brief history of economics

8/9/2019 Brief History of Economics

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BRIEF HISTORY OFECONOMICS


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PRIMITIVE ECONOMICS

Kingdoms and barangays More consum!ion !"an roduc!ion

Sys!em o# commerce is no! ye! de$e%oed

E&c"ange 'as c"ie#%y based on bar!er sys!em

Pro#i! is se%dom !"e mo!i$e o# economic ac!i$i!ies

No regu%ar mar(e!s

T"ree !yes)

Hun!ing and ga!"er economy

Nomad or as!ora% economy

and Subsis!ence* agricu%!ura% economy


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E+R,Y -ESTERN CIVI,I.+TION

+ncien! /reece P%a!o and +ris!o!%e 'ro!e abou! !"e rob%ems o# 'ea%!"0 !rade

and roer!y1 T"ey dis%i(ed commerce and be%ie$ed !"a! !o %i$eby !rade is undesirab%e1

Romans

Commerce is in#erior !o agricu%!ure1 T"e Roman Ca!"o%ic C"urc"condemned !"e imosi!ion o# usury 2in!eres! #rom %oans3

“You shall not lend upon interest to your brother, interest on

money, interest on victuals, interest on anything that is lent forinterest. To a foreigner you may lend upon interest, but to

your brother you shall not lend upon interest” 245)678493 : O%dTes!amen!

T"e 676; Code o# Canon ,a'

http://www.vatican.va/archive/ENG0839/__P52.HTMhttp://www.vatican.va/archive/ENG0839/__P52.HTM


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BIRTH OF MERC+TI,ISM

6TH cen!ury

Euroean e&ansion and imeria%ism

Hig" !ari##s? crea!ing o$erseas co%onies? #orbidding co%onies !o !rade 'i!"o!"er na!ions? monoo%i@ing mar(e!s 'i!" s!a%e or!s? banning !"e e&or! o#go%d and si%$er0 e$en #or aymen!s? #orbidding !rade !o be carried in #oreigns"is? subsidies on e&or!s? romo!ing manu#ac!uring !"roug" researc" or

direc! subsidies? %imi!ing 'ages? ma&imi@ing !"e use o# domes!ic resources?and res!ric!ing domes!ic consum!ion !"roug" non8!ari## barriers !o !rade1

Indus!ria% re$o%u!ion

-ars 'ere #oug"! #or con!ro% o$er seas and !rade rou!es

-ea%!" o# !"e coun!ry deends on !"e Auan!i!y od go%d and si%$er


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BIRTH OF MERC+TI,ISM

P"ysiocracy

Ha%# o# 6>!" cen!ury

Frenc" economis!

-ea%!" o# na!ions 'as deri$ed so%e%y #rom !"e $a%ue o# %and

agricu%!ure or %and de$e%omen! and !"a! agricu%!ura% roduc!s

s"ou%d be "ig"%y riced

Franois Duesnay 8 Tableau économique

Indi$idua%ism and %aisse@8#aire


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BIRTH OF ECONOMICS +S +SCIENCE

6;;

+dam Smi!" #a!"er o# modern economicsG

An Inquiry to the ature and !auses of the "ealth of

ations

+!!ac( on !"e ro!ec!ionis! doc!rine o# !"e mercan!i%is!s

Brie# ou!%ine o# #ree !radeG 2en!errise and #ree mar(e!economics3

Oened u #or ne' conce!s %i(e in!erna!iona% !radeG andrimi!i$e !"eory on money1


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T"omas Rober! Ma%!"us

An #ssay on the $rinciple of $opulation

,a' o# diminis"ing margina% re!urns

Na!ura% de%e!ion o# resources as ou%a!ion increases

!"e on%y 'ay !o ba%ance #ood su%y is !"e occurrence o#se$ere na!ura% ca%ami!ies0 diseases0 and 'ars1


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=a$id Ricardo

6>;6

In$en!ed !"e economic mode%

,a' o# comara!i$e ad$an!ages

Bene#i!s o# !rade are de!ermined by comara!i$e cos! 'i!"ineac" coun!ry


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o"n S!uar! Mi%%

67>J

Res!a!ed Ricardian !"oug"!

In"eri!ance s"ou%d be !a&ed


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BIRTH OF ECONOMICS +S +SCIENCE Kar% Mar&

The !ommunist %anifesto &'()(*

+as apital &'(-*

Focused on Smi!" and Ricardos !eac"ings

+dded !"eory o# sur%us $a%ueG Human a%one is o# $a%ue and cons!i!u!es !"e so%e source

o# ro#i!s1

Coined !"e !erm C%assica% EconomicsG

Mar&ism


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THE M+R/IN+, REVO,LTION

,abor !"eory o# $a%ue* Margina% L!i%i!y T"eory o#

Va%ue

6>;9s

-i%%iam S!an%ey e$ons 26>5 and 6>;63

Car% Menger 26>;63

,eon -a%ras 26>;J3

=ea%s 'i!" !"e demand

S!ressed !"e idea !"a! rices are de!ermined bybo!" su%y and demand sides


12/13

NEOC,+SSIC+, ECONOMICS

a se! o# aroac"es !o economics #ocusing on !"ede!ermina!ion o# rices0 ou!u!s0 and income dis!ribu!ionsin mar(e!s !"roug" su%y and demand1

+ssum!ions

Peo%e "a$e ra!iona% re#erences be!'een ou!comes !"a! can be

iden!i#ied and associa!ed 'i!" $a%ues1

Indi$idua%s ma&imi@e u!i%i!y and #irms ma&imi@e ro#i!s1

Peo%e ac! indeenden!%y on !"e basis o##u%% and re%e$an! in#orma!ion1

http://en.wikipedia.org/wiki/Rational_choice_theoryhttp://en.wikipedia.org/wiki/Utility_maximizationhttp://en.wikipedia.org/wiki/Profit_maximizationhttp://en.wikipedia.org/wiki/Perfect_informationhttp://en.wikipedia.org/wiki/Perfect_informationhttp://en.wikipedia.org/wiki/Profit_maximizationhttp://en.wikipedia.org/wiki/Utility_maximizationhttp://en.wikipedia.org/wiki/Rational_choice_theory


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NEOC,+SSIC+, ECONOMICS

John Maynard Keynes

Founder o# modern macroeconomics

Keynesian Economics

!"e modern cai!a%is! economy does no!

au!oma!ica%%y 'or( a! !o e##iciency0 bu! can beraised !o !"a! %e$e% by !"e in!er$en!ion and

in#%uence o# !"e go$ernmen!

brief history of economics

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