HISTORY OF ECONOMIC THOUGHT�PRESENTED�BY���

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Dr. D.Hema

Assistant Professor

Department of Economics

Cardamom Planters’ Association College

Bodinayakanur .

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INTRODUCTION

• History economic thought as the title implies deals with the origin and development of economic ideas and their inter relations.
• It is different from Economic History and History of Economics .
• It deals with the development of economic ideas.
• Economic history is a study of the economic development of a country.
• History of economic deals with the science of economics.

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CONT...

• Economic ideas are directly and indirectly motivated by the economic conditions and environment of the country.

Definition:

• Prof.Schumpter holds that ‘’economic thought is the sum total of all the opinion and desires concerning economic subjects especially concerning with public polices of different times and places’’.

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HISTORY OF THE DEVELOPMENT OF ECONOMIC IDEAS

• Economics ideas under the three periods

1,Ancient

2,Medieval

3,Modern

History of economic thought broadly divided into two parts.

1,First part deals with the origin and the development of ideas before the development of economics as a science.

2,Second part deals with the economic ideas after the development of economics as a science.

HISTORY OF ECONOMIC THOUGHT ANALYSED BY DIFFERENT APPROACHES

• Chronological approach
• Conceptual approach
• Philosophical approach
• Deductive or classical approach
• Inductive approach
• Neoclassical approach
• Welfare approach
• Institutional approach
• Keynesian approach

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SIGNIFICANCE OR IMPORTANCE OF HISTORY OF ECONOMIC THOUGHT

• Study of History of economic thought clearly shows that there is a certain unity connects us with ancient times.
• Study of economic thought will help us to understand the origin of economics.
• Economic ideas are conditioned by time, place and circumstances.
• A study of economic thought provides a broad basis for comparison of different ideas.
• The study of History of economic thought will enable us to know the person responsible for the formulation of certain important principles.

WHY STUDY THE HISTORY OF ECONOMIC THOUGHT?

• Aids in the understanding of economics .
• Provides an introduction to part of intellectual history.
• Provide a perspective of our past in the development of economic thought and relate this past to current economic thought.
• Learn about people as well, i.e.,we learn about the philosophers and economists who developed economic reasoning, the modeling,and descriptions of economic activity.
• Illustrate how ideas develop and change within academic disciplines.