Index of Subjects
‘absolute surplus-value 147 absolute value 100, 107 ‘absolutist’ 6
acceleration hypothesis 338-9 accelerator 243
accumulation of capital, drives growth process 68
AD-AS model (aggregate demand-aggregate supply) 371-2
Adam Smith problem 81 additive theory of price 86
demand as fundamental determinants of
price 72 ‘Age of Capital’ 134 Age of Restoration,
Congress of Vienna (1815) to (1848) revolutions 90
first phase (1815-30) 90 ‘Age of Ricardo’ (1816-48) 91 agency costs, new category that
differs from transaction
costs category 484
‘agrarian protectionism’ 49-50 alternative approaches,
Allyn Young and increasing returns 299-301
from Dmitriev to Leontief 308-13 institutional thought in the inter-war years 304-8
reawakening of Marxist economic theory 313-16
Thorstein Veblen 301-4
America, discovery and century long inflation 38
American Declaration of Independence (1776) 54
American Economic Association, (1885) 209 (1918) Hamilton presented ‘institutional
approach’to 306
Wardman Group of institutionalist economics and 487
American economic history (1880
to 1915) 301-2
American Economic Review (1950) 276
American Economic Review (1973) 422
American Federation of Labour (1881) 302 American neo-institutionalism 476 American post-Keynesians, investigate monetary dynamics 352
An Inquiry into the Nature and Causes of the
Wealth of Nations (1776)
Wealth of Nations see Smith analytical Marxism or rational choice
Marxism approach 503 anthropological reductionism 513-14 anti-bullionists 123-5, 160 anti-Ricardian branch, developed into
neoclassical economics 114 ‘anti-Ricardian reaction’ 2, 102-4 anti-Ricardians 101, 103, 168, 171 apprentice, not paid on basis of his
productivity 78
approaches to institutional analysis, contractarian neo-institutionalism 476-9 evolutionary neo-institutionalism 489-91 Hayek and the neo-Austrian school
495-500
irreversibilities, increasing returns and complexity 491-5
the new ‘old’ institutionalism 484 9
the ‘new political economy’ and surroundings 475-6
utilitarian neo-institutionalism 479-84 arbitrage operations, gold and money 43 Arkwright’s water-frame (1768) 54-5 Arrow-Debreu,
model of intertemporal equilibrium 285 works,
‘Existence of and Equilibrium for a
Competitive Economy’ (1954) 381 first fundamental theorem of welfare economics (1951) articles and 397 second fundamental theorem of welfare economics 397
Arrow-Debreu-McKenzie, general-equilibrium model 3, 394 ‘On Equilibrium in Graham’s model of
World Trade and Other Competitive Systems’ 381 Association for Evolutionary Economics
(AFEE) 487
at the threshold of the millennium, modern and post-modern 461-6
atomism, economic agent’s preferences formed without others’ preferences 463
auctioneer, the 238, 347-8, 364, 391, 395-6 Austrian school,
concept of time as irreversible succession of moments 216
joins the mainstream 217-18 subjectivism and 215-17 theory of wages fund and 120, 178, 191 Wieser and 215
Austrian War of Succession (1741) 54 avarice, impulse to accumulate 78 average profit margin of industry, average degree of monopoly and 260
Bank Charter Act (1844) ( also known as ‘Peel Act’) 126
English economy able to expand without problems of external equilibrium 127 suspended (1847), (1857) and partially (1866) 127, 189
bank credit, reductions in cause decrease in investment, production and employment 141
Bank of England,
drastic cut in issues 124-5 excess of issues by 122 should maintain gold reserve (£15-18 million) for temporary drains 127 usury laws forced to expand credit when profit above 5 per cent discount rate 129
bank, the 23
banking multiplier 127 banking school,
Marx and 159
money supply endogenous and Bank of England incapable of controlling it 126 problems for gold reserves from exogenous and commercial difficulties 127 bankruptcies, intertwining of credit and debt may bring chain of 160 bargaining negotiation 208 base orientations 9-10, 13
Belgium 111
Belle Epoque 196-8 ‘benevolent action’ 402
Benthamian doctrine, interpreted in different ways 396
Berle and Means, Modern Corporation and Private Property (1932) 414 beyond homo oeconomicus 512-15
‘Big Seven’ industrialized countries, conferences 325
bill of exchange 23
Bolshevik Revolution 232
bourgeois class, general interest of the nation and 69
bourgeoisie, undermining old aristocracy 23 Bowley’s Law 259
Bretton Woods (1944) 323-4, 458
British East India Company (1600) 35 Brouwer’s fixed-point theorem 282 ‘Bullion Committee’ (1810) 122-3 bullionism, characterized by conviction that money or gold was the wealth 32 bullionist economists 33-4, 123, 125 currency school and (1825) crisis 125 Restriction Act as illicit government interference 123
Cambridge equation 235, 250, 255, 356 Cambridge Pigouvian economics 275 Cambridge post-Keynesian theories (1950s and 1960s), opposition to Solow-Swan type 353
Cambridge theory of distribution 351 Cannan-Marshall-Pigou line of thought 291 Canonists and preachers, raged against speculative practices 25
capital,
‘concentration’ and ‘centralization’ 158 great debate on theory of (1960s) 217 marginal efficiency depends on psychological factors 254 marginal productivity of 178-9 result of abstinence from consumption of capitalists 119
social relationship 145 wages fund and 118-21 capital movements, enormous speculative bubbles 458
capitalism 172 competitive and trustified 264 ensures productive and allocative efficiency 203
historical nature of according to Marx 145 instability of 253
real dynamics generated by ‘innovator entrepreneur’ 263
theory of monetary circuit and analysis of structural change 500-1 unemployment is integral part of 262 capitalist accumulation, role of housework in 510
capitalist societies 70, 164, 266 capitalists 69, 80, 501, 507 ‘capitalization equations’ 186 cardinal utility, abandoned 226 Cartesian philosophy 45 Cartesian rationalism 31
‘catastrophist’ view or ‘discontinuist’ 5 Catholic view of society, ‘mystic body’ 134 chair socialists 179, 190
Chartistmovement 91, 133, 140
Chicago, Keynes and Harris Lectures 251 Chicago School 404, 420
choice basis of the actions 396
Christian to agrarian socialism 2 circulating capital, buys raw materials and pays for labour and energy 68-9 ‘citizenship club’ 410 city economies, twelfth and thirteenth centuries 19
civil authority, repeated acts of obedience and 66
civil humanism 23-4, 59
classical savings hypothesis, workers do not save 356
classical economics, capitalistic system and 109, 166-7
classical economists, unsatisfactory theory of income distribution 171
classical economists and Marx, dynamic which evolves through historical time 445 classical liberalism 44
classical macroeconomics, problems with rationality of expectations 343
classical situation, new (1890s) 2
‘classical situations’, Schumpeterian notion 6 ‘classical unemployment’, disequilibria when real wages too high 350
‘clipping’ 38, 43 co-operative games, multiplicity of possible equilibria 430
colonial war between England, France and Spain (1754-63) 54
commercial policy, protectionist 35
Common Market 323
Communes, as autonomous states independent of imperial rule 23-4 communis aestimatio principle, wage adequate to social status of worker 20
community, selling ‘concessions’ to pollute 403 commutative justice 22
