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Syllabus History of Economic Thought Instructor: Julius Horvath, N13

Syllabus History of Economic Thought Instructor: Julius Horvath, N13

Syllabus

History of Economic Thought Instructor: Julius Horvath, N13, Room 604; e-mail appointment, [email protected] Credits: 2 credits (4ECTS) Term: Sprint 2017-2018 Course level: MA Prerequisites: No specific prerequisites needed.

Course description: This course is accessible to anyone with an under-graduate background in social sciences or . This course presents review of the history of economic thinking and economic analysis. Course discusses also sociological and ethical aspects of the development of economics as science, and ideology. The course covers the following topics: Introduction, Great Religions and the Origins of Economic Thought; Greek and Medieval Thought ; Transformation Period; Western Europe before Smith; Smith, Ricardo, Marx; Emergence of Macro-economics, Veblen, Keynes, Schumpeter; Friedman, Hayek; Non-Mainstream Thought, Central European economic thought.

Learning outcomes: The main goal of this course is to provide students with understanding of historical evolution of economic thought. In addition students are also led to formulate their own research question in the topic of their . Student will to a smaller degree be exposed also to some episodes of as understanding of what was going on in the in past helps to understand how people conceptualized the vision of the real and monetary economy. Students would be able to understand some historically important articles and concepts of the and economics. They acquire a broad understanding of the evolution of economic thinking in the period of more than two thousand years. The emphasis is on societal milieu however issues relevant to policy are also considered. By the end of this course student will be able to evaluate different streams of economic thinking as well some personalities who had an impact of history of economic thought.

Reading list: Individual articles in A Companion to the History of Economic Thought, edited by Warren J. Samuels, Jeff E. Biddle and John B. Davis are very useful for understanding the development of ideas presented in the course. Detailed list of articles and books used is below. Assessment: 20% of the final grade; presence in the course; 80% of the final grade; final paper, maximum 10, minimum 6 pages; 1.5 space, topic approved by the instructor; students topic is either the evolution of some concepts in the economic theory, or topic should deal with a less known or forgotten (social thinker) from the past.

Course e-learning site: http://ceulearning.ceu.hu/

Course Schedule and General Literature for Each Session

Introduction On Power of Ideas; Robbins-Schumpeter-Stigler on Teaching History of Thought; History of the Terms Oikonomike, Economics, Political Economy; To Whom Speak To; Stories of Economists; History of Economic Thought as an Intellectual Discipline; How Important are Biographical and Context Elements in History of Economic Thought; Simplifications and Pedagogy; Collective Work and Individuals;

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Literature Robbins, Lionel, A History of Economic Thought, The LSE Lectures, edited by Steven G. Medema and Warren J. Samuels, Princeton University Press1998, Chapter 1-2 Spiegel, Henri William, The Growth of Economic Thought, Duke University Press, Durham and London 1991, Third edition, Chapter 1 Backhouse, Roger, E. “Lives in Synopsis: The Production and Use of Short Biographies by of Economics,” History of Political Economy, 39, 2007, pp. 51-75 O’Brien, D. P., History of Economic Thought as an Intellectual Discipline, Edward Elgar, 2007 Schumpeter, Joseph Alois "Science and Ideology", American Economic Review 39, 2, March, 1949 Dimand, Robert W., The Creation of Heroes and Villains as a Problem in the History of Economics, History of Political Economy, 2007, 39, 76-95

Economic Aspects in Traditional Religions

Rise of Civilization; Ancient Thought; Old Testament and New Testament on Work ; Old Testament and New Testament on Ownership; Early Christian Attack on Wealth and ; Old Testament and New Testament on Care for Poor; Old Testament and New Testament on Right and Just , On Specialization, On Interest;

Literature Price, B. B. ed., , 1997 Gordon, Barry, The Economic Problem in Biblical and Patristic Thought, E. J. Brill, 1989, Henri William Spiegel The Growth of Economic Thought, Duke University Press, Durham and London 1991 Finley, M.I. The Ancient Economy, University of California Press, Berkeley and Los Angeles 1973

Greeks, ,

Greek Thinkers: Homer, , , Socrates; Plato’s Blueprint for an Ideal State; Plato’s Economics; Aristotle’s Economic Writings; Use and Exchange ; Aristotle on Private Property; Natural and Just; Aristotle On Money, On Commerce and Justice; Aristotle on Acquisition of Wealth;

