Economics Classics: Keynes, Friedman, Sowell, Samuelson, Krugman
Trader's Library #95 · Money, macro and economics. The great economic debates, useful for understanding how the market reacts to the Fed.
Author: J.M. Keynes, Milton Friedman, Thomas Sowell, Paul Samuelson, Paul Krugman, L. Randall Wray, Thomas Piketty · Original: incl. The General Theory; Money Mischief; Basic Economics; Economics; The Return of Depression Economics · Year: 1936 · Usefulness for traders: ★★☆☆☆
What it's about
The mainstream and the economic debates: Keynes's “The General Theory of Employment, Interest and Money”, Friedman's “Money Mischief” and “Free to Choose”, Sowell's “Basic Economics”, the textbooks by Samuelson and Krugman, Krugman's “The Return of Depression Economics” on the 2008 crisis, Wray's “Modern Money Theory” and Piketty's books on inequality.
What it gives a trader
For a trader two are key: Friedman's “Money Mischief” (how money and inflation work) and Krugman's “The Return of Depression Economics” (how financial crises spill over into the economy). They help you understand how the market reacts to Fed decisions and macro data.
Lessons for traders
- the market reacts to expectations about monetary policy
- inflation is a monetary phenomenon, but with many causes
- economists' debates show there's no certainty in macro (overconfidence, Atlas of biases #11)
What to watch out for
Textbooks and theory, with no direct application to trading. Some of it is economic policy.
Discussion
The discussion takes place in Hetman Capital Club (in Polish). Join the discussion in the Club →
Navigation
← #094 The Austrian School: Money, Credit and Cycles · Library index · #096 Gold and Rickards: Currency Wars, The Death of Money and Others →
Educational content, not investment advice. The book description is my own summary and assessment, not quotations. Edition details were checked in catalogues and bookshops, and where there was doubt I said so plainly.