COURSE INFORMATION ECON 3008 Course Code

Course Title History of Economic Thought 3 Level 3 (May - July 2014) Semester 3 Credits ECON 1001and ECON 1002 Pre-requisite(s)

Main Lecturer Ms. Cassandra Rattan

INTRODUCTION: We warmly welcome you to: ECON 3008: History of Economic Thought. Are you excited to learn about economists and different schools of thought in Economics? This course offers you the opportunity to discover the economists behind prominent economic theories and understand how economic thought has evolved over the centuries. We look forward to sharing our love and knowledge of economic history with you. This course will certainly contribute to your development as an economist, as you will begin to appreciate the ideas from the past and how they are manifested in current economic approaches. Though a heavily reading intensive course, I trust that it will be a manageable and intellectually rewarding experience. Please remember that we are always willing to assist you throughout your journey, do not hesitate to contact us either via email or during office hours. Good luck and hope you enjoy this course! COURSE DESCRIPTION: This course examines the development of economic thought from the 1600s to the present. Beginning with early economic doctrines such as those of the Physiocrats and Mercantilists and moving to the classical school of economic thought of Adam Smith, David Ricardo, and John Stewart Mill. There will be an introduction to heterodox ideas with a discussion of Karl Marx and his critique of classical economics and the capitalist system. Additionally, theories of economic imperialism by Lenin, Bukharin, and Luxemburg will also be discussed. This is followed by a discussion of the marginalist revolution and neo-classical economics including the works of Jevons, Walras, Menger and Marshall being examined. The transition into the modern era will include the contributions of Friedman, Keynes, and Samuelson. From the Third World perspective, we examine Dependency Theory and Plantation Economy approaches. Finally, we cover the perspectives of the New Classicals, Supply Siders and summarize some current radical approaches. PURPOSE OF THE COURSE:

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This course is designed to deepen students understanding of key schools of economic thought and reintroduce the economists associated with prevalent economic ideas. It aims to help students appreciate how the field of economics has evolved overtime. TEACHING STRATEGIES: The course delivery will take the form of a weekly lecture supported by a weekly tutorial. The three (3) hour lectures will be delivered via PowerPoint presentations. It will involve presentations by groups of three to five students on the various topics covered in the course. This will be accompanied by lecturer discussions following each presentation. The lecturer encourages student participation during classroom discussions and welcomes feedback from students. LECTURER DAY TIME ROOM Ms. Cassandra Rattan Thursday 4-7pm TBA The two (2) hour tutorial classes will be based on tutorial sheets, which will be accessed via myelearning. Tutorial sign-up will be available on myelearning. Tutorials are meant to reinforce key ideas covered in lectures. Tutorial attendance is mandatory for ALL students. University regulations allow for students to be debarred from final examinations, if they do not attend at least 75% of tutorial classes. Student attendance will be monitored regularly to ensure that the regulation is enforced. INSTRUCTOR INFORMATION: LECTURER EMAIL OFFICE HOURS

(ROOM 214) Ms. Cassandra Rattan Cassandra.Rattan@sta.uwi.edu TBA

COURSE ASSESSMENT:

Group Presentation: 20% Final Exam: 80%

Regular class attendance and participation is extremely important since the final exam will be largely based on lecture notes/presentations. You are required to contribute to class discussions with questions or comments (staying silent or only commenting when it is your turn to present is not allowed, also missing more than 2 weeks of classes will incur a penalty).

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The group presentation will be graded on the following areas:

Background research 5 marks

Analysis of Economic Contribution 5 marks

Critical Analysis 5 marks

Presentation and Class Involvement 5 marks

TOTAL 20 marks

The final exam usually consists of six-seven questions with the option to do four (4) questions. The questions usually include a combination of essays and short answer questions. The duration is 2 hours. COURSE CONTENT:

I. Origins of Modern Economic Thought

− Introduction and Overview of Course − Early Pre-classical era : Greeks, Romans, Islamic, Scholastics − The Mercantilists − The Physiocrats: Francois Quesnay and the Tableau Economique

Readings: H. Landreth and D. Colander: Chapter 1, 2 and 3 Pressman: “Francois Quesnay” pp. 13-17.