Literature Schumpeter, Joseph A., History of Economic Analysis, Edited from Manuscript by Elizabeth Boody Schumpeter , New York, Oxford University Press, 1954, Fifth printing 1963, Chapter 1, Graeco- Roman Economics, Aristotle, , Book I, Parts I-XI, Book II Part V, in History of Economic Thought: A Reader, edited by Steven G. Medema and Warren J. Samuels, Routledge, 2003, pp. 5-13 Aristotle, Nicomachian Ethics, Book V, Part 5, in History of Economic Thought: A Reader, edited by Steven G. Medema and Warren J. Samuels, Routledge, 2003, pp. 14-15 Gordon, Barry, Aristotle and Hesiod: the Economic Problem in Greek Thought, Review of Social Economy, Vol LXIII, September 2005, 395-404 Meikle, Aristotle’s Economic Thought, 1995, Clarendon Press, Oxford Petrochilos, George A., Kalokagathia: The Ethical Basis of Hellenic Political Economy and Its Influence from Plato to Ruskin and Sen, History of Political Economy, 34:4, 2008

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Soudek, J. ‘Aristotle’s Theory of Exchange: an Inquiry into the Origin of Economic Analysis,” Proceedings of the American Philosophical Society, 96, 1952, Finley, M. I., Aristotle and Economic Analysis, Past and Present, No. 47, 1970, May pp. 3-25

Medieval Economic Thinking

The Early Christianity; Wealth, Beggary and Sufficiency: the Mendicant Solutions; Help the Poor: Get Rid of Superfluities; Private Property versus Communal Property; Scholastic Thought; Just Price in Scholastic Economics; St. Thomas Acquinas on Commerce, Property, Fraudulent Behavior, and Usury;

Literature Schumpeter, Joseph A., History of Economic Analysis, Edited from Manuscript by Elizabeth Boody Schumpeter , New York, Oxford University Press, 1954, Fifth printing 1963, Chapter 2, The Scholastic Doctors and the Philosophers of Natural Law, Aquinas, Thomas, Summa Theologica, Second Part of the Second Part, Questions 77 and 78, 1267-1273, in History of Economic Thought: A Reader, edited by Steven G. Medema and Warren J. Samuels, Routledge, 2003, pp. 18-29 Grice-Hutchinson, Majorie, Economic Thought in Spain, Edward Elgar, 1993; Chapter One: Contributions of the to Monetary Theory as a Result of the Discovery of the New World, pp. 1-23 Murray, Gilbert, Stoic, Christian and Humanist, London: C.A. Watts & Co. , George Allen & Unwin, First published in 1940, Second edition 1950 Neves des, Joao Cesar, Aquinas and Aristotle’s Distinction on Wealth, History of Political Economy, 2000, 32:3, Wood, Diana, Medieval Economic Thought, Cambridge University Press 2002 Ghazanfar, S.M. ed., Medieval Islamic Economic Thought, Routledge/Curzon, 2003 Lowrey, S.T. and B. Gordon eds. Ancient and Medieval Economic Ideas and Concepts of Social Justice, 1997 das Neves, Joao Cesar, Aquinas and Aristotle’s Distinction on Wealth, Historical of Political Economy, 2000, 32:3, 649-657

The Transformation Period

Modernity Begins; The Principle of Countervailing Passions; Money Making and Commerce; The Role of Providence in Social and Economic Matters before ; XVII-XVIII Century Providential Elements in Economics; Whether Providence Favors among Nations; Providence and Observed Inequality;

Literature: Hirschman, Albert, The Passions and the , Political Arguments for before Its Triump, Princeton University Press 1977, Third printing with corrections 1981 Viner, Jacob, The Role of Providence in the Social Order, An Essay in Intellectual History, Jayne Lectures for 1966, the American Philosophical Society, Princeton, New Jersey, Princeton University Press Mercantilists

Political Economy Emerges; Eminent Mercantilists; Mercantilist Theory; Jean Bodin; Mercantilist’ Monetary Theories; Reasons for Wanting More Bullion;

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Literature Viner, Jacob, Studies in the Theory of International Trade, 1937 Munn, Thomas, England’s Treasures by Forraign Trade or the Ballance of our Forraign Trade is the Rule of our Treasure, 1664, in History of Economic Thought: A Reader, edited by Steven G. Medema and Warren J. Samuels, Routledge, 2003, pp. 32-44 Locke, John, Of Civil Government, 1690, in History of Economic Thought: A Reader, edited by Steven G. Medema and Warren J. Samuels, Routledge, 2003, pp. 59-77

Birth of : Petty, Law, Cantillon, Hume, Turgot, Quesnay

Petty’s Medical Beginnings; Idea of the Royal Society, Petty’s Work; Petty’s National Income Concept; John Law’s Life; Law’s Contribution to Macroeconomics; John Law and the Mississippi System; Cantillon’s Life; Beginning of Modeling; Cantillon’ Effect;

