爆料王

PROGRAMME AND READINGS

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Lectures 1鈥�2 (week 1: 24-28 February) 鈥� Matthew Smith

The Formation of Classical Economics to 1776

a) political economy as a distinct intellectual discipline & modern project

b) origins in the seventeenth century

c) Cantillon, Quesnay, Turgot

d) the purpose of political economy

Reading:

There is no required reading for this topic. But if you are interested then recommend:

T. Aspromourgos (1996) 鈥極n the origins of classical economics: distribution and value from William Petty to Adam Smith鈥�, London: Routledge [ebook].

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The short Raphael biography listed under week 2 should be read over these first two weeks (which will amount to only about 50 pages per week). Since this is quite light reading, students are advised to begin reading, in these first two weeks, also the approximately 120 pages of required WN reading for week 3. Skimming pp. 37鈥�71 (WN, book I, chs. IV鈥�VI) would be a sensible additional undertaking in these first two weeks of the course.

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Lectures 3鈥�4 (week 2: 2-6 March) 鈥� Matthew Smith

Adam Smith: Life & Thought

a) the life of Adam Smith (1723鈥�1790)

b) the structure of Smith鈥檚 political economy

c) Smith鈥檚 economics & his wider thought

d) the structure of the Wealth of Nations

Reading:

D.D. Raphael (1985) Adam Smith (Past Masters Series) (Oxford: Oxford University

Press); repr. in D.D. Raphael et al. (1997) Three Great Economists: Smith, Malthus,

Keynes (Oxford: Oxford University Press): 1鈥�102. required reading

I.S. Ross (1995) The Life of Adam Smith, Oxford: Clarendon.

A.S. Skinner (1987) 鈥楽mith, Adam (1723鈥�1790)鈥�, in J. Eatwell, M. Milgate & P. Newman (eds.)

The New Palgrave: a dictionary of economics, London: Macmillan: vol. 4: 357鈥�75.

A.S. Skinner (1996) A System of Social Science: papers relating to Adam Smith, 2nd ed., Oxford: Clarendon.

D. Winch (2004) 鈥楽mith, Adam (bap. 1723, d. 1790)鈥�, in H.C.G. Matthew and B. Harrison

(eds.) Oxford Dictionary of National Biography, Oxford: Oxford University Press [available also in an online edition, via Fisher Library].

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No classes in Week 3 (9-13 March) 鈥� Matthew Smith Absent

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Seminar 1 (week 4: 16-20 March) 鈥� Matthew Smith

WN: Prices & Income Distribution

KEY THEMES: natural price versus market prices and their respective determinants; the role of supply and demand; the gravitation of market prices towards natural price; the theory of natural wage rates; the theory of profit rates (if there is one)

Reading:

PRIMARY READING 鈥� WN: book I, chs. IV鈥揦, 37鈥�159. [This is all of book I, except for the first 3 chapters on 鈥榙ivision of labour鈥� (included under seminar 2) and the final long ch. XI on rent (a subject that we put aside). It is recommended that all students in any case read pp. 1鈥�12 (the 鈥�CONTENTS鈥� and 鈥�INTRODUCTION AND PLAN OF THE WORK鈥�) for this week rather than next week. The key chapters with regard to Smith鈥檚 theory of prices, wages and profits are chs. VII (on natural and market prices) and VIII鈥� IX (on wages and profits), pp. 72鈥�115. Skim the rest, but paying more particular attention to ch. X (pp. 116鈥�59), on wage and profit relativities.]

T. Aspromourgos (2009) The Science of Wealth: Adam Smith and the Framing of Political Economy, London: Routledge [ebook] 鈥攃h. 3 (鈥楥ompetition, Prices and Distribution鈥�): 65鈥�134. Section 3.5 (pp. 101鈥�131) 鈥� concerning the 鈥榩rehistory鈥� of Smith鈥檚 price theory 鈥� may be ignored.

P. Garegnani (1983) 鈥楾he Classical Theory of Wages and the Role of Demand Schedules in the Determination of Relative Prices鈥�, American Economic Review, 73 (Papers and Proceedings): 309鈥�13.

S. Hollander (1973) The Economics of Adam Smith, Toronto: University of Toronto Press鈥攃hs. 4鈥�5: 114鈥�87.

R. O鈥橠onnell (1990) Adam Smith鈥檚 Theory of Value and Distribution: a reappraisal, New York: St. Martin鈥檚鈥攃hs. 4, 6: 53鈥�61, 82鈥�117.

