Course info

Course Objective: 

This course is an introduction to the history of economic theory. While the major phases in the development of economics will be studied, the aim will be to treat them against the background of their historical environment, including political and social thought and current economic problems. The course will include, but not be confined to, the work of Smith, Ricardo, Marshall and Keynes.

Course Outcomes:  The students will be able to

1

 To comprehend the development of the theory of economics in historical perspective.

To comprehend the development of the theory of economics in historical perspective.

2

 To comprehend emerging paradigms and aberrations with its reasons

To comprehend emerging paradigms and aberrations with its reasons

3

To debate similarities and differences among different economy schools.

Course Content:  

 UNIT I

MARGINALIST THOUGHT

Marginalist revolutions--W.JevonsWalras, De-homogenizing marginalism, Marshallian synthesis

10 hrs

UNIT II

NEO-CLASSICAL THOUGHT

Welfare economics of A.C. Pigou. Schumpeter; role of Entrepreneur and innovations.

10 hrs

 UNIT III

CLASSICAL POLITICAL ECONOMY I

Adam Smith and his economic theory, Ricardo’s contribution to classical economic thought, Ricardo-Malthus glut controversy, Classical Stationary State with special reference to Mill’s views, A general Overview of Classical Economic Thought,

10 hrs

UNIT IV

CLASSICAL POLITICAL ECONOMY II

Karl Marx - Organic Composition of Capital. Break Down of Capitalism, Marxian Theories of Value, Surplus Value, Profit and Crisis of Capitalism. Essential Differences between Classical Economics and Marxian Economics.

10 hrs

 UNIT V

KEYNESIAN’s THOUGHT

The aggregate economy, Liquidity Preference Theory and Liquidity trap, Marginal Efficiency of  Capital and Marginal Efficiency of Investment, wage rigidities, underemployment equilibrium, role of fiscal policy, deficit spending and public works, multiplier principle, cyclical behaviour of the economy, uncertainty and role of expectations.

10 hrs

UNIT VI

INDIAN ECONOMIC THOUGHT

Main themes of Kautilya’sArthasashtra; Economic Ideas; Dada Bhai Naoroji, Ranade, Gokhale; M.K. Gandhi, Bhimrao Ambedkar, DeendayalUpadhyay and J K Mehta. A synthesis of economic thought, Comparison of Indian economic thought with western economic thought.

10 hrs

Internal Assessment: 

 CIA 1

Unit I, Unit II 

 CIA 2

Assignment submission and/or presentation 

Text Books: 

Blackhouse, R. (1985), A History of Modern Economic Analysis, Basil Blackwell, Oxford.

Ganguli, B.N. (1977), Indian Economic Thought: A 19th Century Perspective, Tata McGraw Hill, New Delhi.

 Reference Books: 

Grey, A. and A.E. Thomson (1980), The Development of Economic Doctrine, (2nd Edition), Longman Group, London.

Kautilya (1992), The Arthashastra, Edited, Rearranged, Translated and Introduced by L.N.  Rangaranjan, Penguin Books, New Delhi.

Schumpeter, J.A. (1954), History of Economic Analysis, Oxford University Press, New York

Seshadri, G.B. (1997), Economic Doctrines, B.R. Publishing Corporation, Delhi.

Blaug, M. (1997), Economic Theory in Retrospect: A History of Economic Thought from Adam Smith to J.M. Keynes, (5th Edition), Cambridge University Press, Cambridge.

Dasgupta, A.K. (1985), Epochs of Economic Theory, Oxford University Press, New Delhi.

Hunt E.K. and Mark, Lautzenheiher (2011): History of Economic Thought, PHI Learning.