Literature

Murphy, Antoin E. The Genesis of Macroeconomics, New Ideas from Sir William Petty to Henry Thornton Oxford University Press 2009 Quesnay, Francois, Tableau Economique, in History of Economic Thought: A Reader, edited by Steven G. Medema and Warren J. Samuels, Routledge, 2003, pp. 97-101 Turgot, Anne Robert Jacques, Reflections on the Formation and of Wealth, 1770, in History of Economic Thought: A Reader, edited by Steven G. Medema and Warren J. Samuels, Routledge, 2003, pp. 104-116 Petty, William, A Treatise of Taxes and Contributions, 1662, in History of Economic Thought: A Reader, edited by Steven G. Medema and Warren J. Samuels, Routledge, 2003, pp. 47-56 Cantillon, Richard, Essay on the Nature of Commerce in General, 1755, in History of Economic Thought: A Reader, edited by Steven G. Medema and Warren J. Samuels, Routledge, 2003, pp. 79-94 Hume, David, Political Discources, 1752, in History of Economic Thought: A Reader, edited by Steven G. Medema and Warren J. Samuels, Routledge, 2003, pp. 135-152

Adam Smith

Life; Hume-Smith Friendship; Smith on ; Smith on Government; Contribution to Political Philosophy; Smith on Value, Market and ; Productive and Unproductive Labor; Books of Wealth of Nations;

Literature Heilbroner, Robert, The Worldly Philosophers, Sixth edition, Penguin Books, chapter 3 Butler, Eamonn, Adam Smith – a Primer, The Institute of Economic Affairs, 2007 Smith, Adam, An Inquiry into the Nature and Causes of the Wealth of Nations, 1776, in History of Economic Thought: A Reader, edited by Steven G. Medema and Warren J. Samuels, Routledge, 2003, pp. 156-179 Smith, Adam, An Inquiry into the Nature and Causes of the Wealth of Nations, Book I; Book II, especially chapters I, III, and V

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Nathan Rosenberg, “Some Institutional Aspects of the Wealth of Nations,” Journal of Political Economy 68(6): 557-570 (December 1960) Richardson, G.B. "Adam Smith on Competition and Increasing Returns," in Andrew S. Skinner and Thomas Wilson, eds., Essays on Adam Smith. Oxford: Clarendon Press, 1975 R.H. Campbell and A.S. Skinner, Adam Smith, Croom Helm, London and Canberra, 1982

Classical Economists, Ricardo, Malthus, Hume

Ricardo’s Principles of Political Economy; Ricardo on Rent; Malthus on Population; Ricardo and Malthus on Under-Consumption; Hume’s Specie Flow Mechanism; Bullion Controversy; Say’s Law,

Literature Malthus, Thomas Robert, An Essay on the Principle of Population, 1798, in History of Economic Thought: A Reader, edited by Steven G. Medema and Warren J. Samuels, Routledge, 2003, pp. 196-207 Ricardo, David, The High Price of Bullion, 1810, in History of Economic Thought: A Reader, edited by Steven G. Medema and Warren J. Samuels, Routledge, 2003, pp. 237-244 Ricardo, David, On the Principles of Political Economy and Taxation, 1817, in History of Economic Thought: A Reader, edited by Steven G. Medema and Warren J. Samuels, Routledge, 2003, pp. 259-290 Rostow, W.W., Theorists of from David Hume to the Present Oxford University Press, New York, Oxford 1990 , The Principles of Political Economy and Taxation, esp. chapters 1-8, 19-21, 26, 30-31. Dorfman, Robert, " and David Ricardo," Journal of Economic Perspectives 3(3): 153-164 (1989) Baumol, William, J. Say’s Law, Journal of Economic Perspectives—Volume 13, Number 1—Winter 1999— Pages 195–204

Utopians, Marx and Radicals

Utopian Socialists; Marx’ Life; Communist Manifesto; Dialectical Materialism; Marx on Classical Economists; Struggle between Classes; Marx’ Tone of Writing; Das Kapital; Marx on Movement of the Capitalist Economy; Schumpeter’s Interpretation of Marx; Marx’ Interpretation of History;

