History of Economic Thought
The study of how economic ideas, theories, and schools of thought developed over time, shaped by changing institutions, evidence, and debates.
Mercantilism: An early modern doctrine that treated national wealth as dependent on trade surpluses, precious metals, and state power. It shaped European economic policy before classical political economy took hold.
Political Economy: The study of how political institutions and power interact with production, exchange, and the distribution of resources. Earlier economic thinkers usually framed their inquiries as political economy.
Adam Smith: An eighteenth-century Scottish moral philosopher whose works analyzed commercial society, markets, and the division of labor. His Wealth of Nations became a foundational text of classical political economy.
Austrian School: A tradition emphasizing subjective value, individual choice, market processes, and the limits of centralized economic knowledge. It offers a distinct account of coordination and challenges equilibrium-centered approaches.
The Wealth of Nations: Adam Smith’s 1776 book analyzing commercial society, the division of labor, markets, and public responsibilities. It gave classical political economy a widely influential statement.
Physiocracy: An eighteenth-century French school that treated agriculture as the source of a society’s net product. Its circular-flow model and advocacy of economic liberty influenced later theorists.
Value Theory: Theories explaining what determines the value or price of goods and services. Competing accounts of value divide classical, Marxian, and marginalist traditions.
David Ricardo: A British political economist known for theories of rent, distribution, comparative advantage, and value. His analysis made distribution among social classes central to classical economics.
Institutional Economics: The study of how laws, customs, organizations, and social rules shape economic behavior and outcomes. It counters explanations that treat preferences and markets as independent of institutions.
The Communist Manifesto: A political pamphlet by Karl Marx and Friedrich Engels, published in 1848, presenting a critique of class society and capitalism. It carried Marxian ideas into political movements and public debate.