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History of economic thought. Textbook

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Yu.P. Grabozdin, L.V. Ermolina, Yu.V. Zelepukhin,
S.V. Krasnov, S.A. Leonov, P.E. Mazeev,
E.A. Maznaya, I.G. Perepelkina, L.A. Salakhova,
N.S. Sakhchinskaya, Yu.A. Tatarovsky,
L.V. Feofilaktova, E.V. Fomenko, I.G. Shakurov
HISTORY
Textbook
Translation from the Russian
Moscow
IPR Media
2024
Ю.П. Грабоздин, Л.В. Ермолина, Ю.В. Зелепухин,
С.В. Краснов, С.А. Леонов, П.Е. Мазеев,
Е.А. Мазная, И.Г. Перепелкина, Л.А. Салахова,
Н.С. Сахчинская, Ю.А. Татаровский,
Л.В. Феофилактова, Е.В. Фоменко, И.Г. Шакуров
ИСТОРИЯ
ЭКОНОМИЧЕСКИХ УЧЕНИЙ
Учебник
Москва
Ай Пи Ар Медиа
UDC 330.8 BBK 65.02
H 69
Authors of the Economics Department
of Samara State Social and Pedagogical University:
Grabozdin Yu.P. PhD in econ. sciences, Associate Professor, Head of the Department;
Ermolina L.V. PhD in econ. sciences, Associate Professor, Associate Professor;
Zelepukhin Yu.V. – PhD in tech. sciences, Associate Professor, Associate Professor;
Krasnov S.V. Senior Lecturer;
Leonov S.A. PhD in econ. sciences, Associate Professor;
Mazeev P.E. Senior Lecturer;
Maznaya E.A. PhD in econ. sciences, Associate Professor;
Perepelkina I.G. Senior Lecturer;
Salakhova L.A. Senior Lecturer;
Sakhchinskaya N.S. Doctor of econ. sciences, Associate Professor, Professor;
Tatarovsky Yu.A. PhD in econ. sciences, Associate Professort;
Feofilaktova L.V. Senior Lecturer;
Fomenko E.V. PhD in econ. sciences, Associate Professor, Associate Professor;
Shakurov I.G. Doctor of econ. sciences, Associate Professor, Professor
Reviewers:
Suraeva M.O. — Doctor of econ. sciences, prof.,
prof. of Management Department of Samara State Economic University;
Karsuntseva O.V. — Doctor of econ. sciences, Associate Professor, Director of the Syzran branch of Samara State Technical University
H 69 History of economic thought : textbook / Yu.P. Grabozdin, L.V. Ermolina,
Yu.V. Zelepukhin [et al.]. Moscow : IPR Media, 2024. 129 p. Text: digital.
ISBN 978-5-4497-2551-6
The textbook was prepared in accordance with the curriculum of the training course History of Economic Thought. In addition to an introduction to economic theory, the publication includes sections devoted to the history of the development of microeconomics, macroeconomics, and financial and economic activities.
Designed for students of training area Economics and Management, as well as for students of non-economic areas of training studying economics in accordance with the curriculum of the educational organization.
Educational digital edition
ISBN 978-5-4497-2551-6 (en) © ООО Компания «Ай Пи Ар Медиа», 2021 ISBN 978-5-4497-0949-3 (rus) © English edition, translation, design. LLC "IPR Media", 2024
Educational publication
Editor A.D. Matlakhova
Technical editors, computer layout N.G. Shindina, A.A. Balakireva
Proofreaders A.V. Misenzhnikov, Yu.V. Semenova
Cover by S.S. Siziumova
Signed for use on 28.11.2023. Data volume 6,5 Mb
LLC Company "IPR Media"
8 800 555 22 35 (toll-free within Russia)
E-mail: sale@iprmedia.ru
5
TABLE OF CONTENTS
INTRODUCTION ....................................................................................................... 8
SECTION 1. ECONOMIC TEACHINGS OF THE PRE-MARKET
ECONOMY ERA ........................................................................................................ 9
Topic 1. Subject of the history of economic thought ............................................ 9
1.1. Features of the course "History of Economic Thought" ................................ 9
1.2. History of economic thought in the system of economic sciences .............. 11
1.3. Main stages in the development of economic theory ................................... 11
Topic 2. Economic teachings of the Ancient World ........................................... 13
2.1. Economic thought in ancient Eastern societies ............................................ 13
2.2. Economic thought in the ancient world ....................................................... 18
Topic 3. Economic views in the Middle Ages ...................................................... 24
3.1. Economic thought in the Arab East ............................................................. 25
3.2. Economic ideas in medieval Western Europe .............................................. 26
3.3. Economic ideas of feudal Russia ................................................................. 30
3.4. Utopian socialism during the period of the decomposition
of feudalism ......................................................................................................... 32
SECTION 2. ECONOMIC TEACHINGS OF THE ERA
OF UNREGULATED MARKET ECONOMY ...................................................... 33
Topic 4. Mercantilism as a system of economic ideas in the era of the
formation of market relations .............................................................................. 33
4.1. General characteristics of mercantilism ....................................................... 33
4.2. Early mercantilism as a system of monetarism (cash balance) .................... 34
4.3. Late mercantilism as a manufacturing system (trade balance) .................... 34
4.4. Mercantilism in Russia in the 17th–18th centuries ...................................... 36
4.5. The importance of mercantilism in economic theory .................................. 39
Topic 5. The emergence of classical political economy. Physiocrats ................ 39
