With this landmark treatise on political economy, Adam Smith paved the way for modern capitalism, arguing that a truly free market was the engine of a fair and productive society. Books I-III of "The Wealth of Nations" examine the "division of labour" as the key to economic growth, by ensuring the interdependence of individuals within society. They also cover the origins of money, the importance of wages, profit, rent and stocks. Smith's work laid the foundations of economic theory in general and "classical" economics in particular, but the real sophistication of his analysis derives from the fact that it also encompasses a combination of ethics, philosophy and history to create a vast panorama of society.

About the Author

Adam Smith (1723-90) taught both logic and moral philosophy at Glasgow University. His Wealth of Nations revolutionised the economic theories of the time. Andrew Skinner teaches at the Adam Smith Institute and is an expert on the author's work.