II. Classical Political Economy

− Adam Smith: (1723-1790): An Inquiry into the Nature and Causes of the

Wealth of Nations, Theory of Value. − Thomas Malthus (1766-1834): An Essay on the principle of population,

Corn Laws… − David Ricardo (1772-1823): Essay on the Influence of a Low Price of

Corn on the Profits of Stock, Principles of Political Economy and Taxation.

− J.S. Mill (1806-1873) Readings: H. Landreth and D. Colander: Chapter 5, 4 and 6 Pressman: “Adam Smith” pp. 20-26 Pressman: “Thomas Malthus” pp. 29-32. Pressman: “David Ricardo” pp.35-40. Pressman: “J.S Mill” pp. 44-47.

III. The Critique of Capitalism and Classical Political Economy

− Karl Marx: (1818-1883) Labour Theory of value, Theory of History, Marxian Laws of Capitalism.

Readings: H. Landreth and D. Colander: Chapter 7 Pressman: “Karl Marx” pp. 48-53

− Vladimir Lenin (1870 – 1924, Imperialism: The Highest Stage of

Capitalism) − Nikolai Bukharin (1888 – 1938, Imperialism and World Economy)

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− Rosa Luxemburg (1871-1919, The Accumulation of Capital)

Imperialism/Capitalism

− The Austrian School: Carl Menger (founder, 1840-1921), F. von Hayek,

L. von Mises, F. von Wieser, E. von Bohm-Bawerk. Readings: Pressman: “Carl Menger” pp. 60-64

Pressman: “Friedrich Hayek” pp. 116-120 Pressman: “Eugen Bohm-Bawerk” pp. 81-84

IV. The Rise of Neo-Classical Economics:

− Marginalist Revolution(marginal utility analysis): Leon Walras (1834-

1910, General Equilibrium), William Stanley Jevons (1835-1882 ) and Carl Menger(1840-1921, subjective value theory)

− Neo-Classicals: Alfred Marshall (1842-1924, demand-supply analysis, and Partial Equilibrium), Paul Samuelson (1915-2009, mathematical methodology and neoclassical synthesis), John Hicks (1904-1989, IS-LM curves) and Irving Fisher (neoclassical monetary economics).

Readings: H. Landreth and D. Colander: Chapter 8, 9, 10, 11 and 14. Pressman: “Leon Walras” pp. 53-57. Pressman: “William Stanley Jevons” pp. 57-60. Pressman: “Alfred Marshall” pp. 64-68. Pressman: “Paul Samuelson” pp. 162-166. Pressman: “John Hicks” pp. 136-141.

V. The Keynesian Intervention:

− Keynesian Economics − John Maynard Keynes (1883-1946, The General Theory of Employment,

Interest, and Money) and the Keynesians (James Tobin (1918-2002), etc.)

Readings: H. Landreth and D. Colander: Chapter 15(pp. 433-440) Pressman: “John Keynes” pp. 99-105.

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VI. Monetarism:

− Milton Friedman (1912-2006), Anna Schwartz, Karl Brunner, etc.

Readings: H. Landreth and D. Colander: Chapter 15 (pp. 440) Pressman: “Milton Friedman” pp. 157-162.

VII. Dependency Theory and Third World Reactions:

− Structuralists: Raul Prebisch (1901-1986) − Neo-Marxist Dependency Theorists: Paul Baran (1909-1964 , The

Political Economy of Growth) , Andre Gunder Frank ( 1929-2005, The development of underdevelopment) , Samir Amin (1931- )

− World Systems Theory: Oliver C. Cox (1901 - 1974, Caste, Class and Race) and Immanuel Wallerstein (1930- , World Systems Theory)

− Plantation School: Lloyd Best (1934-2007), Kari Levitt (1923- ), George Beckford (1934 -1990), etc.