5.1. Historical conditions of classical political economy origin ......................... 39
5.2. Teachings of W. Petty .................................................................................. 40
5.3. The emergence of bourgeois political economy in France.
P. Boisguilbert ..................................................................................................... 42
5.4. School of Physiocrats. F. Quesnay ............................................................... 43
5.5. The ideas of the physiocrats in the teachings of J. Turgot ........................... 46
5.6. The significance of the teachings of the physiocrats
in economic theory .............................................................................................. 47
6
Topic 6. The rise of classical political economy and its completion ................. 48
6.1. Economic doctrine of A. Smith .................................................................... 48
6.2. Economic doctrine of D. Ricardo................................................................. 55
6.3. T. Malthus and his economic views ............................................................. 59
6.4. J. B. Say and his role in the development of market theories ...................... 60
6.5. Defense of capitalism in the works of F. Bastiat and N.U. Senior .............. 61
6.6. Classical political economy J. St. Mill ......................................................... 63
Topic 7. Economic views and reform concepts of opponents
of the classical political economy ......................................................................... 66
7.1. Conditions for the emergence of criticism of capitalism and classical
political economy ................................................................................................ 66
7.2. The theory of economic romanticism .......................................................... 67
7.3. Economic ideas of utopian socialism of the 19th century ........................... 70
7.4. Historical school in political economy ......................................................... 73
Topic 8. Marxism in political economy ............................................................... 74
8.1. Historical conditions for the emergence of Marxism .................................. 74
8.2. Marxian concept of social development ...................................................... 76
8.3. Economic ideas of K. Marx ......................................................................... 77
8.4. The place of Marxian teaching in economic theory ..................................... 79
8.5. Marxism in Russia ........................................................................................ 79
Topic 9. Marginalism. Neoclassical economic theory ........................................ 82
9.1. General characteristics of marginalism ........................................................ 82
9.2. Predecessors of marginalism: J. von Thunen, A. Cournot, J. Dupuit,
G. Gossen ............................................................................................................ 83
9.3. Austrian school of marginal utility: K. Menger, E. von Böhm-Bawerk,
F. von Wieser ...................................................................................................... 84
9.4. Marginal ideas of W. Jevons, L. Walras and V. Pareto on economic
equilibrium .......................................................................................................... 85
9.5. Neoclassical economic theory as the completion of the "marginal
revolution": the teachings of A. Marshall and J. B. Clark .................................. 87
SECTION 3. ECONOMIC TEACHINGS OF THE ERA OF THE
REGULATED (SOCIALLY ORIENTED) MARKET ECONOMY ................... 89
Topic 10. Keynesianism ........................................................................................ 89
10.1. Economic teachings of J. M. Keynes ......................................................... 89
10.2. Theories of Keynes' followers .................................................................... 90
Topic 11. Neoliberalism ........................................................................................ 94
11.1. Neoliberalism: general characteristics ....................................................... 94
7
11.2. Economic views of L. Mises and F. Hayek ............................................... 94
11.3. Freiburg School of Neoliberalism.
Social market economy concept .......................................................................... 95
11.4. Monetarism ................................................................................................. 96
Topic 12. Social and institutional direction of economic thought .................. 100
12.1. General characteristics of institutionalism ............................................... 100
12.2. Classical institutionalism ......................................................................... 101
12.3. "Second wave" institutionalism
(theories of institutional evolution) ................................................................... 107
12.4. Neo-institutionalism ................................................................................. 110
TESTS FOR THE COURSE "HISTORY OF ECONOMIC STUDIES" ......... 114
Section 1. Economic teachings of the pre-market economy era ......................... 114
Section 2. Economic teachings of the era of an unregulated
market economy....................................................................................................... 118
Section 3. Economic teachings of the era of a regulated
(socially oriented) market economy ....................................................................... 121
LIST OF REFERENCES ....................................................................................... 125
8
INTRODUCTION
For a person studying economic theory, as well as other economic disciplines
that belong to the system of economic sciences (finance and credit, management, marketing, business and entrepreneurship, etc.), it is important to know not only the content of these sciences, but also the history of their origin and development, overcoming contradictions in the views and concepts of individual economists, the characteristic features of each of the teachings. All this knowledge can be obtained from the training course "History of Economic Thought".
