In this work I have presented a historical account of economic theories and models, from the earliest theories like mercantilism in the 16th century, to more recent theories. Theories and models depend on the approach to economics through a certain methodology. Economic methodology is the starting point for philosophy of economics. The main focus of this work is on theories which deal with economic growth and development. Adam Smith is considered to be the father of economics, and he is also the author of The Wealth of Nations, one of the most important works in history of economics. Smith is also a founder of capitalism. His account on economics is laissez faire, a free market system lead by an invisible hand. He claims that the market functions best when there is no interference by the government and its laws and when everyone in the market is led by their own interests. Smith says that such market is self-governed and always automatically leaning towards the market equilibrium, without the interference of the government. However, Karl Marx has noticed that such system is flawed because everybody is pursuing wealth. Therefore, the minority claims most of the money, while the majority get very little. Austrian economist Joseph Schumpeter was inspired by Marx's theory and he contributed to the explanation of capitalism. His theory of economic development focuses on the entrepreneur as the subject of new ideas and innovations necessary for the achievement of economic growth. On the other hand, Malthus and Ricardo have pointed to some other issues, like the population growth on a limited land. The problem for Malthus is that he predicted poverty and famine due to the population growth, however he did not manage to foresee the technological development which helped avoid this poverty. Here we may notice how the lack of certain variables or aspects leads us into creating faulty theories. After the Great Depression in the 1930's, John Maynard Keynes wrote his lengthy work called The General Theory of Employment, Interest and Money, in which he criticised Smith by claiming that the market cannot fully be free and it needs an intervention by the government in terms of fiscal and monetary policies. Keynes also put san emphasis on aggregate demand. Namely, economic growth exists due to the existence of demand, that is, the buyers who have the ability and will to buy. This view is opposed to the neoclassical approach according to which the economic growth depends on the supply, that is, the producers who create goods. Finally, the modern theoreticians, as seen in the Harrod-Domar model, put an emphasis on savings and investments, while Solow builds this theory up by creating his own model which is applicable in the long run and which includes the human capital such as technology, innovations, and ideas.