− Other Caribbean perspectives: W.A. Lewis(1915-1991)

VIII. New Classicals: − Thomas Sargent (1943- ) and Robert Lucas Jr.(1937- , rational

expectations and Lucas critique) Readings: H. Landreth and D. Colander: Chapter 15 (pp. 443) Pressman: “Robert Lucas Jr.” pp. 193-197.

IX. Supply-Siders: (Reaganomics, trickle down policy, ‘economics of joy’)

− Arthur Laffer ((1940- ), Laffer Curve) − Gary Becker ((1930- ), Crime and Punishment, the Economics of

Discrimination, Treatise on the Family, etc.) − Others: Jude Wanniski, Robert Mundell

Reading: Pressman: “Gary Becker” pp. 185-189.

X. Other Current Radical Approaches:

− Post-Keynesians: Joan Robinson (1903-1983, The Economics of

Imperfect Competition), Hyman Minsky (1919- 1996, The Financial Instability Hypothesis)), Piero Sraffa (1898- 1983), Paul Davidson, etc.

− Institutionalists: Thorstein Veblen (1857-1929, Theory of the Leisure Class and Theory of the Business Enterprise), John Commons (1862-1945) and Wesley Mitchell (1874-1948).

Readings: H. Landreth and D. Colander: Chapter 12 and 17 (pp.509-512)

Pressman: “Joan Robinson” pp. 128-132. Pressman: “Piero Sraffa” pp. 109-112.

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Pressman: “Thorstein Veblen” pp. 88-91.

GOALS/AIMS: The main aim of this course is to introduce students to the development of economic ideas so that they can appreciate and evaluate the current state of economic theory. GENERAL OBJECTIVES:

1. To make the course student-friendly and ensure the information is conveyed in a simple and comprehensive manner.

2. To enhance students understanding of economic theories and various schools of thought.

3. To ensure students become familiar with key economists and their contributions. 4. To adequately cover all the course material within the limited time frame.

RESOURCES: RECOMMENDED TEXT: Landreth, H. and Colander, D. (2002) History of Economic Thought, Fourth Edition, Boston: Houghton-Mifflin. SOME OTHER USEFUL TEXTS: Ekelund R.B. and Herbert, R.F. (1997) A History of Economic Theory and Method, New York: McGraw Hill, Fourth Edition. Blaug, M. (1986) Economic Theory in Retrospect, London: Cambridge University Press, Fourth Edition. Niehans, J. (1990) A History of Economic Theory: Classic Contributions, 1720-1980, Johns Hopkins University Press.

Rubin, I.I. (1979) A History of Economic Thought, London: InkLinks. Schumpeter, J.A. (1997) Ten Great Economists: from Marx to Keynes, London: Routledge. Colander, D. (1983) Conversations with Economists: New Jersey: Rowman and Allanheld.

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Pressman, S. (1999) Fifty Major Economists, Routledge. (Available online through the library website) Arestis, P. and Sawyer, M. (2000) A biographical dictionary of dissenting economists, Edward Elgar Publishing, Cheltenham, United Kingdom. . (Available online through the library website) Best, L. (2012) Transforming the plantation economy: Economic Policy and Management choices Trinidad and Tobago (1950-2005), Lloyd Best Institute of the West Indies. Occasionally, readings may be sourced from various journals such as:

− The Journal of the History of Economic Thought (HET) − The Review of Radical Political Economy (RRPE) − The American Economic Review (AER)

WEBSITES: McMaster University Archive for the History of Economic Thought: http://socserv.mcmaster.ca/econ/ugcm/3ll3/ Excerpts from Landreth and Colander (1994): http://www.economictheories.org/ Nobel Prize Winners in Economics (useful source of information for economists such as Robert Lucas Jr., Thomas J. Sargent, Gary Becker, Sir Arthur Lewis, Milton Friedman and Paul Samuelson): http://www.nobelprize.org/nobel_prizes/economic-sciences/laureates/index.html Library of Economics and Liberty: http://www.econlib.org/index.html DEPARTMENTAL EVENTS:

1. Attendance at Demas/Rampersad Seminar Series: students can refer to the Departmental website and announcements will be made in class.