Studying the history of the development of economic thought in parallel with
economic theory and other economic sciences allows us to understand the origins of certain economic laws and processes occurring in modern economics, to form systemic economic thinking.
This textbook is addressed to everyone who studies economics and wants to
delve deeper into the logic of economic science and the system of economic relations, to get an idea of the main stages of economic development and main economic directions, schools and theories.
9
SECTION 1. ECONOMIC TEACHINGS OF THE PRE-MARKET
ECONOMY ERA
TOPIC 1. SUBJECT OF THE HISTORY OF ECONOMIC THOUGHT
1.1. Features of the course "History of Economic Thought"
The life of a modern person is literally permeated and determined by the
economy. The needs of modern people are very diverse and almost limitless. Satisfying these needs with available resources is the main task of the economy. The well-being of society depends on how the economy copes with this task. And when a society is economically prosperous, contentment, peace and order reign in it. Therefore, every person needs to master economic culture, know the laws and principles of functioning of the modern economy.
When studying economics, it is very useful, and sometimes simply necessary,
to know not only the content of this science, but also how it arose and developed, what theoretical concepts and developments took place in the past (and this is precisely what is studied in the course "History of Economic Thought"). Why waste time on this if you can study modern theories designed to solve current problems? Let's try to answer this question.
1. The history of economic thought represents the stages of knowledge of
economic science. Familiarity with it helps to understand the internal logic, the interconnection of categories, laws, and concepts.
Studying the history of economic science allows one to enter the laboratory of
economic thinking.
2. Acquaintance with various schools and directions makes it possible to
understand the relationship of theoretical views with the conditions and reasons for their emergence, the needs of economic practice, and the interests of various social groups, countries, and peoples. (Knowledge of the history of economic ideas helps to avoid past mistakes).
3. Appeal to the history of economic thought contributes to the ability to
objectively evaluate theories, recommendations, and conclusions. It is important to understand and comprehend the relativity of economic knowledge, the need for its constant clarification, deepening, and improvement. The development and enrichment of economic theory is a constant consideration of changing conditions and relationships, a comparison of different approaches, positions of different schools and views, continuity of knowledge and conclusions.
10
The history of economic thought can be a set of possible alternative ways of
explaining economic processes and phenomena. Sometimes an old economic idea can be useful in creating a new model of economic behavior.
Thus, "History of Economic thought" is an integral link in the cycle of the
economic disciplines.
The subject of study of this discipline is the historical process of the
emergence, development and change of economic ideas and views, which, as changes occur in the economy, science, technology and social sphere, is reflected in the theories of individual economists, theoretical schools, trends and directions.
The process of studying the course "History of Economic Thought" has its own
specifics:
- this discipline traces the emergence, development, change of economic ideas
and views, and not the content of these ideas. Therefore, acquaintance with the history of economic thought must be combined with the study of the essence and content of economic theory;
- when studying the history of economic thought, one cannot abstract from the
economists who created this or that thought. Therefore, the course examines the life and creative path of these scientists;
- when studying various directions of economic thought, it is necessary to take
into account historical, national, and geographical features; when evaluating a particular theory, it is necessary to proceed from its effectiveness when implemented in practice.
Studying the history of economic teachings, one can notice the divergence of
views on the subject and methodology of economic science among representatives of various schools and directions.
This can be explained by the fact that economists of alternative directions and
schools had their own vision of the nature and causes of various economic phenomena and processes, used certain methods to analyze economic life and offered their own ideas about ways to solve scientific problems.
The most striking example of the divergence of views not only on the subject,
but also on the method of economic science is, perhaps, the approach to this problem of representatives of Marxian political economy, on the one hand, and market economists, on the other.
Marxists, as is known, considering their work an updated continuation of the
economic teachings of Smith and Ricardo, assert the primacy of the sphere of production (subject of study) and cause-and-effect analytical structures (causal method of analysis).
Proponents of market theory currently occupy a dominant position in economic
science. Their version of the subject and method is now the basis of a standard educational course in economic theory.