1a ea A közgazdaságtan története.pdf

# Overview of economic theories This section provides a historical overview of economic thought, outlining the lineage and genealogical tree of major economic schools of thought relevant to macroeconomics [2](#page=2). ### 1.1 The genealogical tree of economics The study of economic theories will proceed chronologically in the upcoming macroeconomics lectures. To establish a framework for these studies, this section offers a concise historical overview of economics, with a focus on macroeconomic implications [2](#page=2). The provided genealogical tree illustrates the historical development and relationships between various economic schools of thought [3](#page=3). ### 1.2 Major economic schools of thought The following are key economic schools of thought and their approximate historical periods: * **Mercantilism:** XVII-XVIII centuries [3](#page=3). * **Physiocracy:** Quesnay, 1758 [3](#page=3). * **English Classical Economics:** XVIII-XIX centuries [3](#page=3). * **Marxian Economics:** Karl Marx, 1867; Engels (1820-1895); Lenin (1870–1924) [3](#page=3). * **Neoclassical School:** 1870- [3](#page=3). * **Keynesianism:** 1930- [3](#page=3). * **Neoclassical Synthesis:** 1950- [3](#page=3). * **Monetarism:** 1970- [3](#page=3). * **Contemporary Economic Theories:** [3](#page=3). > **Tip:** Understanding the historical progression of these theories is crucial for grasping the evolution of macroeconomic thought and the context behind different policy approaches [2](#page=2). --- # Early economic schools of thought This section delves into the foundational economic schools of thought that shaped early economic policy and theory, specifically mercantilism, physiocracy, and classical English economics [4](#page=4) [5](#page=5) [6](#page=6). ### 2.1 Mercantilism Mercantilism, prevalent in England and France during the 17th and 18th centuries, posited that a nation's wealth could be expanded through the influx of gold into the country. Proponents believed that state intervention was crucial for establishing order and regularity in economic processes. A central tenet was the importance of foreign trade, advocating for an open economy [4](#page=4). Key instruments of mercantilist policy included: * Imposing low export duties and high import duties, a strategy known as protectionism [4](#page=4). Jean-Baptiste Colbert is considered a principal figure associated with this school of thought [4](#page=4). ### 2.2 Physiocracy The physiocratic school of thought emphasized the idea that only a self-regulating economy, operating without state intervention, was truly functional. François Quesnay was a leading figure, notably authoring "Tableau Économique" (Economic Table) in 1758. Physiocrats investigated closed economies, developing what can be considered early macroeconomic models. They identified land and agriculture as the fundamental basis of the economy [5](#page=5). ### 2.3 Classical English economics Classical English economics, also known as English bourgeois economics, laid significant groundwork for modern economic theory [6](#page=6). #### 2.3.1 Adam Smith Adam Smith (1723-1790) is a towering figure in this school, most famous for his seminal work, "The Wealth of Nations," published in 1776. Smith described the free-market form of capitalist economy. He formulated the theory of the "invisible hand," which explains the market's self-regulating mechanism. A core belief was that the economy could function effectively without government intervention. Smith is also recognized as an early proponent of the labor theory of value, arguing that only human labor can create value. Furthermore, he developed the theory of the division of labor based on absolute advantage [6](#page=6). #### 2.3.2 David Ricardo David Ricardo (1772-1823) also championed the labor theory of value, building upon Smith's ideas. He represented the interests of the capitalist class. Ricardo's significant contribution was the theory of the division of labor based on comparative advantage [6](#page=6). --- # Development of modern economic theories This section outlines the evolution of major economic theories from Marxist economics to monetarism, highlighting their core tenets and historical context [10](#page=10) [11](#page=11) [7](#page=7) [8](#page=8) [9](#page=9). ### 3.1 Marxist economics Marxist economics, largely developed by Karl Marx in "Das Kapital" (Volume I, 1867), represents a comprehensive critique of the capitalist order and a theoretical conclusion to the early phase of capitalist economic thought. Marx analyzed the inherent instability of capitalism within a systemic framework. His theories were further developed by followers such as Friedrich Engels and Vladimir Lenin, and continue to influence contemporary economic thought through neo-Marxist theories [7](#page=7). ### 3.2 The neoclassical school Emerging around the 1870s, the neoclassical school primarily focuses on microeconomic