Professional Documents
Culture Documents
(4) Conclusion
Sheet 1
Sheet 2
Sheet 3
Sheet 4
David Hume
- rebellion against Mercantilism
- not the trade surplus but trade as such is good for
growth
Sheet 5
Karl Marx
- economic mechanisms for production and
distribution closely related
- economic growth profit-hungry capitalists
replace men by machines technological
unemployment cycles: ups and downs with
each crisis deeper hate of the masses
capitalism would collapse
Neo-Classical Economists
Alfred Marshall
- fourth factor of production: organisation
- 'Knowledge is our most powerful engine of
production and organisation aids knowledge'
- distribution of income and wealth matter for
growth
Joseph Schumpeter
- growth through technology through invention,
innovation and entrepreneurship
- entrepreneurs are rent-seekers motivated by
monopoly-profits continue to invent/innovate
as long as there is profit
- perfect competition efficient from a static point of
view but not from a dynamic
Sheet 6
Modern Economists
Mundell: original models on Trade Theory,
Optimum Currency Area, Factor Mobility
Solow: growth
Akerlof: game theory, market for lemons
Stiglitz: credit rationing, game theory
Simon: bounded rationality
Solow/Romer: growth
Coase: industrial organisation
Sheet 7