An Inquiry Into the Nature and Causes of the Wealth of Nations

The book presents a systematic analysis of political economy, explaining how specialization and the division of labor raise productivity and how the extent of markets constrains that division. It traces the origin and uses of money, distinguishes between real and nominal prices, and analyzes the components of commodity prices, wages, profits, and land rent. It examines capital formation, the employment of stock, and the dynamics of accumulation, then addresses trade between nations, the effects of commercial policies, and the benefits of open markets. Throughout, individual self-interest and decentralized market mechanisms are shown to coordinate production and exchange, while certain public institutions and limited government functions are argued to support economic activity.