analysis, particularly consumer behavior, with macroeconomic theories often seen as a byproduct of this micro-level examination. A central tenet is the self-regulating nature of the economy, often referred to as the "invisible hand" theory, which suggests that the market functions effectively without external intervention. This school advocates for a minimal state role, limited to that of a "night watchman". It posits that economic problems are self-correcting. The neoclassical school is also known as marginal economics due to its emphasis on marginal analysis, involving concepts like marginal utility (MU) and marginal cost (MC). Key figures include Alfred Marshall, Léon Walras, and William Stanley Jevons [8](#page=8). ### 3.3 Keynesianism Keynesianism emerged in response to the severe global economic crisis of 1929-1933, which demonstrated significant problems within capitalist economies, necessitating new theoretical approaches. John Maynard Keynes is considered the founder of modern macroeconomics. He established that capitalist economies are demand-constrained, meaning aggregate demand (AD) is less than aggregate supply (AS), leading to "insufficient demand". This necessitates state intervention to boost demand, primarily through fiscal policy, by managing government's current account items. The secondary role of the state is to mitigate economic crises, and a tertiary role is to strengthen investment by acting as a primary investor. Keynes also introduced psychological factors and expectations into economic thinking [9](#page=9). ### 3.4 The neoclassical synthesis The neoclassical synthesis, originating in the 1950s, theorizes the mixed economy, which combines the private sector and the state. This theoretical development occurred during a period of post-war reconstruction. It represents a higher-level integration of neoclassical economic principles with Keynesian views. The synthesis suggests that the neoclassical school's theories are effective when the economy is functioning smoothly, requiring no state intervention. However, when economic problems arise, Keynesian theory becomes relevant, necessitating state intervention. Prominent proponents include Robert Solow (Nobel Prize, 1987) and Paul Samuelson (Nobel Prize, 1970) [10](#page=10). ### 3.5 Monetarism Monetarism, prominent from the 1970s, focuses on the theory of mature, self-regulating capitalist economies. Its leading figure is Milton Friedman (Nobel Prize, 1976). The core idea is that state intervention is unnecessary and ineffective because the real economy is autonomous. The emergence of inflation in the early 1970s, identified as a monetary problem, led to the belief that it should be managed with monetary tools. Monetarism posits that the state's primary task is to supply the economy with an appropriate quantity of money, which can indirectly influence economic activity. The state should intervene only through monetary policy instruments. A new element introduced by monetarism is the concept of adaptive expectations, which projects past trends into the future [11](#page=11). --- # Contemporary economic theories Contemporary economic theories encompass a diverse range of schools of thought that engage in ongoing debates about the functioning of economies and the role of government intervention. These diverse perspectives reflect different analytical frameworks and policy recommendations, with notable economists contributing significantly and often being recognized with Nobel Memorial Prizes in Economic Sciences [12](#page=12). ### 9.1 Major contemporary economic schools of thought Several key schools of thought characterize the contemporary economic landscape: * **Post-Keynesian theories:** This school, represented by economists like Kaldor and Harrod, focuses on issues such as effective demand, income distribution, and the inherent instability of capitalist economies, often emphasizing the role of uncertainty and expectations [12](#page=12). * **Neoclassical synthesis:** This approach, prevalent for a significant period, attempted to reconcile Keynesian macroeconomics with neoclassical microeconomics, finding common ground between short-run demand management and long-run supply-side considerations [12](#page=12). * **Monetarism:** Primarily associated with Milton Friedman, monetarism emphasizes the crucial role of the money supply in determining inflation and economic activity. It advocates for stable monetary policy rules rather than discretionary intervention [12](#page=12). * **Neo-Keynesianism:** This group of economists, including Nobel laureates James Tobin and Franco Modigliani refined and extended Keynesian ideas, incorporating more rigorous microeconomic foundations and analyzing issues such as asset pricing, consumption behavior, and financial markets [12](#page=12) . * **New classical macroeconomics:** Spearheaded by Nobel laureate Robert E. Lucas this school posits that economic agents have rational expectations and that