Adam smith biography economic theory keynesian

Adam Smith and John Maynard Keynes are two of the most famous economists of all time. They are usually thought of as being diametrically opposed, but they did share one fundamental economic insight: Both understood that the key to economic prosperity is to keep the money circulating.

One can think of Smith’s An Inquiry into the Nature and Causes of the Wealth of Nations, published in 1776, as an open letter to European monarchs.

When Smith was writing, those rulers dominated the planet.

Most still ruled by divine right.

Adam smith theory of economic development

Their realms were their property, to do with as they saw fit.

Smith did engage in microeconomics, analyzing the new way of production that was emerging in Britain at that time. Yet, as the title of his book suggests, his primary concern was macroeconomics.

He wanted to explain what made a nation wealthy and how a nation’s wealth could be enhanced.

His explanations and recommendations put him at odd