‘comparative value’, equivalent to Smith’s ‘exchange’ value 107
compensation, considered to be interest not usury 21
‘compensation tests’, ‘potential welfare’ and 293, 295
competition,
diffusion of innovations and 263-5 quickest road to efficiency 464 competitive market, no better alternative 464 ‘complexity, modern theory of systems and 496
concept of locatio operarum, end of feudal discipleship 23
condemnation of usury, Aquinas and Aristotle 21
conditions of competitive equilibrium 73 Congress of Vienna (1815) to (1848) revolutions, Age of Restoration 90 ‘consequentialism’ 396 constitution of Corpus iuris civilis 23 consumers 182-3, 185 contemporary economic theory, neoclassical mainstream in defining ontological assumptions 513 contemporary Marxists, theory of labour or theory of exploitation 452
contested exchange 507
Continental classical tradition, taken to extreme conclusions 102
Continental economists, felt no need to offer justification of private property 49-50 Continental middle class, the Enlightment and 82
Continental socialists 2
contractarian approach, deals with economic subjects in explicit way 477-8
contractarian neo-institutionalism, ‘process oriented’ and ‘end-state’ 477
controversy on marginalism in theory of firm and markets,
critiques of neoclassical theory of the firm 413-15
managerial and behavioural theories 418-20 neocalssical reaction and new theories of the firm 420-3
post-Keynesian theories of the firm 415-17 Corn Laws (1816-46) 91-2
‘Cournot and Walras Equilibrium’ (1978) 280 credit, demand for, kept high by speculation on goods 160 ‘Credit Anstalt', collapse of (1931) 246 ‘Crises and Cycles in the Development of Economics' 7
‘crowding-out thesis', modern reformulation of ‘treasury view' 336-7
Cugnot, steam-driven carriage (1769) in France 55
cultural revolution, revival of arts and 23 currency school, principle of ‘metallic fluctuation' 125
cyclical fluctuations 265-6
Darwinian theory 433, 487, 490 ‘dearth of money' 160
debate on economic calculation under socialism,
the dance begins 295-6
Hayek's criticism 298-9 neoclassical socialism of Lange and Lerner 296-8
Declaration of Rights (1689) 66 ‘deconstruction', post-modern critical spirit and 462
decreasing returns in agriculture 62 decreasing-cost sectors, firms never become large scale 272
default interest, admitted 21
‘degree of monopoly', measured by Lerner's index 416-17
demographic growth, partially explained by demand for soldiers 36
depression, second half of seventeenth and first of eighteenth century 38-9
‘deterministic chaos' 494
deus ex machina 279, 395
development in new welfare economics and economic theories of justice,
debate about market failures and Coase's theorem 400-4
economic theories of justice 409-13 Sen and the critique of utilitarianism 406-9 theory of social choice: Arrows impossibility theorem 404-6
two fundamental theorems of welfare economics 396-400
diagonal dominance, definition 385 differentiability hypothesis 387 differential rent 94, 108
diseconomies of scale of managerial nature 279 disintegration of classical political economy in age of Ricardo,
anti-Ricardian reaction 102
Cournot and Dupuit 104-7
Gossen and Von Thiinen 107-9
Ricardians-Ricardianism and classical tradition 100-2
Romantics and German Historical
School 109-11
‘disutility' 108 divine law 20 division of labour 68, 300
role in capital accumulation process 46 double entry accounting 23 Dutch East India Company (1602) 35
Eastern Europe, outside Marshall Plan 324 Econometric Society, (1936) 325
(1952) 310, 381 Econometrica,
(1935), ‘A Macroeconomic Theory of Business Cycle' 258
(1953) 382
(1954) 381
(1961) 341
economic agent, self-interested and competitive being 83
economic facts, change through time and space 8
economic historicism, silenced as
‘ Manchestertutri 191
economic ideas of Aquinas and scholasticism, moral rather than scientific ideas 22 economic interdependence, Bretton Woods (1944) to mid (1970s) 458
Economic Journal, The,
(1926) 272
(1931) 242
(1934) 277
(1939) 243 economic laws,
objective characteristic of natural laws 167
same properties as ‘natural laws' 110 economic problems, strictly linked 12 economic propositions of scholasticism, positive law and 20 economic role of scarcity 384 economic theories of justice, questions of efficiency and justice 410-11 Economica (1934) 286 economics,
abandoned Aristotelian and Thomistic ideas 30
as ‘catallactics', science of exchange 103 ceased to be ‘domestic economy and became ‘political’ 35 different schools but all share basic philosophical bearings 462-3 emancipated itself from ethics and political philosophy 29
not ‘Darwinian’ discipline 8 science of same type as natural sciences 110 self-evident truths and 45
‘economics’ (1879), rather than ‘political economy’ 169
economics of information 345 economists,
classical political economy and 44 divided into three groups in (1920s) 233 European in America, general-equilibrium theory and 380
group who developed analysis of costs for adjustment of prices 367
methodical problems in making economic thought a science 45
neo-monetarist idea that stable unemployment always voluntary and 368
use of ‘neo-liberism’ in ironic or derogatory sense 460 economy 82, 362, 441-3 ‘economy as Kreislauf, as circular flow 311 egoism 463, 465 employed workers (insiders), more unionised than unemployed (outsiders) 370 Encyclopedie, impact on culture (1751 and 1776) 55 end-state approach, explains institutional set-up of society with model 477 endogenous growth theory 435-6 England 28, 111
Chartist petition presented to parliament
(1848) 91
conflict (1842-3) 133 evolution of political conflict 90 Fabianism 179
historicists less involved en philosophe than
Germans 179-80
involved with series of wars with France (1793-815) 123
problem of unemployment 245-6 ReformBill 133
Ricardianism, version of classical system 168 spread of capitalism and enclosure 54 stagnation after Napoleonic era 124 ten-hour working day (1850) 112
Whig election victory (1830) 91
English banking system, difficulty in keeping situation under control 164
English Commonwealth (1649) 66
English empiricism 31
English free-trade economics 63
English monetary theories and debates in age of classical economics,
Bank Charter Act 124-7
Restriction Act 121-4
Thornton, Henry 127-9
English Navigation Act (1651), prohibited importation of goods on non-British ships 35
English tradition, political and social implications of value theory and natural-law philosophy 47-8
Enlightenment, The, ideas of ‘reason', ‘experience', and ‘science' 55 entrepreneurs, choose activities with aim of minimizing costs 439
decide on level and composition of production and investment 182 mere co-ordinators who organize productive activity 185 environmental issues 325
Epicurean philosophers, politike oikonomia 30 epochs of economic theory 1-4 equation of exchanges, scientific explanation of price level 234
equilibria, Keynesian unemployment’ and 350 equilibrium situation, forces of demand provide for distribution of capital 73 estimative theory of value 58
Euler theorem 206
European Association for Evolutionary Political Economy (EAEPE) 489-90
European Coal and Steel Community 323
European countries, agricultural depression caused by American corn 164
European Monetary System 325