government intervention is largely ineffective because individuals anticipate and neutralize policy changes. New classical economists argue that only the market, driven by the behavior of fully informed entrepreneurs, can determine economic outcomes [12](#page=12) . ### 9.2 Debates and Nobel Memorial Prize in Economic Sciences The intellectual landscape of economics is marked by continuous debate among these various schools of thought, with periods of dominance shifting over time. The Nobel Memorial Prize in Economic Sciences, established by the Sveriges Riksbank in 1968 to commemorate its 300th anniversary and awarded since 1969, recognizes significant contributions to economic science and often highlights the work of leading figures within these contemporary theoretical frameworks [12](#page=12). > **Tip:** Understanding the core tenets of each school of thought and the key economists associated with them is crucial for navigating discussions on contemporary economic policy and theory. Pay attention to how their assumptions about economic agents and market mechanisms lead to different conclusions. --- ## Common mistakes to avoid - Review all topics thoroughly before exams - Pay attention to formulas and key definitions - Practice with examples provided in each section - Don't memorize without understanding the underlying concepts

| Term | Definition | |------|------------| | Mercantilism | An economic theory and practice that flourished in Europe from the 16th to the 18th century, emphasizing national wealth through a positive balance of trade, especially in gold and silver, and advocating for state intervention through protectionist policies. | | Physiocracy | An economic theory that emerged in France in the 18th century, positing that the wealth of nations derived solely from the land and that agriculture was the only productive economic activity, advocating for a laissez-faire approach with minimal government intervention. | | Classical economics | A school of economic thought that originated in the late 18th century, focusing on the free market, the division of labor, and the theory of value based on labor, with prominent figures like Adam Smith and David Ricardo. | | Labor theory of value | A theory that states that the economic value of a good or service is determined by the total amount of socially necessary labor required to produce it, a concept central to classical and Marxist economics. | | Invisible hand | A concept introduced by Adam Smith, describing the self-regulating nature of the marketplace where individuals pursuing their own self-interest inadvertently benefit society as a whole. | | Comparative advantage | A theory developed by David Ricardo, suggesting that countries should specialize in producing goods and services where they have a lower opportunity cost, even if they do not have an absolute advantage, to achieve mutual gains from trade. | | Marxist economics | An economic theory developed by Karl Marx, critically analyzing capitalism, focusing on class struggle, exploitation, and the inherent contradictions within the capitalist system, and predicting its eventual overthrow. | | Neoclassical school | A school of economic thought that emerged in the late 19th century, emphasizing microeconomic analysis, consumer behavior, marginal utility, and the concept of a self-regulating market economy with minimal state intervention. | | Marginal analysis | A method of analysis that examines the effects of small changes or increments in economic variables, such as marginal utility ($MU$) or marginal cost ($MC$), to understand decision-making and market outcomes. | | Keynesianism | An economic theory developed by John Maynard Keynes in response to the Great Depression, arguing that aggregate demand is a primary driver of economic activity and advocating for government intervention, particularly through fiscal policy, to stabilize the economy and combat unemployment. | | Aggregate demand | The total demand for goods and services in an economy at a given overall price level and a given time period, represented as the sum of all goods and services that businesses, households, government, and foreign purchasers are willing to buy. | | Monetarism | An economic theory that gained prominence in the 1970s, led by Milton Friedman, emphasizing the role of money supply in influencing economic activity and inflation, and advocating for limited government intervention, primarily through monetary policy. | | Neoclassical synthesis | A theoretical framework that emerged in the mid-20th century, combining elements of Keynesian economics and neoclassical economics, suggesting that while markets are generally self-regulating, government intervention may be necessary during economic downturns. | | Adaptative expectations | A theory suggesting that individuals form their expectations about future economic conditions based on past trends and gradually adjust them as new information becomes available. |