Literature Heilbroner, Robert, The Worldly Philosophers, Sixth edition, Penguin Books, chapter 5 Blaug, Marc, Economic Theory in Retrospect, Fifth edition, 1997, Cambridge University Press, Chapter 7 Heilbroner, Robert, The Worldly Philosophers, Sixth edition, Penguin Books, chapter 6 Marx, Karl, A Contribution to the Critique of Political Economy, 1859, in History of Economic Thought: A Reader, edited by Steven G. Medema and Warren J. Samuels, Routledge, 2003, pp. 375-377 Marx, Karl, Das Kapital, 1867, in History of Economic Thought: A Reader, edited by Steven G. Medema and Warren J. Samuels, Routledge, 2003, pp. 378-407 Schumpeter, Joseph A., Capitalism, Socialism and , Harper and Row Publishers, New York, 1942, third edition in 1950 Marx, Karl and , Communist Manifesto (1848), Sections 1 and 2 Lerner, A. P., Economic Theory and Socialist Economy, Review of Economic Studies, 1943, 51-61

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Lerner, A.P. Economics of Control: Principles of Economics, New York, Macmillan, 1944 Dobb, Maurice, Economic Theory and Socialist Economy: a Reply, Review of Economic Studies, 2, 1943, 144-51 Dobb, Maurice, Economic Theory and the Problems of a Socialist Economy, Economic Journal, 43, December 1933, 585-598 Lerner, A.P., A Rejoinder, Review of Economic Studies, 2, 1943, 152-154 Boyer, George R., The Historical Background of the Communist Manifesto, Journal of Economic Perspectives—Volume 12, Number 4—Fall 1998—Pages 151–174

German Historical Thinking

Johann Gottlieb Fichte, , Goethe’s Faust, Wilhelm Roscher; Older Historical school and ; Gustav Schmoller;

Caldwell, Bruce, Chapter 2 The German Historical School , in Bruce Caldwell, An Intellectual Biography of F.A. Hayek, The University of Chicago Press, 2004 Gilles Campagnolo Criticism of Classical Political Economy, Menger, Austrian economics and the German Historical School Routledge Studies in the History of Economics, 2010, Routledge Balabkins, N. 1988. Schmoller in Tsarist Russia. Journal of Institutional and Theoretical Economics 144, 581– 90. Barnett, V. 2004. Historical political economy in Russia, 1870–1913. European Journal of the History of Economic Thought 11, 231–53. Dorfman, J. 1955. The role of the German Historical School in American economic thought. American Economic Review 45, 17–28. Heinonen, V. 2002. The Influence of the German Historical School in Finnish economic thought around the turn of the century. In Economic Thought and Policy in Less Developed Europe: The Nineteenth Century, ed. M. Psalidopoulos and M. Mata. London: Routledge. Menger, Carl, “On the Origin of Money,” The Economic Journal 2(6): 239-255, June 1892 Hicks, John, “Revolutions” in Economics, in Method and Appraisal in Economics, edited by S. Latsis, Cambridge University Press, 1976 Campagnolo, Gilles, Criticism of Classical Political Economy, Menger, Austrian Economics and the German Historical School Routledge Studies in the History of Economics, 2010, Routledge

Keynes

Keynes Life; On Communist Russia; On Depression; Intellectual and Human Characterization; Cambridge Civilization;

Literature Marshall, Alfred, Principles of Economics, eighth edition, esp. Book I, chapters I and II; Book III; and Book IV; skim Book V., in History of Economic Thought: A Reader, edited by Steven G. Medema and Warren J. Samuels, Routledge, 2003, pp. 504-521 Heilbroner, Robert, The Worldly Philosophers, Sixth edition, Penguin Books, chapter 9. Keynes, John Maynard, "The General Theory of Employment," Quarterly Journal of Economics 51, May 1937

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Eichengreen, Barry, “Still Fettered After All These Years,” Working Paper No. w9276, National Bureau of Economic Research, October 2002. Hayek, Friedrich August, "The Keynes Centenary: The Austrian Critique," The Economist, June 11, 1983, pp. 45-48, reprinted in Bruce J. Caldwell, ed., The Collected Works of F. A. Hayek: Volume IX: Contra Keynes and Cambridge: Essays, Correspondence. Chicago: Univesity of Chicago Press, 1995, pp. 247-255 Skidelsky, Robert, , Volume One 1883-1920, Penguin Books 1994; First Published By MacMillan 1983

Schumpeter

Life; First Books; Schumpeter and Keynes; Capitalism, Socialism and Democracy; Methodology;

Literature: Swedberg, Richard, Joseph A. Schumpeter, His Life and Work , Polity Press 1991 Heilbroner, Robert, The Worldly Philosophers, Sixth edition, Penguin Books, chapter 8 and 10 Schumpeter, Joseph A. Capitalism, Socialism, and Democracy, London, Allen and Unwin 1943 Schumpeter, Joseph A., Science and Ideology, the American Economic Review, March 1949, Volume 39, Number 2, pp. 345-59 Hayek