European post-Keynesians, investigate growth and distribution 352
European wars, wars among nation states 28-9 evaluation of alternative situations 396 evolutionary games 432-5, 498 evolutionary neo-institutionalism, links back to Veblen 490-1
exchange, as exchange of property rights 482
exchange of equivalents 19-20
exchange of securities on the market, venditio sub dubio 26
exchange value of ingots, supply and demand 43
exchangeable value, wages, profit and
rent 71
expectations 237-8,253-4,285,288, 330,340-5 agents and 394-5
endogenously formed 345-6 self-realization of 370
exploitation 143-5, 147, 172 export duties, had to be abolished 35 externalities 400, 403
Fabians 2
factors of production, same as stocks of goods and 183
fall in profits, increase in capitalist control over production process 4
Fascism, bourgeois terror and 233 feminist thought, critique of modernist
economic science 511
financial crises, often assume characteristics of chain bankruptcies 501
financial fragility, ratio between indebtedness of income produced by firms 360 financial globalization, world’s overwhelming phenomenon 458
firms,
act on basis of bounded rationality 419 basic objective is ‘survival’ 419 buy inputs when more convenient than producing them themselves 481
faced with turnover costs 370
large as pool of resources organized by the managers 418
large possess discretional market power 416 linear programming important for 438 main concern price and not quantity to produce 416
as organizations 415
output sold gives rise to revenues 183 tend to leave wages unchanged and lay off excess labour force 369
tend to reduce production to ward off bankruptcy 370
traditional neoclassical view based on three pillars 413-14
why do they exist? 480
First World War, doubts about capitalist system 232 economic growth sustained till 196 fix-price approach, success in (1970
and 1980s) 363-4 fixed capital, machinery, plant, buildings
and 68
flex-price hypothesis 345, 364 5
Florence Commune 25
Florentine Guilds (fourteenth and fifteenth century), operated authentic industrial syndicate 27
flow of new money, elastic with respect to flow of income 124
‘Folk Theorem’ 431
forerunners of classical political economy,
Boisguillebert and Cantillon 49-51
Locke, North and Mandeville 47-9 premisses of a theoretical revolution 43-5 William Petty and ‘political
arithmetick’ 45-7
Fortnightly Review 118
France 28, 42, 111
1848 revolution which became a blood-bath 91
conflict (1844-6 and 1848) 133
evolution of political conflict 90 explosion (1872-3) 172 July Revolution (1830) 91 physiocrats 55
radical egalitarian results in 67
right to strike (1864) 112
spread of capitalism and rise of fermier 54 surplus on balance of payments after World War One 245-6
theory of value and 85
free competition, regulated by law of sympathy 79
free trade 112
free trade revolution 5 free-riding 222, 402, 464-5, 505 free-trade theories 64
freedom 23-4
French ‘regulation’ school 490 from disequilibrium to non-Walrasian equilibrium,
disequilibrium and the microfoundations of macroeconomics 346-7 non-Walrasian equilibrium models 347-51 from the golden age to stagflation 323-5 from utopia to socialism,
birth of the workers’ movement 133-4
Saint-Simon and Fourier 135-8
two faces of Utopia 134 5
full employment 353, 355
‘full-cost rule’ 414
‘fundamental equations’, only valid under full employment 251
fundamental theorems 397, 400-1, 403 funeral and demand for black cloth 72-3 fungible goods, destroyed through use (wine for example) 21
game theory, conflict and co-operation betweem rational decision-makers 428
replicator dynamics in evolutionary 434 game theory and non-uniqueness of general equilibrium, economic agents 464 games, evolution and growth,
evolutionary games and institutions 432-5 game theory 428-32
theory of endogenous growth 435-7 general equilibrium of production and exchange, three properties 397-8
General Theory (1936) 219, 242, 247, 251, 256, 332, 351
atttemps to normalize Keynesian heresy after publication of 325
criticism of Say’s Law 251-2 effective demand and employment 251-4 Hicks and 289-91
liquidity preference 250, 254-8 nominal rigidities an element of stability 368
particular type of equilibrium in 350 post-Keynesians and 352 social philosophy and 257
General Theory of Employment Interest and Money (1936) see General theory (1936)
general-equilibrium model, criticisms of 388-9
general-equilibrium theory, English academic circles and 284
German ad Austrian economists, dispute reached climax (1883) 191
German cameralists, worked at the Kammer or treasury of sovereign 33, 190
German Historical School 2, 111, 189, 191, 210, 393
German historicism, nineteenth-century Romanticism 109-10
German Manchester School 168
German Social Democrats, Marxism as official ideology of 313
Germany 36, 90, 107, 111
Christian socialists and chair socialists 179 explosions (1877) 172
Grosse Depression associated with the Bismarckzeit 164
Giornale degli Economisti 227 globalization, definition 456-9
Glorious Revolution (1688) 66
God’s will, popular consent given to the legislative power of governors 30 gold, inflow and outflow depends on balance of trade 34
Gold Exchange Standard (1970s), abandoned 324
gold reserves, oscillations in could not be influenced by credit policies 126
Gold Standard 196-7, 468 abandonment of 233, 246 ideological nature of doctrine 127 Keynes and 249 return to 245
golden -age growth model, ‘closed’ 355 golden age (1950s and 1960s),
short-lived 324
Gournay’s maxim, ‘laissez faire, laissez passer les marchandises’ 57 government vices 479
Great Britain, post-Keynesians 351
Great Britain (1877), explosions 172
Great Depression,
crisis in capitalist system (1870s and 1880s) 163-4, 196
Fisher and 214-15
‘Gresham’s Law’ 32
gross substitutability hypothesis, crucial to obtain stability 385
growth rate of wealth, equal to that of the capital stock 355-6
Hargreaves’s spinning-Jenny (1764) 54
Trade Cycle, The 243
Harrod-Domar model 243-4, 354 capital-output ratio a constant 356 possibility for capitalist economy to grow at ‘natural’ rate and 334
Heisenberg’s principle of indetermination 495
Hicks-Modigliani macroeconomic- equilibrium model 3
‘high theory ’ years (1920s and1930s) 3 Historical School 109, 110, 192 history of economic thought 3-4
Holland 196
Holy Alliance, internal order in Central and Eastern Europe 90
Holy Roman Empire, dissolution of and national unification process 28
homo oeconomicus 465, 514
reductionism, overcoming a necessary step in reconstruction of economics 514 honourable profit 26-7 human beings, self-interested 84
human intelligence, able to reach truth by speculative method 20
humanism 23, 25, 29
Hungary 196
hypothesis of desirability 387
hypothesis of nominal rigidities, reduction in production consequence of price stability 374
hypothesis of ordered markets or frictionless markets 349
hypothesis of voluntary exchange 348
‘impartial spectator’ 79
‘impatience and opportunity’ theory of interest 213
imperfect market, flow of sales inversely related to price of product 278 implicit contracts, wages maintained stable through time 368
import duties, had to be raised 35 ‘impossibility of a Paretian liberal’ 407-8 improvement in terms of trade, reflect positively on balance of payments 41 increase in industrial wages, no significant increase in industrial-labour supply 36-7
