Now with a substantial new postscript on the financial crisis This book provides a basic introduction to the 'nuts and bolts' of capitalism. It starts by examining the classic accounts of capitalism found in the works of Adam Smith, Karl Marx, Max Weber, Joseph Schumpeter, and John Maynard Keynes. Each placed emphasis on different institutional elements of capitalism - Smith on the market's 'invisible hand'; Marx on capital's exploitation of labour; Weber on the foundations of economic rationality; and Schumpeter and Keynes on the instability that results from capitalism's essentially monetary and financial character. Drawing on these classic accounts, Ingham then offers a succinct analysis of capitalism's basic institutions and their interconnections. Market exchange, the monetary system, the enterprise, capital and financial markets, and the role of the state are dealt with in separate chapters which make use of contemporary material on the recent history of the capitalist system - including the great inflation of the 1970s and the neo-liberal backlash; the 'dot.com' bubble of the late 1990s; and the collapse of Enron and other US corporations. This revised version includes a substantial new postscript on the financial crisis of 2007-8 and its aftermath. The result is a concise, masterly and up-to-date account of the world's most powerful economic system, written in a way that is accessible to students and general readers alike.

Now with a substantial new postscript on the financialcrisisThis book provides a basic introduction to the 'nuts and bolts'of capitalism. It starts by examining the classic accounts ofcapitalism found in the works of Adam Smith, Karl Marx, Max WeberJoseph Schumpeter, and John Maynard Keynes. Each placed emphasis ondifferent institutional elements of capitalism - Smith on themarket's 'invisible hand'; Marx on capital's exploitation oflabour; Weber on the foundations of economic rationality; andSchumpeter and Keynes on the instability that results fromcapitalism's essentially monetary and financial character.Drawing on these classic accounts, Ingham then offers a succinctanalysis of capitalism's basic institutions and theirinterconnections. Market exchange, the monetary system, theenterprise, capital and financial markets, and the role of thestate are dealt with in separate chapters which make use ofcontemporary material on the recent history of the capitalistsystem - including the great inflation of the 1970s and theneo-liberal backlash; the 'dot.com' bubble of the late 1990s; andthe collapse of Enron and other US corporations. This revisedversion includes a substantial new postscript on the financialcrisis of 2007-8 and its aftermath. The result is a concisemasterly and up-to-date account of the world's most powerfuleconomic system, written in a way that is accessible to studentsand general readers alike.

Introduction 1Part I Classical theories of capitalism 51 Smith, Marx and Weber 72 Schumpeter and Keynes 363 The basic elements of capitalism 52Part II The institutions 634 Money 655 Market exchange 926 The enterprise 1197 Capital and financial markets 1478 The state 1759 Conclusions 204Postscript: the financial crisis and its aftermath 227Notes 265References 290Index 304