Top 10 Most Influential Economists in History

It is no secret that many economists perform commendable work, and a select few stand out as the most influential economists, leaving an indelible mark on financial theory that extends across various realms of social history.

The world, as we know it today, has been shaped by professionals from all walks of life, for some it can be quite useful to check Cisco CCNA 200-301: Practice Test Dumps Questions as they can further develop professionals’ potential. Read on to learn more about the most influential economists in history.

We’ll look at 10 of the most influential economists of all times as we delve into their profound impact on society.

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Top 10 Most Influential Economists

1. Adam Smith (1723-1790)

Adam Smith, a Scottish philosopher who transitioned into a political economist during the Scottish Enlightenment, stands as one of the most influential economists in history. Renowned for his works, “The Theory of Moral Sentiments” (1759) and “An Inquiry into the Nature and Causes of the Wealth of Nations” (1776), commonly known as “The Wealth of Nations”, Smith’s contributions significantly shaped the foundations of modern academic-discipline economics.

Entering the University of Glasgow at a mere 15 years old, Smith initially delved into moral philosophy, undergoing a transformation from his initial Christian focus to a more Deist perspective (although subject to challenge).

The profound impact of Smith’s arguments against mercantilism and his advocacy for free trade reverberates through history, challenging prevailing practices such as protectionism, tariffs, and gold-hoarding in the mid-18th century.

Often hailed as “the father of modern economics”, Smith’s ideas, particularly in fostering free and open trade, have played a pivotal role in shaping the global economic landscape. 

Imagine a world without the encouragement of free trade and where the norm was the hoarding of hard assets (mercantilism)—economic life would undoubtedly be considerably less vibrant.

In a somewhat enigmatic conclusion to his life, Smith chose to destroy most of his manuscripts, leaving the world with only fragments of his final thoughts and theories.

2. David Ricardo (1772-1823)

David Ricardo, an English economist, stands as one of the most influential economists in history. Born into a large Portuguese Jewish family, with 17 siblings, Ricardo’s economic insights emerged from a hands-on background, in stark contrast to Adam Smith.

Commencing work on the London Stock Exchange at the young age of 14 alongside his father, Ricardo quickly found success in stock and real estate speculation. Despite the delayed onset of his interest in economics, sparked by reading Smith’s “The Wealth of Nations” in 1799, Ricardo made a significant impact.

Entering British Parliament in 1819, representing an Irish borough, Ricardo’s pivotal work, “An Essay on the Influence of a Low Price of Corn on the Profits of Stock” (1815), advocated for the repeal of corn laws to promote wealth distribution. Later on came “Principles of Political Economy and Taxation” (1817).

Ricardo’s enduring legacy lies in his advocacy for nations specializing for the greater good and his vehement opposition to protectionism. However, his most notable contributions revolve around his insights into rents, taxation, wages, and profits, challenging the notion that landlords accumulating wealth at the expense of laborers was beneficial for society.

Despite a relatively short life, Ricardo passed away at the age of 51 in 1823, leaving an indelible mark on the field of economics.

3. Alfred Marshall (1842–1924)

Alfred Marshall, a London-born economist, holds a significant place among the most influential economists in history. Although not known for championing radical theories, Marshall’s academic journey took an unexpected turn from his initial desire to join the clergy, guided by his success at Cambridge.

Marshall’s distinctive contribution lies in his endeavor to elevate economics from philosophy to science by applying rigorous mathematics. While not as widely recognized as some of his counterparts, Marshall’s impact is undeniable.

His work, “Economics of Industry” (1879), became a staple in English curricula, reflecting his commitment to making economic concepts accessible to the general populace.

A testament to Marshall’s dedication to scientific rigor is found in his seminal work, “Principles of Economics” (1890), crafted over nearly a decade. This masterpiece stands as his most important work, credited for perpetuating key economic concepts such as supply and demand curves, marginal utility, and marginal production costs, integrating them into a unified model.

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4. John Maynard Keynes (1883-1946)

John Maynard Keynes, often hailed as the “giant economist” by historians, holds a distinguished position among the most influential economists in history. Standing at an imposing six feet six inches, the British economist’s academic journey was closely tied to Alfred Marshall, whose supply and demand curves served as the foundation for much of Keynes’ groundbreaking work.

Keynes is prominently recognized for his advocacy of government spending and monetary policy as effective measures to counteract the adverse impacts of economic recessions, depressions, and booms.

His significant contributions extended beyond theoretical frameworks to practical involvement in shaping credit terms during World War I and representing Britain at the Versailles peace treaty.

The stock market crash of 1929 nearly bankrupted Keynes, but he managed to recover his financial standing. In 1936, he authored his seminal work, the “General Theory of Employment, Interest and Money”.

