A brief History of Economics

By- Basharat Hossain

Assistant Professor of Economics

International Islamic University Chittagong

Evolution of Economics as a Discipline

The study of the economy in western civilization was begun largely with
the Greeks, particularly Aristotle (384-322 BC) and Xenophon (420?-
355? BC). The ancient economic thinkers concerned with the theories
of money, Taxation, usury, property rights, Entrepreneurship, Price
differentials, Justice in economic exchange and analyzed the impact of
ethics in economics.

Famous economists of the ancient school include St. Thomas

Aquinas(1225-1274?),John Duns Scotus (1265-1308), Jean Buridan(1295
– 1358), Jean Buridan, (1295 – 1358),Nicole de Oresme, (1320-
1382),Gabriel Biel, (1425-1495), Sir William Petty (1623-1687).

Classical (1776-1871):
The classical economists developed the theories about how markets
and market economies work focusing the dynamics of economic growth
which stressed economic freedom and promoted ideas such as laissez-
faire and free competition. They introduced the labor theory of value,
theory of distribution (Smith),, Principles of Political Economy and
Taxation((Ricardo 1817, Mill 1848), the theory of surplus value(Karl
Marx), principle of comparative advantage ,international-trade theory
(Ricardo) and Monetary theories.

Famous economists of the classical school include Adam Smith, David

Ricardo, W. Jevons, Jean-Baptiste Say, John Stuart Mill, Thomas
Malthus, Professor Pigou, and Alfred Marshall.

Neoclassical (1871-Today):

Neoclassical economists first introduced the theories of Rationality &

individual preferences, utility maximization (Utilitarianism, Jeremy
Bentham) and Information economics, Theories of market forms and
industrial organization, general equilibrium theory, indifference curves
and the theory of ordinal utility. Neoclassical economics also increased
the use of mathematical equations in the study of various aspects of
the economy.

Famous economists of the Neoclassical school are William Stanley

Jevons (Theory of Political Economy (1871), Carl Menger (Principles of
Economics (1871), Leon Walras (Elements of Pure Economics (1874 –
1877), Joan Robinson (The Economics of Imperfect Competition (1933),
Edward H. Chamberlin (the Theory of Monopolistic Competition (1933),
Paul Samuelson and so on.

Islamic Economics:

The practice of Islamic Economics was begun in the state of Medina in

the 6th century. After that, the process of Development of this
discipline was handled by the different scholars and Economists in
different centuries. many of them are Abu Yusuf (731-798), Al Farabi
(873-950), Al Ghazali (1058-1111), Al mawaridi (1675-1158), Nasir Al-
Din Al-Tusi (1201-1274), Ibn Taymiyyah (1263-1328), Ibn Khaldun
(1334-1406) History of the World (Kitab al-Ibar), Asaad Davani (1444).
They amplified the Ideas of consumer theory, supply and demand,
Elasticity, Taxation (Khaldun-Laffer Curve (the relationship between tax
rates and tax revenue) etc in the light of Islamic Economics. Ibn
Khaldun was considered as a Forerunner of modern economics.

The tools of Islamic economics are also employed in modern economics

by some economic thinkers. Among of them, the contributions of M
.Umer chapra (Islam &economic challenges), Monzer Kahf. Najat Ullah
Siddiqui, M.A. Mannan, Fahim Khan,Anas Zarqa are well known to the
recent world.
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