History of Economic Theory

The course outlines the relationship between the two central issues of scarcity and uncertainty, with different forms of socio economic organization, such as hunting-gathering, pastoral and agrarian socio economic organization. The next historical epoch consists of decline of feudalism, the emergence of the nation state, the mercantile revolution, the Reformation of the Church, the new philosophy and the birth of reason as a driving force in human thought. The economic ideas of Adam Smith and the concept of the invisible hand as an economic variant of natural order are discussed. Then the discussion on the positions of Ricardo and Malthus on the political economy of the market economy is followed. This course looks at the developments in economics subsequent to classical political economy. Socialism and the works of Marx constitute the chronological and logical sequel to Classical political economy. (from nptel.ac.in)