Here’s the second installment of my bids for the best economic and finance books for 2011 (you can find Part I here). Yes, it’s subjective and there are other worthy titles that go unmentioned. Space may be unlimited on the web, but time is still finite. On that note, here’s one that got away: Pandora’s Risk: Uncertainty at the Core of Finance, by Kent Osband. This one should have been tapped for Book Bits when it was published this past summer. Better late than never. In any case, Osband takes the market bull by the horns and brings us on an enlightening quantitative journey through the crucial business of thinking about and managing risk in the money game. An instant classic that’s at once provocative, thought-provoking, and practical (pay special attention to his innovative take on measuring price volatility in chapter 11). Meanwhile, here are some of the more memorable names that actually made it to these digital pages during the past 12 months of Book Bits:

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As 2011 comes to a close, the risk of a new economic recession in the U.S. looks low. Or at least lower than it was a few months ago. Not everyone agrees, but you’ll have no trouble rounding up dismal scientists who think that better days are coming. For instance, 20 economists polled by CNN this week collectively estimate the odds of a downturn at 20%, or down slightly from 30% three months earlier. “Preliminary data is pointing to a solid fourth quarter of GDP growth that should carry the economy through the next 6 months,” says Sean Snaith, a University of Central Florida economics professor.

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