Adam Smith (16 June 1723 - 17 July 1790) was a Scottish economist, philosopher and author as well as a moral philosopher, a pioneer of political economy and a key figure during the Scottish Enlightenment, also known as ''The Father of Economics'' or ''The Father of Capitalism.'' Smith wrote two classic works, The Theory of Moral Sentiments (1759) and An Inquiry into the Nature and Causes of the Wealth of Nations (1776). The latter, often abbreviated as The Wealth of Nations, is considered his magnum opus and the first modern work of economics. In his work, Adam Smith introduced his theory of absolute advantage.

Smith studied social philosophy at the University of Glasgow and at Balliol College, Oxford. After graduating, he delivered a successful series of public lectures at the University of Edinburgh, leading him to collaborate with David Hume during the Scottish Enlightenment. Smith obtained a professorship at Glasgow, teaching moral philosophy and during this time, wrote and published The Theory of Moral Sentiments. In his later life, he took a tutoring position that allowed him to travel throughout Europe, where he met other intellectual leaders of his day.

Smith laid the foundations of classical free market economic theory. The Wealth of Nations was a precursor to the modern academic discipline of economics. In this and other works, he developed the concept of division of labour and expounded upon how rational self-interest and competition can lead to economic prosperity. Smith was controversial in his own day and his general approach and writing style were often satirised by writers such as Horace Walpole.

Foreword ix

Preface xxvii

I. Supermoney 1

1. Metaphysical Doubts, Very Short 3

2. Liquidity: Mr. Odd-Lot Robert Is Asked How He Feels 4

3. Supermoney, Where It Is: The Supercurrency 15

II. The Day the Music Almost Died 29

1. The Banks June 1970 31

2. The Brokers September 1970 50

III. The Pros 67

1. Nostalgia Time: The Great Buying Panic 69

2. An Unsuccessful Group Therapy Session for Fifteen Hundred Investment Professionals Starring the Avenging Angel 78

3. Cautionary Tales Remember These, O Brother, in Your New Hours of Triumph 95

4. How My Swiss Bank Blew [...] Million and Went Broke 110

5. Somebody Must Have Done Something Right: The Lessons of the Master 171

IV. Is the System Blown? 199

1. The Debased Language of Supercurrency 201

2. Co-opting Some of the Supercurrency 215

3. Beta, Or Speak to Me Softly in Algebra 223

Well, Watchman, What of the Night? Arthur Burns's angst; Thirteen Ways of Looking at a Blackbird; Prince Valiant and the Protestant Ethic; Work and Its Discontents; Will General Motors Believe in Harmony? Will General Electric Believe in Beauty and Truth? Of the Greening and Blueing, and Cotton Mather and Vince Lombardi and the Growth of Magic; and What Is to Be Done on Monday Morning. 235

Some Notes 287

I. Table I: Sector Statements of Saving and Investment: Households, Personal Trusts, and Nonprofit Organizations 291

II. Table II: Funds Raised, Nonfinancial Sectors 293

III. Table III: The Runoff in Commercial Paper; Summer 1970 294

IV. Portfolio of the University of Rochester 295