increase in quantity of money, could increase trade surplus rather than rebalance it 41
reduction in price of credit 39
increase in wages, rather than reduction in profits 71
increasing returns of scale, concept of long-run equilibrium and
300, 491-2 problems of 492-3 systems characterized by marked non-linearity 494
incrementalist and catastrophist approaches, criticism of epistemological roots 6
India Committee (1899) 235
‘individual freedom’ 23 individualism, must be justified on philosophical grounds 514 individualistic reductionism, elimination of social classes 167
individuals 80, 513
industrial development, first phase in hands of craftsman 41
‘industrial reserve army’, unemployment 156-7
Industrial Revolution 54, 82 inefficiencies, cure for by externalities, opportune corrective measures 401 inflationary impulses, bad harvests and imports 124
Ingrao and Israel, ‘General Economic Equilibrium: A History of Ineffectual Paradigmatic Shift’ (1985) 392
innovations 264-5
Inquiry into Those Principles Respecting the Nature of Demand and the Necessity of Consumption (1821) 141 institutionalism 2, 300-1, 307-8, 484 ‘institutionalist approach’,
school of thought by Veblen and Commons 305-6
survived and intellectuals continued work 485 insurance 23
intellectual migration, moved by push and pull forces 513
interest, remuneration, not of savings, but of capital 120
International Monetary Fund 323, 458 international trade,
slow-down in growth 164
theories appearing in (1920s and 1930s) and 492
intrinsic value (bonitas intrinseca), just price and 20
‘invariable measure’ 100
investment, increasing function of rate of profit 155
investments,
decrease as entrepreneur’ confidence falls 254
depend on profit expectations and
the interest rate 260
invisible hand 7, 73-4, 79, 145-6, 257, 335, 391, 397, 499, 506
long way from beneficial effect laissez-faire theorists predicted 486
is of history of institutions, ought to be of the
natural order 74
IS-LM analytical apparatus based on hypothesis that price level datum 371 Italian republics, serfdom abolished at end of thirteenth century 23
Italian tradition, subjective theory of
value 10
Italy 36, 90, 172, 196
the Enlightenment in 58-9
Naples schools 55 post-Keynesians in 351
Japan 196
Jevons’s Law, ‘law of the levelling
of price’ 42
Journal of Economic Issues, Galbraith
and 485
Journal of Law and Economics (1958) 276 Journal of Post-Keynesian Economics 351 Juglar cycles (a decade) 266
‘just’ level for rate of interest, supply and demand of money and 48 just price, Aristotle and 19-20 just price operated by Florence tended to be monopolistic 27
just wage’, communis aestimation principle and 20
justice 80, 409-10 justification approach to economic rationality 410
justification of private property, natural-law philosophy 47
‘k-equilibrium’ 348
Kakutani’s fixed-point theorem 381 Kaleckian conception of widow’s cruse, developed by Robinson 354 ‘Keynes effect’ or ‘windfall effect’ 327 Keynesian, indirect transmission
mechanism 255
Keynesian multiplier 240, 259, 359 Keynesian and neo-classical theory, basic incompatibility between 351
Keynesian problems, necessary to study disequilibrium to account for 346 Keynesian revolution 5, 287 arose from ‘Treasury view’ 247 began by claiming a general theory 12 influenced Gruchy and Foster 487 investments that generate necessary saving for financing 253
Keynesian ‘special case’ 248
Keynesian theory 10, 404, 409-10 Keynesians, discussions between monetarists and 121
King’s Law 47 ‘kinked-demand’ model 415
Kitchin cycles of fluctuations (forty months) 266
Knowledge 436, 497 knowledge of determinates of market prices, understanding origin and growth of profits and 41-2
Kolloquium 280-2, 380
‘new growth theory’ 435
labour, real measure of exchangeable value of all commodities 70
labour commanded, relative price 70-1 labour market, problem of imperfectly competitive markets 37
labour power 172
labour theory of value 46-7, 103, 170, 451 Lady Chatterley's Lover 408
Laissez-faire 114, 476
argument 49, 359, 391
policy 62, 233
laissez-faire revolution (1751-76)
Galiani and the Italians 58-63
Hume and Steuart 63-5 preconditions of Industrial
Revolution 54-5
Quesnay and the physiocrats 55-8 Lakatos’s, methodology of the scientific research programmes 5-6 land and labour, transferred rather than bought and sold 19 landowners,
convinced Parliament to approve Corn Laws 92
propensity to save is zero 69 Lands of Cockaigne 135 Lange-Lerner market socialism, Dobb a critic of 448
‘latent monetary capital’ 160
Latin America 458
Lausanne School 227, 229 ‘laws of development’ 110 laws of movement 157-8
‘laws of tendential movement’ 502
‘leakage 3 in multiplier, caused by savings 242
legal rule, as important as moral rule 79
Lerner’s index 417
lexicographic ordering 470 liberation of labour, abolition of social relations between capital and labour 137
‘life-cycle’ hypothesis 329 linguistic canons, delimit the field of discourse 10-11
liquid reserves, demanded for precautionary motives 255
liquidity preference theory 128-9, 255 literature on ‘real business cycle’ 342 Lloyd George and Liberal Party, employment programme 249, 307
Loans 21, 26
logical positivism, Anglo-American social science and into LSE 292
London, Crystal palace exhibition (1851) 111 London School of Economics 217, 284 love of praise, ambiguous, egotistical and altruistic 78
low level of wages, to discourage ‘vice and idleness’ 65
low price elasticity of imports and/or exports 34
‘Lucas critique’, doubt on stability of IS and LM curves 371
Luddite social uprisings (1808-20) 133
Macmillan Report 251 macroeconomic, microeconomic and institutional components, Smith’s economic theory 74 macroeconomics, based on theory of surplus 74
‘Malthusian population principle’ 36, 82-3, 96-7, 171, 209, 352
management, susceptible to improvement and innovation 279
‘management science’ 163 mannerism, aspect of post-modern discourse 466
manufacturers, opposed Corn Laws 92 marginal calculus 176-7 marginalism,
‘auxiliary hypotheses’ 421
founders not integrated into classical traditions 168
marginalist controversy, post-Keynesian and managerial-behavioural theories 415
marginalist prejudice, parable 443-4 marginalist revolution,
climax of 1870s and 1880s 163-5 conquered academic circles of Western countries 197
freed microeconomics 169 neoclassical theoretical system 165-7 preserved basic philosophy of classical approach laissez-faire 173
reasons for success 170-3 reformulation of terms of economic discourse 224
was it a real revolution? 167-70 marginalist rule, lack of information and 416 marginalist theory 2-3, 82 market,
capable of complete self-regulation 73 neither essentially anarchical nor essentially ordered 509
set of institutions 77
‘market failure’, contractualists and 478 market price, depends on forces of supply and demand 72
market socialism model, ‘pieces’ that do not exist in capitalist market 297-8 market wage 156
forces of supply and demand for labour 96
Marshall Plan, industrial development of European countries 323
‘Marshallian cross’ 199
Marxism 171-2, 179
post-modern condition and 500
Marxist critics, ideology and 390
Marxist economic thought between orthodoxy and revision,
