Somebody sent me an email the other day. The person wanted to know what kind of economics and which books I had been reading. The reason why he was asking was that he'd been reading Debunking Economics by Steve Keen - I highly recommend that text to everybody, never has there been a more comprehensive book about the nonsense that is taught to economic students - and thought I was making sense with the economics that came out of my pen. I have to admit, I felt a bit relieved to hear that. Maybe I'm "escaping from the old ideas, which ramify, for those brought up as most of us have been, into every corner of our minds." (One point to him or her who knows this quote without googling it).
I started thinking about which books were the most important in opening my eyes to real-world economics. I came up with this list, roughly in chronological order.
1. Manias, Panics and Crashes - Kindleberger
2. The Origin of Financial Crises - Cooper
3. Stabilizing the Unstable Economy - Minsky
4. Can "It" Happen Again? - Minsky
5. John Maynard Keynes - Minsky
6. This Time Is Different - Reinhart and Rogoff
7. Animal Spirits - Akerlof and Shiller
8. The Holy Grail Of Macroeconomics - Koo
9. Predictably Irrational - Ariely
10. Debunking Economics (1st ed., just finishing 2nd.) - Keen
11.When Money Dies - Fergusson
12. The Coming Generational Storm - Kotlikoff
13. Theory of Economic Development - Schumpeter
14. A Guide To What's Wrong With Economics - Fullbrook
15. Keynes: The Return Of The Master - Skidelsky
16. How Markets Fail - Cassidy
17. 23 Things They Don't Tell You About Capitalism - Chang
18. Keynes Betrayed - Tily
19. Crisis Economics - Roubini
I can recommend all of those books to everyone. The ones in italic are books that I remember had the utmost effects on my way of thinking about economics problems. I cannot stress how important it is for students, scholars and most importantly teachers in economics to read them! Also, anyone with interest in being able to distinguish between the bullshit and the real-world theory should read the ones in italic - especially Debunking Economics and How Markets Fail.
For those who want to have fun while learning about the markets and the craziness of economic theory I can recommend Predictably Irrational, The Big Short (Lewis) and Too Big To Fail (Sorkin) to name just a handful out of my head.
So start reading people, otherwise no good things are going to happen to this travesty that mainstream economics is today.
And remember: Hicks's IS-LM isn't a Keynesian model. Hicks himself admitted to that 30 years ago. Oh, and finally, in case you didn't know: the market demand curve doesn't slope downwards at all times, it can go up and down like a snake. Also, there is no market supply curve.