Study Of Adam Smith’s Economic Policy Thought And Its Influence

China has been in the crucial period of transforming the mode of economicdevelopment. It has become the primary task of development to establish a healthy,perfect market mechanism in China, but with the completion of the new top-leveldesign, many problems have emerged at the same time, such as the lack of marketdemand, large power of the government’s function, the information asymmetry andinflation. Accordingly, many Chinese will doubt about how to continue to deepenthe socialist reform in the new century. This essay takes the modern "father ofeconomics", Adam Smith’s theory of economic policy as the theme. Make a researchon how the Smith’s theory help capitalism develop, and at the same time, I want tofind some enlightenments to help china develop.Smith is considered as the "father of economics", because he had established theperfect economic theory system. When mercantilism ends, the publication of <Thetheory of Moral Sentiments> and <The Wealth of Nations> helped capitalismdevelop fast. The British economy was at the forefront of the world at that time.Smith’s economical policy thought doesnot only namely sum up the thoughts of ourpredecessors, but also integrate his personal view, and he provides a theoretical basisfor later economists. It makes the Smith’s theory inherit and develop better.The essay put the history process as the main line, from the beginning ofmercantilism to the ending of classicalism. Then it discussed about effects of Smithfor contemporary economists’ thoughts. It interpreted the source, development andinfluence for the Smith’s thoughts of economical policy. The content of Smith’seconomical policy is too wide, so the essay will interpret three important points, namely "Economic Man""Invisible Hand""Theory of International Trade". Lately,when searching the influence of Smith’s economic theory at the classical time, it willmainly explain the connection of three standard persons, namely Ricardo Say. In thecontemporary economists, I choose the proletariat leader Marx, the new classicalschool economist Marshall, Keynes school economist Keynes and new liberalismschool Freedman to illustrates the connection of Smith’s thoughts of economic policy.Finally, based on the Smith’s economical theory of understanding, I list threepersonal suggestions for the deepening of China’s socialist reform and development.