History of economic thought
Ancient economic thought
Ancient economic thought refers to the ideas from people before the Middle Ages. Economics in the classical age is defined in the works of economists like Aristotle and Kautilya.
Aristotle
Aristotle, a Greek philosopher, discussed economic issues in his work "Politics". He viewed economics as a branch of ethics, a study of what is good for humans. He argued that economics was not about wealth accumulation but about the art of household management[^1^].
Kautilya
Kautilya was an ancient Indian teacher, philosopher, and royal advisor. He wrote the Arthashastra, a treatise on statecraft, economic policy, and military strategy[^2^].
Medieval economic thought
During the Middle Ages, economic thought evolved in monastic communities and universities. The most influential works of this era came from Thomas Aquinas.
Thomas Aquinas
Thomas Aquinas, a theologian and philosopher, integrated Aristotle's economic thought into Christian theology. He discussed economic issues in his work "Summa Theologica", where he argued that prices should be just and fair[^3^].
Early modern economic thought
In the early modern period, economic thought was dominated by mercantilism and the physiocrats.
Mercantilism
Mercantilism was an economic theory that advocated for a positive balance of trade. It was believed that national wealth and power were best served by increasing exports and collecting precious metals like gold and silver[^4^].
Physiocrats
The physiocrats were a group of economists who believed that the wealth of nations was derived solely from the value of land agriculture or land development[^5^].
Classical economic thought
Classical economic thought emerged in the late 18th century with the works of Adam Smith, David Ricardo, and John Stuart Mill.
Adam Smith
Adam Smith, often considered the father of modern economics, wrote "The Wealth of Nations". He argued for free trade, market competition, and the invisibility of the hand[^6^].
David Ricardo
David Ricardo, another prominent classical economist, is best known for his theory of comparative advantage. This theory suggests that nations should specialize in the production of goods and services they can produce most efficiently[^7^].
John Stuart Mill
John Stuart Mill, a philosopher and economist, contributed significantly to the theory of the scientific method in economics. His "Principles of Political Economy" is considered one of the most important texts in the history of economic thought[^8^].
Modern economic thought
Modern economic thought is characterized by the development of Keynesian economics and neoclassical economics.
Keynesian economics
Keynesian economics, developed by John Maynard Keynes, advocates for government intervention to stabilize output and prevent recessions. It was a response to the Great Depression and is still influential today[^9^].
Neoclassical economics
Neoclassical economics is an approach to economics that relates supply and demand to individuals' rationality and their ability to maximize utility or profit. It is the dominant form of economics used today[^10^].
See Also
References
[^1^]: Aristotle. Politics. Oxford University Press, 1995. [^2^]: Kautilya. Arthashastra. Penguin Classics, 1992. [^3^]: Thomas Aquinas. Summa Theologica. Benziger Bros, 1947. [^4^]: Ekelund, Robert B., and Robert D. Tollison. Mercantilism as a rent-seeking society. Texas A&M University Press, 1981. [^5^]: Weulersse, Georges. Le mouvement physiocratique en France (de 1756 à 1770). Félix Alcan, 1910. [^6^]: Smith, Adam. The Wealth of Nations. Modern Library, 1937. [^7^]: Ricardo, David. On the Principles of Political Economy and Taxation. John Murray, 1817. [^8^]: Mill, John Stuart. Principles of Political Economy. Longmans, Green and co., 1909. [^9^]: Keynes, John Maynard. The General Theory of Employment, Interest and Money. Macmillan, 1936. [^10^]: Marshall, Alfred. Principles of Economics. Macmillan, 1890.