Marxist heresies 449-51
Marxist thought before (1968) 446-9 towards a theory of value with feet on the ground 451-2
Marxist metanarrative, theory of laws of movement of capital 464
Marxist metaphysics, based on concept of homo faber 463
Marxist scholars 6, 452
Marxist school 2
Marxist thought,
1968 crucial year for evolution of 450 exploitation of women function of capitalist relation 511
Marxists,
inclined to snub formal virtuosities 503
‘monetary measure of labour’ 466
Marx’s economic theory,
equilibrium, Say’s Law and crises 154-5 exploitation in the production
process 146-8
exploitation and value 148-51
Marx and the classical economists 142-6 monetary aspects of the cycle and the crisis 159-61
transformation of values into prices 151-4 wages, the trade cycle and the ‘laws of movement’ of capitalist economy 155-9
Massachusetts Institute of Technology (MIT) 335-6
mathematical economics 208, 213, 225, 313, 380
means of subsistence, arithmetical progression 83
measure in labour commanded, does not conflict with conception of profit as a residue 100
mechanical clock, measured time accurately 23 medieval scholasticism, economic problems dealt from moral point of view 43 mercantilism,
bullionism 32-4
demographic theories and policies 36-8 Hume’s criticism 40-1
mercantilist commercial theories and policies 34 5
monetary theories and policies 38-40 Steuart and justification for 65 theories of value 41-3
mercantilist commercial policy, concessions of monopolistic privileges 35 mercantilist psychosis, population scarcity and 35
mercantilist theories 36, 41
mercantilists 36, 39-41, 46, 166, 170 merchant class, identification of interests of important 34-5
merchant-manufacturer 23-4, 28 merchants’ forum 23 mesological approach 6-8 metanarratives, neoclassical takes form of welfare economics 463
Methodenstreit at the end of the century 111 methodological approach, long cycles and 502 methodological individualism, subject and research method of economic
science 393
methodological rules 10-11
microeconomics, based on theory of competitive equilibrium 74
Middle Ages, social consensus maintained by authority and faith 66
‘minimal State’ theorists 477
model of economy producing only corn 93-4 modern economies, inequality found in ability of money to preserve value 47 modern philosophy, born in new universities, and with it science 29
modern ‘scientism’ 461 modernism,
based on belief in universal scope of human reason 462
economic theory from Smith to Arrow 462 monetarism, implications of ‘flex-price’ hypothesis for predominance of supply 345
monetarist counter-revolution,
Act I: money matters 335-7
Act II: ‘you can’t fool all the people all the time’ 337-40
Act III: the students go beyond the master 340-3
IS-LM model fell into disuse 371
was it real glory? 343-6
monetarists, causal link from money to income 358
monetary crises, various capitalist countries (1873, 1890 and 1893) 164
monetary cycle, turning-point triggered by changed behaviour of speculators 160 monetary stability, convertibility not sufficient to maintain 125
monetary theory of production and interest 39
monetary-institutional theory 40 monetary-price-specie-flow mechanism, limited to manufacturing production 41
money,
absolutely secure wealth according to Marx 159
conventional value (impositus∙) 20, 468 derives value from social conventions 47 essential role in process of capitalist production 501
means of exchange 395-6 means of increasing wealth and power 32 replaceable good which is consumed in use 21
reserve-of-value function 395
‘money stimulates trade’ widespread idea 39 money supply,
elastic with respect to income 159 endogenous nature of 359, 501 role of credit in adjustment of 159 moon landing (1969) 324 moral hazard situations, defined 402 ‘most unfavourable circumstances’of production process, quantity produced 120 mouths to feed, increase at expotential rate if not curbed by scarcity 83 multiplier (1931) 242 multiplier and accelerator, interaction between 241, 261-2
Naples University, chair of economics ‘Civil and Mechanical Economy’ 59
Napoleonic wars, reduced imports of food supplies and increased price of cereals 92
Nash equilibrium 429, 432-4 Nash-Cournot equilibrium 106 nation, had to reinvest in form of stock in order to produce new goods 35 nation-states, confrontation with of international capital markets 459-60 national railway networks 112 natural ‘benevolence’ or ‘moral sentiment’ 67 natural law, ‘production in general’ 150 natural law (jus naturalis) 20, 49, 67 natural order, equilibrium of economy and 57, 68
natural prices 46, 72-3, 98, 150 natural wage,
subsistence income 96, 108 ‘value of labour power’and 156 natural-law philosophy 67, 74 nature of labour, level of remuneration and 74-5
Nazism, effects of 281, 380
‘necessary price’, synonym of ‘natural price’ 98
negative utility, expressed in terms of pain 75
Neo-Austrian school 3, 299, 495 neo-Bohm-Bawerkians (1960) 215 neo-conservativism (1970s and 1980s), monetarism and 344 neo-institutionalism (utilitarian), different from contractarian 479 neo-institutionalist approaches 3
neo-Marxism 3
neo-Marxist theories, changes of institutional structures and 502
neo-Schumpeterian theory 422, 502 neo-Walrasin approach to general Economic equilibrium 438, 445
conquest of existence theorem 380-4 consumers and producers 390 defeat on grounds of uniqueness and stability 384-8
Elster and 505
end of a world? 388-94 methodological individualism and 393 temporary equilibrium and money in general equilibrium theory 394-6 neo-Wicksellian 219
neoclassic metaphysics, founded on notion of Homo oeconomicus 463
neoclassical economists 84, 353, 391 criticism of general-equilibrium theory 391
exchange value determined by marginal utility 84
neoclassical orthodoxy, breakdown (1970s, 1980s and 1990s) 3
neoclassical revision of Keynes’s theory of demand for money, three aims 331 neoclassical synthesis,
after Second World War 325
IS-LM model again 325-8
Corrections: money and inflation 330-3
refinements: the consumption function 328-30
simplifications: growth and distribution 333-5 tried to improve Keynes theory of inflation 332
years of high theory and 3
neoclassical theory,
allocation of given resources among alternative uses 165
capitalist world and 390 dynamic macroeconomic models formulated (1890s) 234 individualism entered economic
science 166
institutions, population and technology and 300
marginalist revolution, continuity with classical theory 167-8 post-Keynesian attacks on 3
rigidity of nominal wages not cause of unemployment 368
substitution of objective theory for subjective one 167
‘substitution principle’ 166 neoclassicists, created dissatisfaction among Keynesian economists 350-1 neomonetarism, new classical macroeconomics 340
neomonetarists 341-2, 345, 373 new class of capitalist entrepreneurs, old economic and administrative obstacles and 44
‘new classical macroeconomics’ 3
New Deal 484
‘new economics’, after Neopolonic wars 1 ‘new European Institutionalism’ 489 new industrial economics 422-3 new Keynesian macroeconomics,
comparison between some contemporary schools of macroeconomics 371-4
distant Hicksian background 363-5
need to oppose neo-monetarism of new classical macroeconomists 364
nominal rigidities 365-8
