Syllabus
Economics and Moral Philosophy: The way to Adam Smith (JB)
Marx and his Influence. Struggle of Socialists with Austrian School, the Economic Calculation Debate. (MP)
Marginal Revolution and the Rise of Mathematics (Foundation of Neoclassical Orthodoxy): Jevons, Walras, Menger, Marshall and Methodenstreit. (MP)
Keynesian Revolution and Followers of Keynes (JB)
Austrian School and Ordoliberalism – Intellectual Roots of Neoliberalism (JB)
Positive Economics and Influence of Popper (MP)
Modern Mathematical Economics, Lucas Critique and Foundation of Rational Expectations (MP)
Monetarism, Rational Expectations and Theories of Business Cycles (JB)
The New-Keynesian Macroeconomics: The pre-2008 consensus. (JB)
After the Great Recession: Behavioral Economics and Changes in Macro (MP and JB)
Why Do Economists Not Reject Models That Have Failed? The Philosophy of Science Perspective (MP and JB)
Economics and Philosophy: Guest Lecture (TS)
Annotation
This course covers the key methodological revolutions within economic theory that shaped the current state of economics as a science. Second, using our historical investigation, we discuss the evolution of the views on economic policy and the role of the state in general. We end up with the changes in economics after the Great Recession.
We analyze the evolution of economics from two perspectives: a) philosophy of economics (“paradox of explanation”) and philosophy of science (legacy of T. Kuhn and I. Lakatos). The class, therefore, combines perspectives from the history of economic thought, philosophy of economics and current policy debates to present history and philosophy of economics as essential knowledge helping to understand current policy decisions and the state of economics as a science. Moreover, the investigation of the historical and methodological foundation of economics enables us to debate questions about the intellectual roots of positions of leading policymakers of the past.
The course is designed as an introductory course; therefore, no in-depth knowledge of economic theory or philosophy is expected. However, the background in economics is, of course, an advantage. Our coverage of historical milestones and economic schools is arbitrary to fit our primary goal, i.e., to follow the gradual development of economics towards science based on mathematical methodology and explain selected policy debates. Therefore, students should not expect that we will cover all schools of thought mentioned in numerous textbooks on the history of economic thought.