Family Background; Vienna, England in the 1930s; Anti-Socialist; Main Contribution; Money;

Literature F. A. Hayek, "The Use of Knowledge in Society," American Economic Review 35(4): 519-530, 1945. Bruce Caldwell, “Hayek and Socialism,” Journal of Economic Literature 35: 1856-1890 December 1997 Ebenstein, Alan, , A Biography, Palgrave, 2001 Ebeling, Richard, M. “The Life and Works of Ludwig von Mises,” The Independent Review, XIII, 1, Summer 20 Silk, Leonard, The Economists, Avon Books, New York, Basic Books 1976

Veblen

Life, Teacher, Reformer, Theory of Leisure Class,

Literature Veblen, Thorstein B., The Theory of the Leisure Class, 1899, in History of Economic Thought: A Reader, edited by Steven G. Medema and Warren J. Samuels, Routledge, 2003, pp. 613-645 Silk, Leonard, The Economists, Avon Books, New York, Basic Books 1976 Riesman, David, , A Critical Study of an American Thinker of Wide Influence The Scribner Library, 1953, Charles Scribner’s Sons

Friedman, Samuelson

Literature Silk, Leonard, The Economists, Avon Books, New York, Basic Books 1976

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Overtveldt, Johan van, The Chicago School, Agate Chicago, 2007 Hammond, J.D. 1999. The Legacy of as Teacher. Cheltenham: Edward Elgar. Hammond, J.D. 2005. Theory and Measurement: Causality Issues in Milton Friedman's . Cambridge: Cambridge University Press. Wood, J. 1990. Milton Friedman; Critical Assessments. London: Routledge. Walters, Alan. "Friedman, Milton (1912–2006)." The New Palgrave Dictionary of Economics. Second Edition. Eds. Steven N. Durlauf and Lawrence E. Blume. Palgrave Macmillan, 2008. The New Palgrave Dictionary of Economics Online. Palgrave Macmillan 2012 Fischer, Stanley. "Samuelson, Paul Anthony (1915–2009) ." The New Palgrave Dictionary of Economics. Second Edition. Eds. Steven N. Durlauf and Lawrence E. Blume. Palgrave Macmillan, 2008. The New Palgrave Dictionary of Economics Online. Palgrave Macmillan.

Non-Mainstream Economic Thought

Boulding, Dobb, Georgeschu-Roegen, Michael Polanyi, Kornai, Catholic Social Thought Literature Screpanti, Ernesto and Stefano Zamagni, An Outline of the History of Economic Thought, Clarendon Press, Oxford 1993, translated by David Field, original title Profilo di storia del pensiero economico, chapter 11 Silk, Leonard, The Economists, Avon Books, New York, Basic Books 1976 Kornai, Janos, By Force of Thought, Irregular Memoirs of an Intellectual Journey, The MIT Press 2006 Almodovar, António and Pedro Teixeira, The Ascent and Decline of Catholic Economic Thought 1830- 1950, History of Political Economy 40 (annual suppl.) 63-87 Arestis, P., and M. Sawyer. 2001. A Biographical Dictionary of Dissenting Economists. 2nd ed. Cheltenham, U.K.: Elgar Lee, Frederic S. "." The New Palgrave Dictionary of Economics. Second Edition. Eds. Steven N. Durlauf and Lawrence E. Blume. Palgrave Macmillan, 2008. The New Palgrave Dictionary of Economics Online. Palgrave Macmillan 2012 Stanford Philosophy of Economics (2008), First published Fri Sep 12, 2003, revisions Tue Feb 26 2008 Rosenberg, Alexander (1992), Economics – Mathematical Politics or Science of ? The University of Chicago Press 1992 Uhlig, Harald, How Empirical Evidence Does or Does Not Influence Economic Thinking and Theory, 2010, INET Conference Paper, Lawson, Tony, Really Reorienting Modern Economics, INET Conference, King’s College, April 8-11, 2010 Fooley, Duncan K., “Mathematical Formalism and Political-Economic Content,” INET Conference, King’s College, April 8-11, 2010

Thinking about Socialist , Central European Thought

Socialist Calculation Debate, Interpretation of Socialist Economies; Interpretation of Transition Kornai, Janos, By Force of Thought, Irregular Memoirs of an Intellectual Journey, The MIT Press 2006 Stiglitz, Joseph E., Whither Socialism? The MIT Press 1994; second edition 1995, The Wicksell Lectures Rothbard, Murray N. Mises, Ludwig Edler von (1881–1973), The New Palgrave Dictionary of Economics, Second Edition, 2008, Edited by Steven N. Durlauf and Lawrence E. Blume

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