The paper gives an overview of the most important principles and the most recent research in the field of the economics of happiness. Its aim is to improve the basis for public discussion and informed decision-making in policy creation and implementation. The concept of happiness attracted economists early on and their attitude towards it has changed with time. Modern happiness data represent a new, scientifically validated way of measuring progress, although there is still room for improvement. The research shows that key determinants of happiness include physical and mental health, social relations, income and institutions. Happiness in itself leads to a wide range of benefits for individuals and society. This kind of research can help policy creators decide on the role, nature, target recipients and priorities for relevant policies. All this demonstrates that happiness economics has a potential for addressing current needs and future tasks to build a happier society.