaining books.)

He was the world’s most famous numismatist (expert on coins). A professor at the University of Cambridge, UK, for seventy years (!), he spent most of his salary collecting medieval coins, donating 20,000 of them to the university’s museum—the world’s premier collection. But coins were invented around 700 B.C., while money has been around for 6000 years.

In this book he speculates on money’s origins (in Babylonian temples)—linking it to the ancient practice of Wergeld (blood money). He hypothesized that money originates as a measure of debt owed to victims. Hence, the link of money to debt and sin made by Atwood. Money is not a “thing” but a record of indebtedness.

Today, it is tax debt that drives money: you work hard to get money to… show more.

If you find Keynes’s explanation of unemployment depressing, here’s the antidote: another from the home team—Pavlina is a former student and current colleague.

Her solution is a universal job guarantee provided and funded by the Federal government. This isn’t welfare; wages are paid for useful work that promotes the public interest. Unlike private firms, government doesn’t need profits and cannot run out of money (see Kelton’s The Deficit Myth).

Pavlina explains the details: how the government finances the program; why it stabilizes wages and prices so that it cannot be inflationary; how the program will be run; and what kinds of projects will be undertaken.

She provides a clear, concise, detailed examination of policy that will permanently end the scourge of unemployment.

Ultimately, I am recommending this book to you because Milton Friedman is one of the founders of Capitalism and winner of the Nobel. I enjoyed reading this book in college for the significant impact it holds. Truly, in a free market society based on survival of the fittest, one is forced to outlive the other. However, a great author will combine the two polar dynamic ideologies into one. While Milton Friedman’s work has historical implications on modern society, it is out of date. 

This is the story of the momentous wartime meetings in New Hampshire that mapped out the new institutions that were to guide the global economy through the Cold War and after: the International Monetary Fund and the World Bank. It is an absorbing intellectual battle between arrogant British aristocratic John Maynard Keynes and the scrappy US Treasury official Harry Dexter White. (Spoiler alert: White won, but spoiled his reputation by likely being a Soviet spy.)