real rigidities 368-71 new Keynesians, accepted some of hypotheses of monetarismand neo-moneratism 365 new political economy,
resumption of old Smithian project 476 study of the properties of alternative legal-institutional configurations 475 new Poor Laws 133, 140 new theory of market forms, general-equilibrium theory as alternative 278 new welfare economics,
identity crisis (1950s) 404
Pareto criterion and compensation tests 292-5
Robbins’ epistemological setting 291-2 Newtonian physics, Marshall and 199 nominalist philosophers, denied existence of the universals 31
non-fungible goods, used without being destroyed (‘durable goods) 21 non-price competition, depends on characteristics and history of industry 416
non-residual theory of profit 71 ‘non-substitution theorem’ 438
no substitution among primary factors 439 ‘non-tatommement process 347, 389 non-Walrasian equilibrium 350, 364 non-Walrasian equilibrium theory 3, 238, 348-9
Occam’s razor 293, 514
October Revolution, central planning as economic basis of socialism 296 oil, price rises (1970s) 324
‘Okun’s law’ 341
‘Old Historical School’ 110,190
‘old’ institutionalism 484
oligopolistic indetermination, close link with game theory 431
oligopolistic markets, firms have both common and conflicting interests 416 one commodity model of economy 158 opening of the modern world, communes, humanism and the
Renaissance 22-7
end of Middle Ages and scholasticism 19-22
expansion of ‘Mercantile’ capitalism 27-9 scientific revolution and birth of political economy 29-32
ophelimity 113,224-5
opportunity cost 21, 108, 178, 192 ordinalism 225-6, 291, 396, 409 ‘Oresme-Copernicus-Gresham Law’ 34 orthodox economies, examine choice under predeterminate constraints 475-6
ostentatious spending, created more jobs than parsimony 49
other incomes, spent on ‘necessary consumption’ essential to production 58
Owenist trade unions 133
Oxford Economic Group 414-15
Oxford Economic Papers (1954, 1955 and 1956) 415
‘paradox of value’ utility gauged by taking account of scarcity of commodity 43
Paraguay, Jesuit Republic in 134
Pareto Law 228
Pareto optimality 209, 222, 227, 228
(1930), ordinalist programme and 203 as competitive equilibrium 398 letter to Pantaleoni (28 December 1899) 225
state and 226-7
Pareto principle, classes of social decisions must be based on utility information 408
Pareto-efficiency criterion, justice and efficiency antithetical 409
Paris Commune 172
‘patriarchy’, new conceptual category 511 ‘perfect foresight’ 237, 341, 355, 383-4 perfect market, single firm can increase sales at current price 278
perfect price 238
period (1815 to 1845), history of economic and socialist thought 2
permanent income, present value of future wealth 330
‘persistence problem’ 342 ‘personal is political’ 511 ‘personnel management’ 163
Phillips curve 333, 337-41, 362, 372 philosophy of individualism, legitimation for economic activity and 44
physiocrats 55, 61, 166
‘Pigou effect’ or ‘real-balance effect’ 326-7 planning,
efficient allocation of resources and 295-6 social struggles and group pressures, capitalism and socialism 510 plurality of interpretations 4-8 point of view 8-14
‘policy evaluation proposition 345
‘political demand’ for economic ideas 7 political economy, concept of economic science secularization process 31
Political Quarterly 262
‘political trilemma’ 460 politics, behaviour of collective agents such as social agents 30
positive law 20
‘positive order’ 67 positive sum game, globalization and 458 ‘positive’ value, utility of goods and 107 post-Keynesian economists, scholars with heterogeneous views 351 post-Keynesian models, fix-price and 364 post-Keynesian models of growth
356, 358
are they realistic? 389, 502 post-Keynesian and new Keynesian approaches,
anti-neoclassical reinterpretations of Keynes 351-3
distribution and growth 353-8
heterodox microfoundations of macroeconomics 360-3
money and the instability of the capitalist economy 358-60 post-Keynesian theories 3, 256
alternative to neoclassical system 12 factors as determinants of the
mark-up 417
strengthened by monetarist discovery 358 in unemployment inflation explained only by impulses from costs 332 post-Keynesians,
cure for inflation should not entail regulating agregate demand 363, 490 innovative contributions to theory of the firm 360
prices determined by cost of production and 417
reject both short-run and long-run Phillips curve 362
rejected monetarism and neo-monetarism en bloc 364
variable cost curve of business flat till all plants utilized 361 post-Marxist thought, rejects idea of ‘a subject history’ 509 post-Marxists, developed in opposite direction to analytical Marxists 508 post-modern condition, man who acknowledges his finiteness 461 post-modern radical thought, overcoming orthodox Marxism 508 ‘post-Smithian’ economics 83 ‘post-Smithian’ revolution, beyond
Homo oeconomicus and Homo faber 465-6
‘potential surplus’ 447 poverty, notion of relates to average income 459
pre-industrial period, elasticity of exports not very high 41
price of money, depends solely on forces of supply and demand 160-1
price stability, consequence of decisions to reduce production 374
price theory, Keynesian matters and (1930s) 293
price Wicksell effect, real Wicksell effect and 219
price-specie-flow mechanism 40, 63-4, 122,
128
prices 39, 45, 362
prices of commodities, natural value by small oscillations 45
prices in Europe, tripled from (1500 to 1650) 27
prices of goods must change, wages increase and 99
principle of decreasing marginal utility 103,
224
‘prisoner’s dilemma’ 401, 404, 430-1, 435, 464 private property, Aquinas and 21-2 prix fondamental 58
problems of economic dynamics,
economic hard times 232-4
the Harrod-Domar model 243-5
money in disequilibrium 234-6
the multiplier and the accelerator 241-3 production and expenditure 238-41 Stockholm School 236-8
problems of stability and uniqueness 386-7, 391
‘process oriented, process justifies result not vice versa 477
‘producer surplus’ 107
‘production equations’ 186
‘production in general’, definition 151 production process, primary requisite is labour 119
‘productive service’, labour, capital and land 86
profit 71, 74, 103-4, 155, 259
expectations 256-7, 261
profits and losses from exchanges at market prices, penalties for efficiency 43
profits and over-production 96-7 profits and wages 95-6 property rights 44
property unevenly distributed, workers not paid value of their labour 150 psychology of individuals, theories of value and distribution and 75-6
‘public’, sum of private citizens 48
Public Choice School 478-9
public goods, characterized by absence of rivalry in consumption 401-2
public welfare, new sphere of State activity and 31
pure economic theory, compact doctrinal corpus 198
‘putting-out system’, England and
France towards end of sixteenth century 28 quantity of labour commanded, quantity of embodied labour 70
quantity of money to value of transactions, mercantilist economists and 40
quantity theory 38, 45, 63
quantity theory of money 34, 38, 64 Quarterly Journal of Economics (1872) 218 Quarterly Journal of Economics (1966), issue on capital theory 441
Rabelaisian Abbey of Theleme 135
Radcliffe Report of the Committee on the Working of the Monetary System (1959) 358
