Module Title: History of Economic Thought

Module code:             ECH 201

Programme:               BA Economics +, BA (Hon) Economics       

Credit Value:             12

Module Tutor:           Dr. Anil Dogra

General Objectives:

The academic aim of this model is to provide theoretical knowledge of the different perspectives of various schools of economics and to make students conversant with different assumptions and polices adopted by different schools of economics. Furthermore, importance would be given to promote the skill of the students to construct economic model by gaining knowledge from different economic theories and model of different economists over the period of time. To make students conversant with the changing importance of economic factors in the economic development

Learning Outcomes

At the end of this module, the students are expected to be able to:

·         Indicate the changing trends in economic thoughts of the different schools of economics

·         Critically evaluate all economic theories and thoughts given by different schools of economics.

·         Develop an understanding and ability to devise new ideas in all realms of economics.

·         Discuss and understand some of the debatable points found in different theories of economics.

·         Discuss the evolution of different economic theories from Physiocrats to modern economics thoughts.

·         Explain the economic decisions of the rival economic unit by using game theory.

Learning and teaching approach:

Lectures (60 hours in 15 weeks)

Tutorials (15 hours in 15 weeks)

Discussions (10 hours in 15 weeks)

Assignments (20 hours in 15 weeks)

Assessment:

Semester end examination (60%)

Assignments (20%)

Group Works (20%)

Subject Matter

1.      Economic Thought before Adam Smith-Science, Ideology and Paradigms of history of economic thought, economics of mercantilism, Precursors to Adam Smith (Themes), contributions of Physiocracy.                                         (8 hours)

2.      Classical Theories of Value, Growth and Distribution-Smith and Ricardo on the theory of value, later subjectivist theories of value, classicalist on the determinant of economic growth, classical theory of income distribution            (7 hours)

3.      Classical Economics on Money, Banking and Policy-classical monetary theory, classical public finance, Say’s Law, ‘Gults’ and Business cycle, classical economic policy in theory in practice.                                                     (7 hours)

4.      Marxist Economics-Classical or Not? – Marx and labour theory of value, Marxs’ theory of money, Marx on distribution, Marxs’ theory of capital accumulation and crisis.                                                                                  (8 hours)

5.      Marginalist, Marshal and Late Neoclassical Economist- marginalist and Walrasian general equilibrium analysis, late Marshall on money and credit, Wicksel and Fisher on interest rate, Schumpeter, Fisher and Kalecki on business cycle. (7 hours)

6.      Keynes Theory of Money, Investment and Cycles-Keynes vs Say’s Law and Classical economics, Keynes theory of investment, Keynes on money and speculation, Keynes on business cycle.                                                                       (8 hours)

7.      Neoclassical synthesis and monetarist challenge- Hicks-Hansen-Samuelson IS-LM transformation, Philip curves debate, Friedman’s fundamental monetarist propositions, Critiques of monetarism.                                     (10 hours)

8.      Economic Thought at Historical Cross Roads-Rational expectations, real business cycles and efficient market, Hymen Minsky’s financial instability hypothesis, understanding epic recession and financial crisis.                  (5 hours)

Reading List

Essential Reading

1. O'Brien, D. P., & O'Brien, D. P. (2004). The classical economists revisited. Princeton, NJ: Princeton University Press.
2. Thorton, M. (1996). Economic thought before Adam Smith: An Austrian perspective on the history of economic thought, volume I / classical economics: An Austrian perspective on the history of economic thought, volume II. Southern Economic Journal, 63(1), 283-283
3. Keynes, J. M. (2005). The general theory of employment, interest, and money. Amherst, N.Y: Prometheus Books.
4. Friedman, M., Savage, L. J., & Becker, G. S. (2007). Milton Friedman on economics: Selected papers. Chicago: University of Chicago Press.
5. Medema, S. G., & Samuels, W. J. (2003). The history of economic thought: A reader. London: Routledge.
6. Foley, D. K. (1986). Understanding capital: Marx's economic theory. Cambridge, Mass: Harvard University Press.

Suggested reading:

1.      Blaug, M. (1997), Economic Theory in Retrospect A history of thought from Adam.

2.      Wennerlind, C. (2005). David hume's monetary theory revisited: Was he really a quantity theorist and an inflationist? The Journal of Political Economy, 113(1), 223-237.

3.      Waller, W. (2002). Value theory and economic progress: The institutional economics of J. fagg foster. Journal of Economic Issues, 36(1), 209-211.

4.      Gootzeit, M. J. (2001). The evolution of the sophisticated quantity theory: Marshall vs. wicksell on transaction demand. The American Journal of Economics and Sociology, 60(4), 775-793.

5.      Fackler, J. S., & Parker, R. E. (2005). Was debt deflation operative during the great depression? Economic Inquiry, 43(1), 67-78.

(Updated June, 2013)