History of Economic Thought

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Understanding the economic point of view is crucial in teaching economics. Reading the works of such authors as A. Smith, J. M. Keynes, and M. Friedman gives a unique opportunity of understanding the way economists conceptualize the economy. The course will be based on lectures combined with in-class discussions. Students will learn the concepts and theories of prominent economists, as well as ways of analyzing and interpreting texts, writing papers and preparing scientific presentations. The pass mark for the seminar is the activity in class (including Power Point presentation), writing an essay and passing the final exam.

I. INTRODUCTION

1. Economics, history of economics ,and economic point of view

2. The origins of economic thought, the first economic systems

(i) first economic insights: Xenophon, Aristotle, and St. Thomas; (ii) The first economic systems: Mercantilism and Physiocrats.

II. CLASSICAL ECONOMICS

3. Economics of Adam Smith

Wealth and wealth factors, theory of value, distribution theory, theory of production, social philosophy, "Wealth of Nations", "invisible hand".

4. Division and the increase of wealth: D. Ricardo

Ricardian economics: the division of wealth; the theory of exchange value, the fundamental rights of distribution, capital accumulation and economic growth. The debate about the stability of the economy: Ricardo Vs. Malthus.

5. Canon laws of classical economics

J.St.Mill and institutions of liberal economics: the role of state, private property and competition. Canon laws of classical economics. The concept of homo economicus.

III. Reaction to Classical economics

6. The economics of K. Marx

(i) Utopian socialism; older historical school. (ii) the dialectics of social development. Value, and exchange value. Conflicts between labor and capital. Laws of motion of capitalism.

IV. Neo-classical economics

7. The Marginal revolution

(i) the emergence of marginal analysis: C. Menger, W.St. Jevons, L. Walras. Criticism of classical theory of value and price. The theory of marginal utility. Exchange theory. (ii) the development of marginal analysis

8. General equilibrium theory: L. Walras

Outline of the general equilibrium model. Conditions for the formalization of the model.

9. Partial equilibrium and neoclassical research program: A. Marshall

Theory of value and price: utility and costs. Theory of value. Factors of production, supply and costs. Market: demand - supply - price, current price, etc.

V. INSTITUTIONALISM AND HISTORICAL AND SCHOOL

10. Institutions and historical approach: T. Veblen, and M. Weber

(i) Institutionalism of T. Veblen; Veblen's critique of neoclassical economics, institutional analysis of capitalism, the theory of the leisure class. (ii) the Younger historical school of M. Weber; (iii) Protestantism and the rise of capitalism.

VI. CONTEMPORARY ECONOMICS

11. Macroeconomics: Keynesian Revolution

Keynes' critique of (neo)classical economics. The principle of effective demand. Theory of Employment. Liquidity preference theory. The principles of economic policy. Keynesian social philosophy.

12. Macroeconomics: monetarism

M. Friedman's theory of money demand. Inflation and unemployment in the monetarist view. The theory of the natural rate of unemployment. The principles of economic policy.

13. The dominance of neoclassical economics

(i) Development of microeconomics: the theory of imperfect competition and monopoly. The theory of general equilibrium. Economic imperialism. (ii) the formalistic revolution in economics; The birth and development of econometrics. Game theory.

14. Austrian School and the new institutional economics

(i) the Austrian school; methodological underpinings; coordination and the market process, the theory of spontaneous order (Hayek); (ii) institutionalism of Veblen to Galbraith. (iii) New institutional economics: R. Coase and O. Williamson.

15. The evolution of the economic point of view

Must read:

H. Landreth i D.C. Colander, History of Economic Thought, Wyd. Naukowe PWN, Wydanie II, uzupełnione, Warszawa 2005.

Moreover, studens are required to read the materials provided by the instructors.

I. In terms of knowledge:

Student:

a / gets to know the economic point of view on socio-economic phenomena by studying the history of economics;

b / knows the basic ideas and economic theories;

c / understands the importance of the history of economics for the later teaching of economic theory.

II. In terms of skills:

Student:

d / can prepare a presentation and write an essay according to writing theses rules in force at the Faculty of Economic Sciences, University of Warsaw

e / learn to take part in in-class discussions.

KW03, KW01, KW02, KU01, KK01, KK02, KK03

The final assessment consists of two elements - credits from the course (40%) and final exam (60%).

1. Credits from the course courses

It is based on the presence and activity in class, presentation and also a written paper. Evaluation of classes consists of two parts: the paper accounts for 25% and the presentation and activity of 15%.

2. Exam

The written exam consists of multiple choice questions (50% of total no of points from the exam) and short essay (50% of total no of points from the exam). In the case of the essay, students choose a theme from at least three proposed by the examiner. Passing the exam is a prerequisite for receiving credit. The pass mark is to get 50% points.