Chapter 11 Political Economy
Chapter 11 Political Economy
11.1 DEVELOPMENT OF ECONOMIC THEORY pre-eighteenth century a Mercantilism, Liberality
11.1 DEVELOPMENT OF ECONOMIC THEORY ◼ pre-eighteenth century ◼ Mercantilism, Liberality
11.1 DEVELOPMENT OF ECONOMIC THEORY pre-eighteenth Mercantilism century seventeenth Liberality century o Adam Smith nineteenth Classical economics century o John Stuart Mill o Alfred marshall
11.1 DEVELOPMENT OF ECONOMIC THEORY ◼ pre-eighteenth century ◼ seventeenth century ◼ nineteenth century ◼ Mercantilism ◼ Liberality Adam Smith ◼ Classical economics John Stuart Mill Alfred Marshall
11.1.1 Classical Economics Western Europe Late1600s-1800s Classical economics focused on the outcomes from the sum of rulers of nations. Freedom in the market place was efficient and e individual decisions, rather than thinking only about the actions of the desirable Representatives o Adam smith David ricardo o John stuart mill Keys o Smith's notion of the role of specialization in driving economic growth With“ invisible hand o Ricardo's analysis of comparative advantage, and the consequent need for free trade o Mill's argument for the need for a high degree of individual freedom, both for economic and moral reasons
11.1.1 Classical Economics ◼ Western Europe ◼ Late 1600s – 1800s ◼ Classical economics focused on the outcomes from the sum of individual decisions, rather than thinking only about the actions of the rulers of nations. Freedom in the market place was efficient and desirable ◼ Representatives Adam Smith David Ricardo John Stuart Mill ◼ Keys Smith’s notion of the role of specialization in driving economic growth with “invisible hand”. Ricardo’s analysis of comparative advantage, and the consequent need for free trade. Mill’s argument for the need for a high degree of individual freedom, both for economic and moral reasons
11.1.2 Marxian Economics Communist manifesto Capital- there is inevitable change to social and economic system o affirmation( thesis) o negation(antithesis) o negation of negation
11.1.2 Marxian Economics ◼ Communist Manifesto ◼ Capital – there is inevitable change to social and economic system affirmation (thesis) negation (antithesis) negation of negation
11.1.3 Neo-classical Economics Basis for the microeconomics Representatives o William Jevons o Carl menger o Leon walras o Alfred marshall Bases Keys
11.1.3 Neo-classical Economics ◼ Basis for the microeconomics ◼ Representatives William Jevons Carl menger Leon Walras Alfred Marshall ◼ Bases ◼ Keys
11.1. 4 Keynesian Revolution a the General Theory of employment a Interest and Money a The General Theory GDP=C++G+X-M
11.1.4 Keynesian Revolution ◼ the General Theory of Employment ◼ Interest and Money ◼ The General Theory ◼ GDP = C + I + G + X - M
11.1.5 Revival of Neo-Classical Economics Policies
11.1.5 Revival of Neo-Classical Economics ◼ Policies