IMPORTANT POLICIES: REGULATIONS: Please refer to the Examinations Booklet (available online) for information on the following regulations:

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General Examination Regulation:

19. Any candidate who has been absent from the University for a prolonged period during the teaching of a particular course for any reason other than illness or whose attendance at prescribed lectures, classes, practical classes, tutorials, or clinical instructions has been unsatisfactory or who has failed to submit essays or other exercises set by his/her teachers, may be debarred by the relevant Academic Board, on the recommendation of the relevant Faculty Board, from taking any University examinations. The procedures to be used shall be prescribed in Faculty Regulations.

Cheating 97. (i) Cheating shall constitute a major offence under these regulations.

(ii) Cheating is any attempt to benefit one’s self or another by deceit or fraud. (iii) Plagiarism is a form of cheating (iv) Plagiarism is the unauthorized and/ or unacknowledged use of another person’s

intellectual effort and creations howsoever recorded, including whether formally published or in manuscript or in typescript or other printed or electronically presented form and includes taking passages, ideas or structures from another work or author without proper and unequivocal attribution of such source(s), using the conventions for attributions or citing used in this University.

103. (i) If any candidate is suspected of cheating, or attempting to cheat, the

circumstances shall be reported in writing to the Campus Registrar. The Campus Registrar shall refer the matter to the Chairman of the Campus Committee on Examinations. If the Chairman so decides, the Committee shall invite the candidate for an interview and shall conduct an investigation. If the candidate is found guilty of cheating or attempting to cheat, the Committee shall disqualify the candidate from the examination in the course concerned, and may also disqualify him/her from all examinations taken in that examination session; and may also disqualify him/her from all further examinations of the University, for any period of time, and may impose a fine not exceeding Bds$300.00 or J$5000.00or TT$900.00 or US$150.00 (according to campus). If the candidate fails to attend and does not offer a satisfactory excuse prior to the hearing, the Committee may hear the case in the candidate’s absence.

ADDITIONAL INFORMATION:

LECTURER’S IN-CLASS RULES:

• Please turn off or switch your mobile phones to vibrate or silent modes during classes.

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• Please pay attention and ask questions. • Please refrain from any distracting behavior or activities during class time.

HOW TO APPROACH THIS COURSE:

1. Attend ALL lectures. Please don’t disregard the importance of these sessions! 2. Read what you can on the lecture topics each week BEFORE class. 3. Ask questions…don’t be afraid to approach the lecturers or tutors to address any

concerns you may have…we’re here to assist you! 4. Attend tutorials and attempt ALL questions…this is a way to personally assess

whether you understand what is being taught in lectures. 5. Attempt past paper questions after the completion of each topic…this helps you

become more familiar with the material and the requirements of the exam. Practice makes perfect!

6. Always begin studying early…don’t procrastinate! COURSE SCHEDULE:

WEEK TOPICS

1 • Introduction • Early Pre-classicals • Mercantilists and Physiocrats

2

• Classical Political Economy: Adam Smith • Classical Political Economy: Thomas Malthus • Classical Political Economy: David Ricardo • Classical Political Economy: J.S. Mill

3

• Critique of Capitalism and Classical P. Economy: Karl Marx • Critique of Capitalism and Classical P. Economy: Lenin, Bukharin,

Luxemburg • Critique of Capitalism and Classical P. Economy: Austrian School

4 • Marginalist Revolution: Walras, Jevons, Menger • Neo-classical: Marshall, Samuelson, Irving Fisher

5 • Keynesian: Keynes and the Keynesians • Monetarists: Friedman

6 • Dependency Theory: Baran, Frank, Prebisch, Amin, Cox, Wallerstein • Plantation School AND W.A Lewis

7 • New Classicals: Sargent, Lucas Jr. • Supply-siders: Laffer, Mundell, Becker

8 • Radical approaches: Post-Keynesians • Radical approaches: Institutionalists • Review and Exam discussion