This groundbreaking publication proposed government intervention to stimulate consumption and investment, aiming to alleviate the global Great Depression that gripped the world at the time. Regarded as the catalyst for modern macroeconomics, Keynes’ ideas continue to shape economic thought and policy to this day.

5. Milton Friedman (1912-2006)

Milton Friedman, one of the most influential economists of the 20th century, emerged as the last of four children born to Jewish immigrants from Austria-Hungary. His academic journey led him to earn a Bachelor of Arts degree at Rutgers and a Master’s at the University of Chicago, where he subsequently contributed to the New Deal—a series of programs initiated by US President Franklin D. Roosevelt to address the challenges posed by the Great Depression.

While Friedman supported the New Deal overall, his stance on most government programs and price controls reflected a distinct opposition.

In contrast to Keynes, Friedman espoused a more laissez-faire approach, advocating for the minimization of government intervention in a free market.

This philosophy laid the groundwork for his influential book, “Capitalism and Freedom” (1962), where he championed free markets and pioneered the concept of modern currency markets detached from precious metals standards, emphasizing that the value of money is determined by public perception.

Friedman’s ideas found resonance even during the Cold War, with his works circulating underground and influencing the development of consumption-tax-based economies. He believed that introducing capitalism to totalitarian countries would contribute to societal improvement and enhanced political freedom.

Awarded the Nobel Memorial Prize in Economic Sciences in 1976, Friedman strongly emphasized the connection between money supply and inflation.

Notably, his 1988 speech to Chinese students and scholars in San Francisco, lauding Hong Kong as the epitome of laissez-faire policies, was considered a direct influence on China’s subsequent economic reforms. Milton Friedman’s legacy endures as a beacon of free-market principles and economic thought.

6. Abhijit Banerjee and 7. Esther Duflo

Abhijit Banerjee, born into a family of economists in Mumbai, India, pursued his economics education in India and later earned his Ph.D. from Harvard University. Currently teaching at MIT, he co-founded the Poverty Action Lab in 2003 alongside his wife, French-born economist Esther Duflo.

The Poverty Action Lab gained renown for its innovative experimental approach to developmental economics, using randomized trials to assess the impact of government spending on various policies, such as teaching materials and vaccinations.

Banerjee and Duflo, awarded the Nobel Prize for Economics in 2019, have significantly influenced the field with their evidence-based methodology. Their experiments, including one on Universal Basic Income in Kenyan villages, demonstrated a commitment to measuring the real-world effects of economic policies.

In their latest endeavor, the Poverty Action Lab focuses on funding projects to address challenges within the U.S. Healthcare System.

8. Nouriel Roubini

Nouriel Roubini, born in Iran to an Orthodox Jewish family and self-described as a “global nomad”, is a prominent economist with a diverse background. With an economics B.A. from Milan and a Ph.D. from Harvard University, Roubini teaches at NYU’s Stern School of Business.

His extensive career includes contributions to economic policy-making at institutions such as the World Bank, International Monetary Fund, and the Federal Reserve, as well as roles in the White House Council of Economic Advisors during the Clinton administration.

Roubini gained widespread recognition for accurately predicting the 2008 financial crisis in a 2006 position paper for the IMF, earning him the moniker “Dr. Doom”.

Beyond his forecasting prowess, Roubini is notable for his critical stance on bitcoin and blockchain technology during a time of widespread optimism about these innovations.

9. Hernando de Soto

Hernando de Soto, born in Peru and later becoming a key figure in the country’s neoliberal economic reforms, spent much of his childhood in Europe following a military coup in Peru. In 1979, he founded the Institute for Liberty and Democracy (ILD), a neoliberal think tank influenced by Friedrich Hayek and Milton Friedman.

The ILD, backed by U.S. government funding, advocated for free-market policies and legislative measures addressing informal property relations and arbitration in Peru.

While the ILD’s popularity waned in Peru, de Soto continued to champion free-market reforms, impacting the entire Western hemisphere. His work inspired the Washington Consensus and contributed to the creation of NAFTA.

Acknowledged by U.S. Presidents Ronald Reagan and Bill Clinton, de Soto’s advocacy for free-market principles remains influential.

10. Janet Yellen

Janet Yellen, born in Brooklyn to a family of Polish-descended Jews, pursued her economics education at Brown and Yale University. Throughout her research career, Yellen focused on labor markets and the effects of government policy, aligning with a Keynesian economic philosophy.

Her advocacy includes support for economic stimulus, a moderate stance on inflation, and reforms to certain government entitlements.

In 1994, Yellen joined the Federal Reserve Board of Governors, later becoming Chair of the Council of Economic Advisors. Her significant roles within the Federal Reserve culminated in her appointment as Chair from 2014 to 2018.

In 2021, President Biden appointed Yellen as the U.S. Treasury Secretary, marking another milestone in her influential career.

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