radical political economy, analytical Marxism 503-8 the feminist challenge 510-12 monetary circuit and structural change theories 500-3
post-Marxism 508-10
Rambouillet (Paris) summit (1975) 458 ‘rate of substitution’ 60
rates of returns, level out among various economic activities 45-6
rational expectations, ‘perfect foresight’ 237, 341
rational-expectation models 344
Reagan and Thatcher era, classical macroeconomics and 344
‘real bills’, trade bills issued against transactions of real goods 124
‘Real Business Cycles’ (1983), Long and Plosser 342
real goods, intrinsic value 20
real macroeconomic disequilibrium, oversavings and over-capitalization 239
real wages, subsistence levels 69
‘real-bills’ doctrine (renamed ‘doctrine of reflux’) 126
realization crisis, monetary cycle 160
Reformation, the, made each individual a priest of himself 29
‘regulation’ theory 503
‘relativist’ 6, 8
relevance of a theory 389-90
Renaissance, the 24, 29, 134 rent,
differential returns and 46
intensive explained in terms of productivity of labour 178
source of income, productive activity and 50-1 repeated games or supergames 430-1
Report of the Select Committee on the High Price of Gold Bullion (1810) 122 ‘reproduction cost’ 112 reproduction equilibrium, state that guarantees reproduction of economy 154 reserve-of-value function, not the only accomplishment of liquidity 395
Restriction Act (1797) 121-7
Thornton thought it necessary though temporary 128
Rethinking Marxism journal 509
Review of Economic Studies (1945-6) 282 Review of Economic Studies (1958) 331 Review of Economics and Statistics (1935) 314 revolutions (1848), defeat and violent repression 111
Ricardian branch of Smithian economics, developed into Marxist economics 114
Ricardian revolution 5
Ricardian socialists 2, 101, 140
demonstrate existence of exploitation and 147
role of competition in lowering wages 141 Ricardian system, Clark described it as ‘apotheosis of egoism’ 210 ‘Ricardian vice’ 352
Ricardianism, blossomed as socialist economic theory 101
Ricardians 101
rights of citizenship, rights of ownership 410 rigidity of real wages, persistence in unemployment 370
Robinson Crusoe metaphor, consumer’s rational behaviour and 108 ‘Production Function and the Theory of Capital (1953-4) 440
Roman Empire, slave economy 19 rules of economic and civil morality, based on sympathy 81
rural-urban migration, push type (caused by enclosures) 36
Russia 196, 311
serfdom abolished (1861) 112
Russian economists, linear algebra 308-9 Russian-Turkish War (1768-74) 54
‘safety level’ of games 429
Salamanca School 38, 42-3
sale price, fixed by adding gross mark-up giving ‘honourable profit’ 26
Santa Fe school 492
Sard’s theorem 387 satisficing behaviour 419-20 savings and investment models 240
Say’s Law 98, 236, 239
classical economists applied to reproducible goods 97
impossibility of gluts 9, 49, 87
Keynes and 251
loi des debouches (law of markets) 86-7 rules in a reproductive equilibrium 155 Sismondi thinks does not work because
unequal distribution of income 138 validity of needed to be questioned by Malthus 96-7, 138
Scholastic theories, moralistic tone of 22 scholasticism, economics never treated as subject in itself 30
scholastics, believed just price must guarantee commutative justice 20
science, not ‘value free’ as realist epistemologies claim 511
science of human happiness 84 scientific esearch, responsibilities that come under ethics and politics 514
Scientific Revolution, expansion of European universities 29
scope of investigation, definition 10 Second International 172, 296, 313 Second World War 325, 404, 437, 448 secularization process, natural-law philosophy and 31 securitazation of the public debt 23 self-ownership axiom 504 Seven Years War (1756-63) 54
Sherman Act (1890) (American anti-trust law)
302
simple, relate to stationary economy 154 simple reproduction schemes’ 154
single tax, only productive factor land 58, 62 single-agreed-price bargaining 185 ‘Sisyphus entrepreneur’ 185
‘small-menu costs’ approach to prices 367 Smithian orthodoxy,
Bentham and utilitarianism 83-5
era of optimism 82-3
Smithian economists and Say 85-7
social capital 59
social class 172, 182
social conflict, dominant classes and 163 social consequences of tripling of prices in Europe 28
Social Darwinism 203
‘social economy’ 139 social order 498-9 ‘social prices’ 150 socialism, dream-worlds in first half of nineteenth century 137-8
Socialist economic theories,
Godwin and Owen 139-40
Ricardian socialists and related theorists 140-2
Sismondi, Proudhon and Rodbertus 138-9 socialist tradition, value and distribution 10 society, severe judge of scientific work not impartial 9
‘Solow residue’ 435
Solow-Swan growth-and-distribution model 3, 353-4, 356
sources of contemporary institutionalist and evolutionary theory,
Georgescu-Roegen 469-73
Goodwin 473-5
Polanyi 466-9 south-east Asia, slump (1990s) 458 Soviet debates (1920s), crisis of capitalism and problem of socialist accumulation 314 Spain 28, 196
influx of gold from America, research of value of money and 43
Spanish bullionists, worked at treasury of sovereign 33
Spanish mercantilists, increase in prices and increase in amount of gold 38
Spencerian ideology 202 ‘spontaneous order’ 496-9 'Sraffian Marxists, criticism of theory of labour value 509
Sraffian theoretical approach 354, 503 stagflation, seemed to prove monetarists right (1970s) 339
State,
economic conflict where coalitions pursue interests 80
had to discourage ‘charity’ 65
issue of anti-combination laws 80
justification of intervention in production and distribution of income 265
role in full employment 64
should encourage exports and discourage imports 34
State capitalism thesis, minority opinion until (1960s) 450
‘sterile class’ 63
stock exchange and commenda 23
Stockholm School 236-7
Studies in the Theory of Money and Capital (1939) 237
subjective rationality, individual endowed with perfect knowledge and 463
subjective theory of value 43, 45 subsistence wages 65, 69, 80 ‘substance of value’ 151 substantive rationality, replaced by algorithmic rationality 431 ‘substitution’ 439-40
Suez Canal 112
Sugden and Loomes, regret theory 491 ‘sum-ranking’ 396
sumptuary laws, discouraged private initiative 48
supply curve, assumed to be almost horizontal 39
surplus 46, 172
surplus or deficit on balance of trade, makes rate of exchange vary 34
‘surplus value’ 146-7
Sweden 111, 196
Swedish (or Stockholm) School 221 system of equations, may have no solution or many 187
tacca (tag), set out cost of production
26-7
takeovers, discipline managers 418-19 tatonnement process 184, 208, 238, 297, 347, 381, 385, 391
capable of generating small oscillations 474
technical progress, machines substituted for labour 156
temporary equilibrium changes each time agents check expectations and 394-5
terms of trade 34
textiles sector, wide loom introduced 23 theory of labour value 465 theorem of equality of the marginal utilities 107-8
‘theorem of product exhaustion’ 193 theoretical socialist, identified with Marxism from (1870) 171
theoretical system 10-14 theories, impregnated with values 511-12 theories of economic harmony, economists and 112
Theories of economy harmony and Mill’s synthesis,
‘Age of Capital’ and theories of economic harmony 111-13
capital and the wages fund 118-21
Mill, J. S.
