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8/9/2019 Brief History of Economics
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BRIEF HISTORY OFECONOMICS
8/9/2019 Brief History of Economics
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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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BIRTH OF ECONOMICS +S +SCIENCE
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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BIRTH OF ECONOMICS +S +SCIENCE
=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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BIRTH OF ECONOMICS +S +SCIENCE
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
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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!