This book provides a comprehensive and analytical overview of the development of economic theory, from its beginnings at the end of the Middle Ages up to contemporary contributions. Traditional theories are presented as living matter, and modern theories are presented as part of a historical process and not as established truths. In this way, the book avoids the dangerous dichotomy between pure historians of thought who dedicate themselves exclusively to studying facts, and pure theorists who are interested in the evolution of the logical structure of theories. The second edition contains several changes and additions. The authors give due consideration to the ‘civil economy' perspective developed during Humanism and the Renaissance. The section on Adam Smith has been considerably extended and improved. The treatment of the post-Keynesian approach has been separated from ‘new Keynesian macroeconomics'. Finally, a new chapter has been added to review the most recent developments in the economic discourse in the light of globalisation and the new technological trajectory. New to this Edition: • Due consideration is given to the ‘civil economy' perspective • The chapter on Adam Smith has been considerably extended and improved • New chapter deals with the most recent developments in the economic discourse in the light of globalisation and of the new technological trajectory • The treatment of the post-Keynesian approach has been separated from the ‘new keynesian macroeconomics'