113-15wages and wages fund 115-18
theories of imputation and opportunity cost 192
theories of nominal rigidities, unemployment and under-utilizationof resources as consequence of co-ordination failure 368
theory, of the circular flow 51
of differential rent 93
of diminishing ‘final’ utility 60
of distribution 75, 86, 171
of distribution of income, special
case of theory of
value 167
of efficiency wages, three principal ideas 369
of the entrepreneur 220
of exploitation, independent of labour theory of value 452
of falling rate of profit 120,
157-8
growth 69, 74
growth and volume of international trade 64
implicit contracts 368
income distribution 69, 171 increasing risk 370
individualistic competitive equilibrium
74, 76
marginal utility 172, 286 money supply 48 monopolistic competition 273 profit 74, 98
rational consumer behaviour 224
social choice 404-6
‘staggered’ labour contracts 366 wage differentials 74
theory of general economic equilibrium,
English reception of Walrasian approach 284-6
first existence theorems and Von Neumann’s model 280-4 general economic equilibrium in Hicks 287-9
the IS-LM model 289-91
value and demand in Hicks 286-7
theory of labour commanded, Smith’s theory of growth and 72
theory of labour value, Marx analysed exploitation using 148
theory of market forms,
Chamberlin’theory of monopolistic competition 273-5
first signs of dissent 270-1
Robinson’s theory of imperfect
competition 275-8
Sraffa’s criticism of Marshallian theoretical system 271-3 theory of prices,
measurement and comparison of utility superfluous for 293
no need for cardinal measurement of utility 225
theory of production as circular process, activity analysis and non-substitution theorem 437-40
debate on theory of capital 440-4 production of commodities by means of commodities 444-6
theory of profit 74, 98
theory of structural change, cyclical and long cycles 502
theory of surplus 74 foundation for theory of capitalist exploitation 171
macroeconomic component in Smith 76, 102
theory of underconsumption, unequal
distribution of income and 138 theory of utility value 59-60 theory of demand and 199 theory of value 10, 62
costs of production and 169
Florentine wholesale trading and
tagging 26
theory of profit and 71
theory of wages, theory of income
distribution and 171
theory of wages-fund, developed by followers of Ricardo 115, 171
thesis of trade-off 410
Thomism, man emancipated from at
Renaissance 29, 31 threshold of the millennium,
globalization 456-61 thrift, paradox or dilemma of 239 ‘Tobin tax’, 2 per cent gabell on transactions 25
town civilization 22
towns, living conditions worse than in countryside 36
trade cycle theories 238-9 trade expansion, formation of commercial and industrial centres 28
trade union movements 112, 196 trade union protests 324 trade unions 156-7, 340
trading companies, tried to obtain State help to ensure monopoly positions 42 tradition economic theory, ignores anything not objectively observable 513
‘traditional economic agents’, stationary equilibrium and 263
traditional quantity theory 45 traditions, complicate matters in
economics 10
training costs of a labour skill, quantity of labour employed to produce working ability 76
Treasury view 247-8, 336 trial-and-error procedure 296-7 Tugan-Baranovskij’s cycle model 314 Tugan-Baranovskij’s numerical
solution 309
‘turnpike theorem’, direct application of von Neumann’s model 283
two-person zero-sum games, general 296 theory and 428-9
two-sector economy, reproduction conditions and 151, 154
understanding, distinguished from knowledge 189
unemployment 327
after World War One (1920s and 1930s) 246-7
can only be temporary and frictional 335 causes are uncertainty, risk aversion and information asymmetries 370 clear waste of resources 409
efficiency wages and 369 groups who tend to remain
unemployed 370
‘industrial reserve army’ 156 machinery could create 64
Pareto efficiency and 369
public policies necesssary to cope with problem 486
unemployment rate, normal or natural 9
United States 111, 172, 324
‘agrarian socialism’ 179
Hicks’s Value and Capital in 287 post-Keynesians 350 slavery abolished (1862) 112
Social Security Act 307
surpluses on balance of payments 245
University of Cambridge, post-Keynesians and 351
University of Chicago,
faculty of law and economics 476
Hayek at (1950-62) 498
Urkapital (primary capital) 310
usury, damnum emergens doctrine and 21 utilitarian approach 166
utilitarian egoism 78
utilitarian ethics, consequentialism 84 utilitarian reductionism, man as
egostical atom with Olympian rationality 512
Utilitarian Society, Westminister Review
and 114
utilitarianism 83, 286, 396, 405, 407 utility,
called on to represent choices 295 desire to maximize 84
in regard to quantity available 42 ‘satisfaction of needs’ 293 and scarcity, depend on needs of individuals 60
Utopia, two faces of 134 5
Utopia-of-freedom model 135 Utopia-of-Order 134, 140
value,
created by labour 150
depends on the ‘fatigue’(faticd) in producing goods 60-1
discussions on 97-100
Petty and 45
quantity of labour it is able to
‘command’ 70
Sraffa’s book of (1960) 451
value of goods, forces of demand and costs of production 86
value is labour, surplus value is surplus
labour 149
‘value of labour power’ 146, 156
value of things, desires of men and 42 values, depend on the labour embodies in the goods and on time required to bring them to market 99 very complex systems, sensitive to mild disorder of initial conditions 493
Vienna Chamber of Commerce 217
Vienna Circle 280, 286, 292 Vietnam War, weakened the dollar 324 Volta, condensor electroscope (1775) in Italy 55
Voltaire, people possess nothing, the Jesuits everything 135
voting theory 405 vulgar economists 168, 445
wage differentials, must reflect differences in hardship 76
wage-fund theorists 117
wages,
equal to marginal productivity of labour 369
paid before product sold 69
Wagesfundand 115-19
wages and profits, determined by forces of supply and demand in ‘factor’ markets 71
wages-employment-production, rationality of workers’ behaviour 343
Wall Street Crash (1929) 233, 245 Walrasian competitive equilibrium, set of prices and 184
Walrasian equilibrium model 344
not able to do justice to Keynes 346 Walrasian models, agents price-takers in equilibrium and disequilibrium 347-8
‘Walras’s Law’ 187, 347, 386 Watt’s steam-engine (1765) 54 ‘wealth effect’, two types of 326
wealthy people, lose interest in economic activity 78
welfare economics,
first fundamental theorem 397
partially autonomous branch of research 396
second fundamental theorem 397-400 utilitarian foundations 397
‘welfarism’ 396
Westphalia peace, affirmation of modern nation states after 28
Wicksell effect 219, 440, 443, 501
Wicksell-Lindahl-Musgrave-Samuelson line, theory of public goods and 222
‘widow’s cruse’ theorem 259, 354, 489 workers,
initiative over wages as in insider-outsider models 369-70
just price for good they have sold 146 more risk-averse than entrepreneurs 368 possess only their labour 69
Workers’ International,
London (1864) 172
Marxist ideology and 313
World Bank 323
surveys and individuals below poverty line 458-9
world and international income, distinction between 459
Years of High Theory, The 3
young Cambridge economists, criticism of Keynes 251
young German Historical School 179, 190 ‘Young Historical School’ 2, 110