In 1919, Walton Hamilton coined the term “institutional economics” in the manifesto presented at the American Economic Association Conference where he emphasized the foundations of a new approach to economic theory. In his own words: “The thesis here set for is that `institutional economics´ is `economic theory´.”. The American economist defended institutional economics as an economic theory in the sense of a generalized description of the economic order. The “innovative” aspect of his analysis was to consider institutions as the proper subject matter of economics. Indeed, Hamilton’s suggestion was to search for generalized statements which would serve as a point of departure for more specialized inquires within a general descriptive framework that could give unity to the investigations on the economic order. Hamilton rejected the neo-classical analysis of the market centered on general laws and prices of equilibrium and proposed a new approach where the economic order could be comprehended with its particularities of social arrangements. The relevance of institutional economics to the comprehension of contemporary economic problems – the wealth of nations and welfare in modern industrialism- is based on a new understanding of human motivations and restrictions. He highlighted the concern with the ideas of place, time and process in economics in order to avoid any mechanistic analysis. Under his perspective, the evolution of the markets is articulated to political forces that favor the creation of economic practices and norms. As a result, Hamilton presented a new conception about the rationality of the markets within a market price-system and pointed out a deep tension between the market rationality -that leads to increasing economic power- and the political nature of society. Considering the current challenges to Economics education, it is undeniable the relevance of rethinking Hamilton’s effort to re-create the subject of economics. The main supposition is that the understanding of the economic phenomena is meaningless apart from the social and political order.