ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

History of Economic Thought; A Brief Note

Updated on November 14, 2015
icv profile image

IRSHAD CV has been a student in Economics. Now he is doing Masters in Economics. He completed B.A. Economics from the University of Calicut.

Source

Introduction

Now we are living in a globalized world and so economics plays an important role to study about the world. because as a human beings, people are desired to get commodities to satisfy their wants. And almost every transactions are delivering through the medium of money or something like that. When we study the past society we may find the influence of economical matters in their day to day life. Any way economic thought simply refers to the study of economic related things. As mentioned above the economic thought had a long tradition from the early ancient period onwards. So, the study of past economical experiences of different societies can be said as the history of economic thought.

“history of economic thought can be defined as a critical account of the development of economic ideas, searching into their origins, interrelations and manifestations”.

— Professor Haney,

Why Study the History of Economic Thought

There are many arguments among scholars to study the history of economic thought, while some other scholars neglect the study of the history of economic thought. Since Economics is a necessary part of any society, it is more suitable to study the history of economic thought. The main reasons for studying the history of economic thought are listed below.

a) The study of economic thought will enable us to understand the origin of economic ideas. So, to reduce the complexity of history of economics, the entire history can be categorized based on the chronological order like ancient, medieval and modern economic ideas. The same thing can be also categorized as Economics before classical and Economics after classical.

b) The study of history of economic thought will help us to understand great and olden economists and their contribution to the world. Plato, Aristotle etc. are some of the great ancient philosophers and they also contributed their ideas for the society of that time.

c) The study of history of economic thought will help to compare and analyze the societies of different times. This will also enable us to realize the relative symphony of economic ideas.

Economics As a Science

Now, majority of the scholars arguing economics is a science. This is mainly because economics is the body of systematic knowledge. Even though the history of economics came from the human birth onwards, it lacked the scientific ideas or system. Later on 1776, Adam Smith published his famous work “The Wealth of Nations”, this considered as the turning point of economics. Because from the time of Adam Smith onwards, it got got attraction. So in short, Economics become a science only after the publication of “The Wealth of Nations” in 1776. further the work gave a title for Adam Smith, which is popularly known as the ‘Father of Economics’.

Theoretical Approaches for Studying the History of Economic Thought

So far we understood what is history of economic though and its scientific origin, it is the time to analyze different approaches using for studying the history of economic thought. Following are the few approaches.

i) Chronological Approach: By this approach the history of economic experiences are studied based on the order of time. This method is a common way for studying any kind of history about different subjects. This will help the learner to understand the major contribution of different times of economics based on the order of time.

ii) Philosophical Approach: This is also an important approach in economics which is widely influenced in ancient economic thought. By this method, “ethics” is the important matter taking in to consideration. The ancient philosophers like Aristotle, Plato etc were the eminent philosophers.

iii) Conceptual; Approach: Conceptual approach is the study of the past of economics by7 focusing to the concepts of theories or ideas. Some time some concepts are much popular than the founders of the concepts or theories. For example; Liquidity Preference is a well known concept which was actually developed by J.M. Keynes. But most of the time the concept of liquidity preference is highlighted than J.M Keynes.

iv) Classical Approach: Classical approach is actually the alms of classical economists. They developed their economic ideas from the method of deductive method. That is deduction is the process of studying of individual (micro) level problems. In other words deduction is the process of general to particular. Almost all the classical economists are came under this category like J.M Mills, Ricardo etc.

v) Historical Approach: Historical approach was arose as a criticism to the classical economic ideas. The classical economists emphasized on the deductive method. But, since every things are interrelated with each other, it is better to analyze the economy from a general angle. So, the importance of aggregate units (macro) increased than the individual (micro) units. So, the historical method emphasizes on the inductive method, which is the study of general from particular.

vi) Neo-classical Approach: Noe-classical economists were the important scholars who provided many ebullient things for the economic thought. Alfred Marshall is considering as the leader of neo-classical approach with his famous book titled “Principles of Economics”. They argued for the composition of classical thought and historical thought. That is neo-classical approach is the composition of both deductive and inductive method.

vii) Keynesian Approach: Keynesian approach popularly known as the ‘Keynesian Revolution’ is another one which having more significance. The Keynesian approach came in to reality after the great depression of 1930s. the depression proved that the classical's idea was a wrong one. Keynes published his book “The General Theory of Employment, Interest and Money” in the year 1936. by which he was totally against the ideology of classical and he emphasizes the analysis of economic problems from the angle of macro or general view.

viii) Welfare Approach: This approach is an interesting one and also anew trend in economics. This approach is mainly focused on the concept of social benefits or satisfactions like utility, consumption etc.

Conclusion

History of economic thought is an important field of knowledge, which is the searching and studying of the economic ideas from olden time onwards. Any way today economics become an important discipline since all are related with economics in many ways. In short the study of history of economic thought is the analysis of different approaches developed in different times. And also there vare many approaches for studying the history of economic thought from ancient time onwards as mentioned above.

Comments

    0 of 8192 characters used
    Post Comment

    No comments yet.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)