Author(s): David Warsh

Current Affairs & Politics

"Knowledge and the Wealth of Nations" is a stimulating and inviting tour of modern economics centred on the story of one of its most important breakthroughs. In 1980, graduate student Paul Romer tackled one of the oldest puzzles in economics. Eight years later, he solved it. This book tells the story of what has come to be called the new growth theory: the paradox identified by Adam Smith, its disappearance and occasional resurfacing in the nineteenth century, the development of new technical tools in the twentieth century, and finally the student who could see further than his teachers. New growth theory helps to explain dominant first-mover firms like IBM or Microsoft, underscores the value of intellectual property and provides essential advice to those concerned with the expansion of the economy. This revealing book takes us to the front lines of scientific research, giving us a fascinating glimpse of the essential science of economics.