Fans pick 100 books like Understanding the Culture of Markets

Biographies of economists can be dull and technical, but not if their subject is John Maynard Keynes. The flamboyant British economist was a member of the Bloomsbury Group of Virginia Woolf and E.M. Forster, married the famous Russian ballerina Lydia Lopokova, and had a group of followers known as the Cambridge circus. The great skill of Skidelsky is his ability to integrate the many facets of Keynes life, from the exciting intellectual milieu of Cambridge and the cultural milieu in London to the economic problems of war, peace, and the Great Depression. This book demonstrates in vivid terms that economics is done by economists with an underlying vision. In Schumpeter’s words that of Keynes was that of: “the arteriosclerotic economy whose opportunities for rejuvenating venture were in permanent decline.”

Economists are arguing to this day what gave rise to the enormous rise in living standards since the 1750s. Deirdre McCloskey argues in this first book of her Bourgeois trilogy that it resulted from a cultural shift in which bourgeois virtues replaced aristocratic ones. The book opened my eyes to the importance of cultural attitudes (dignity and stigma) of various economic and social activities. McCloskey claims that sustained economic growth and innovation were crucially dependent on the dignity of the bourgeois and their commercial activities. McCloskey’s fluent prose which interweaves empirical historical knowledge with literary allusions remains a model to me. 

This might well be the least-read book on my list, but I hope that will change soon. Lanham is a Professor of Rhetoric who argues that Andy Warhol was the best economist of attention of the twentieth century, and an exemplar for the economy of the twenty-first, in which value is created through knowledge and attention. Lanham’s inspired distinction between stuff and fluff convincingly demonstrates that the modern economy is more about the experience, style, and packaging of the stuff, rather than the other way around. And that is a good thing. In one of the many digressions in the book he presents Friedrich Hayek as the Dadaist among the economists. This book is a wild ride, with insights on every page. 

Perhaps Max Weber’s book on the Protestant Ethic should be on my list. But I prefer this book by sociologist Campbell which is at least as bold in its argument. It takes a fresh look at consumption and suggests that modern consumption draws on human imagination, a desire for novelty, and experimentation. Like Weber, Campbell traces the historical roots of modern economic action, and he does so by suggesting that Romanticism was not a hostile reaction to capitalism, but the imaginative counterpart to the productive revolution of the eighteenth century. As such Romanticism facilitated the Industrial Revolution and made the modern economy possible. Campbell does not explore this, but I think of the Romantic Ethic as the cultural background for the subjective theory of value in economics.

Steven Levitt, Professor of Economics at the University of Chicago, has written a thoughtful book at the layperson level to help one understand how mathematical and economic tools provide insights into sensitive social issues from racism to abortion.

He delves into predicting the long-term consequences of short-term decisions. This book is not intended for the college classroom, and it is controversial, but I found it to be a fascinating read.

We all loved Freakonomics. The incredible Stephen J. Dubner and Steven Levitt did it again in their second book Super Freakonomics.

Thinking like an economist is a powerful tool. What might surprise you are the motley assortment of questions that you can think about from the perspective of an economist.

This book is bold, funny, and insightful. And what’s the underlying theme? Well, it’s one thing all economists can agree on – incentives matter. Dubner and Levitt are masterful storytellers and teachers.

Even if you aren’t interested in thinking like an economist, their perspective on topics covered is worth the read. 

Viviana Zelizer’s book told me the fascinating story of the cultural transition from a time when children provide to parents mostly financial well-being to a time when children provide only life well-being.

In the 18th century, in America, parents welcomed the arrival of their children mostly as workers when children were young and as security when parents were old. By the mid-19th century, however, parents of the urban elite welcomed their children mostly for their life well-being benefits in love, smiles, and successes that make parents proud.

Children, in Zelizer’s language, became ‘sacralized,’ economically worthless but emotionally priceless. By the early 20th century, working-class and poor parents joined elite parents in sacralizing their children. 

Szuchman and Anderson use the framework of economics principles to look at marital relationships. Though the book was written as more of a self-help marriage guide, it’s an excellent introductory primer to many economic theories. 

Every chapter introduces and defines an economic theory–including moral hazard, comparative advantage, loss aversion, supply and demand, and incentives. Then the authors profile a married couple in crisis and describe how the economic theory fits the marital problem.

It’s a fascinating way of narrowing the larger issues of how to allocate scarce resources into the domestic sphere. I found applying economic theories to married couple fights helped me better understand economics as a whole, and the ways I make decisions in every part of my life.

Additionally, this book can be laugh-out-loud funny.

One of the world’s leading microeconomic scholars presents in this fascinating book brilliant insights about economic theory and its role in public policy.

Rubinstein challenges several central tenets of game theory, and sheds light on the role economics can and should play in society at large. The book presents economic theory through a series of fables.

The stories provide the basic insights of economics, but also enables us to critically evaluate the effect of implicit assumptions on the predictive power of economic theory and its moral implications.

This is a serious scholarly investigation of the origin and eventual triumph of the efficient market hypothesis. Polillo is very smart and the theoretical sophistication high. It combines a thorough history with some extremely interesting ideas about thought, culture, and social processes fleshed out with several different methods of analysis and interpretation.