Eco 1

Brief History of Economics

Oikos & Nomos by Aristotle. Household Management

Mercantilism
Adam Smith in 1776
Off-the-cuff intuition and policy proposals by a myriad of merchants, government officials, and
journalists, principally in Britain
Ideas about improving tax revenues, the value & movements of gold. International commerce,
and colonies.
Classical School
Enlightenment era (mid 1700s) in Europe
Scientific principles to human society
Human interaction
Adam Smith Wealth of Nations (1776)
Classical school followers of Adam Smith (mid 1700s to 1 st half 19th century)
David Ricardo Ricardian school
Karl Marx used Ricardos theories
Historical institutional (19th century Germany)
Questioned Ricardos theories
Introduced inductive & empirical method of analysis
Notable economist Thorstein Veblen
Neoclassical School
1871 Marginalist Revolution
William Stanley Jevons, Carl Menger, Leon Walras New theory that discarded Ricardian tenets
of classical economics
SUPPLY AND DEMAND
Marginalist school also known as Neoclassical school (1870s-1930s)
Rise of Econometrics (Statistical tools)
Keynesian School
Great depression
1936 John Maynard Keynes new theory The General Theory explained aggregate phenomena
In Keynesian revolution (Post war years 1945-1970) economics was divided into micro and macro
Monetarist School
From two rails to one road
Neoclassicism New Classical School by Robert Lucas, University of Chicago

http://www.hetwebsite.net/het/fonseca/notes/schoolsofthought.pdf