... administration of
the household, but that of the State; no longer the study of the causes of the
enrichment of the individuals, but that of the nation, the people, and the
merchant class. It is significant ... centrality of the theory of marginal utility in Menger
To understand the terms of Menger’s theoretical battle on the other front,
i.e. the cri...
... The preconditions of the Industrial Revolution 54
2.1.2. Quesnay and the physiocrats 55
2.1.3. Galiani and the Italians 58
2.1.4. Hume and Steuart 63
The period from 18 15 to 18 45 was one of the ... terms of the analytical rigour of the specific theories of
which a system is formed and in terms of the relationships that link one
theory to another. The l...
... overturned the theories of Malynes: it is the surplus or the
deficit on the balance of trade which makes the rate of exchange vary, and
not the other way round. Rather than worry about the exchange ... pre-Malthusian: the con-
vergence of the two types of wage would go hand in hand with the conver-
gence of the working population towards the demand for labo...
... which the control of the means
of production, and therefore the production, is no longer in the worke rs’
hands. When capitalists and landlords take part in the division of the
product, the exchange ... is
63
laissez-faire
and smithian economics
Chapter 5 of Book I of The Wealth of Nations begins thus:
The real price of everything, what everything really co...
... the vaults of the Bank of
England. Furthermore, the difficulties of the war and the Continental
blockade made the export channels increasingly arduous and the supply of
raw materials and wage goods ... important for the explanation of profit and of the role played by
capital in the production process. From the point of view of the history of
economic...
... with that of ‘Ricardian economics’: a theoretical
system based on the theory of surplus, the labour theory of value, the
methodology of aggregates, and the analysis of the behaviour of the social
classes ... development of the Ricardian
theses about the occupational effects of the introduction of machines). The
increase in the ‘reserve army’ will then s...
... important work on monetary theory. He was one of the first
to use the aggregate supply-and-demand approach to explain variations in
the value of money. In most versions of the quantity theory of ... M
0
the current-
account bank deposits, V
0
the rate of turnover of the deposits, and T the
transactions. No other mathematical formula in the whol e of economics,
n...
... way of thinking.
7.1 .5. The multiplier and the accelerator
The fourth great stream of thought in dynamic theory in the inter-war period
was the study of the interaction between the multiplier and ... if the factor of periodicity is related to the duration of the
capital goods or to the tim e necessary for the diffusion of the innovations to
2 65
the...
... labour, from the theory of public
economics to the theory of the conflict of interests. He be lieved that the study
of ‘collective action’, i.e. of the activity (and the apparatus) of ‘control of
individual ... privileged field of study in an area on the borderline
between economics and law and can be considered one of the founders of
the new discipline...
... that the
new Keynesians have gone even further than the post-Keynesians in studying
the microeconomic conditions of real and nominal rigidity and in analysing
the macroeconomic effects of the ... many of the Cambridge post-Keynesian theories were developed in
the 1 950 s and 1960s in opposition to the neoclassical growth models of the
Solow–Swan type. The polemic m...