Books for people who want to understand finance and economic choices (mark: 6 out of 10)

• Books for people who want to understand finance and economic choices
  • The author explains how simple financial decision can have strong impacts on the world, because there is as much psicology behind finance as maths
    • Lords of Finance
      by Liaquat Ahamed
  • The first book to be able to explain concretely correlation, regression analysis and how we behave
    • Freakeconomics
      by Steven D. Levitt & Stephen J. Dubner

Lords of Finance by Liaquat Ahamed

By raising the interest rates (in the goald standard) the capitals are attracted in the country
High interest rates attracted short term interests (speculative, not long term)
Central bank were private, they defends the value of the currency, they support the government just during the wars

Freakeconomics by Steven D. Levitt & Stephen J. Dubner
Analysing data, we could demonstrate causality or correlation.
Regression analysis could prove correlation, not causality. A positive correlation between A and B can happens because A causes B, B causes A, or an external factor causes both A and B.
Regression analysis should be carried out on samples which are identical but for the 2 aspects under investigation