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Seminar 2 (week 5: 23-27 March) 鈥� Matthew Smith

WN: Capital Accumulation & Growth

KEY THEMES: division of labour as the source of labour productivity growth; capital and the distinction between productive and unproductive labour; the role of saving in relation to growth; the distinction between saving and investment (if there is one); growth鈥攁 demand-led or supply-led process?

Reading:

PRIMARY READING 鈥� WN: book I, chs. I鈥揑II & book II, chs. I鈥揑V鈥攑p. 1鈥�36, 276鈥�359. [This includes all of book II, except for the last chapter on value added, labour productivity and capital intensities in different production sectors. The fourth chapter of book II is not so vital and can be skimmed.]

T. Aspromourgos (2009) The Science of Wealth: Adam Smith and the Framing of Political Economy, London: Routledge [ebook]鈥攃h. 4 (鈥楶roduction and Capital Accumulation鈥�): 135鈥�202. Secs. 4.1.2, 4.2.3鈥�4.2.4 and 4.3.5鈥�4.3.8 (pp. 140鈥�46, 155鈥�60, 178鈥�91) 鈥� concerning the 鈥榩rehistory鈥� of Smith鈥檚 economics and some aspects of his economics less significant for the theory of growth 鈥� may be ignored. The lecturer can provide a pdf of page-proofs of the chapter.

W. Eltis (1984) The Classical Theory of Economic Growth, London: Macmillan鈥攃h. 3: 68鈥�105.

S. Hollander (1973) The Economics of Adam Smith, Toronto: University of Toronto Press鈥攃hs. 6鈥�7: 188鈥�241.

A.A. Young (1928) 鈥業ncreasing Returns and Economic Progress鈥�, Economic Journal, 38 (Dec.): 527鈥�42.

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Seminar 3 (week 6: 30 March-3 April) 鈥� Matthew Smith

WN: Economic Policy & the State

KEY THEMES: general opulence as the normative purpose of political economy (and of economic purpose of political society); the system of natural liberty; the role of policy and the legitimate economic functions of government; the relation between theory (and principles) and policy (practice); does Smith provide a justification for the distribution of material resources in a liberal capitalist society?

Reading:

PRIMARY READING 鈥� WN: book IV, ch. I; book V, parts of chs. I, II (there are only 3 chs in book V)鈥攑p. 428鈥�51, 689鈥�723 (the legitimate functions of government in general), 781鈥�8 (concerning education and division of labour), 814鈥�16 (conclusion of ch. I), 817 (intro. to ch. II), 825鈥�8 (general statement on taxation), 847鈥�52 (taxes on rents & profits), 864鈥�7 (taxes on wages), 869鈥�76 (consumption taxes). [The third and final chapter of book V concerns public debt.]

Because Smith鈥檚 policy analysis and policy commentary in WN is both diffuse and covers a large quantity of the text, it is particularly important for this topic, to read the comprehensive overview in the first reading below.

T. Aspromourgos (2009) The Science of Wealth: Adam Smith and the Framing of Political Economy, London: Routledge [ebook]鈥攃h. 5 (鈥極pulence and Policy鈥�): 203鈥�54. Secs. 5.1.2 and 5.2.4鈥�5.2.6 (pp. 212鈥�14, 228鈥�38) 鈥� concerning the 鈥榩rehistory鈥� of Smith鈥檚 economics 鈥� may be ignored. The lecturer can provide a pdf of page-proofs of the chapter.

J.R. Lindgren (1973) The Social Philosophy of Adam Smith, The Hague: Martinus Nijhoff: 110鈥�32 (ch. 6鈥斺�楥ommercial Policy鈥�).

W.J. Samuels and S.G. Medema (2005) 鈥楩reeing Smith from the 鈥淔ree Market鈥�: on the misperception of Adam Smith on the economic role of government鈥�, History of Political Economy, 37 (2): 219鈥�26.

A.S. Skinner (1996) A System of Social Science: papers relating to Adam Smith, 2nd ed., Oxford: Clarendon: 183鈥�208 (ch. 8鈥斺�楾he Role of the State鈥�).

J. Viner (1927) 鈥楢dam Smith and Laissez Faire鈥�, Journal of Political Economy, 35 (2): 198鈥�232; also in J.M. Clark et al. (1928) Adam Smith, 1776鈥�1926: lectures to commemorate the sesquicentennial of the publication of 鈥楾he Wealth of Nations鈥�, Chicago: University of Chicago Press: 116鈥�55.

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Lectures 5鈥�6 (week 7: 6 -10 April) 鈥� Matthew Smith

Classical Economics after Smith and Modern Economics

a) Smith & the classical tradition

b) Smith to Ricardo to Mill and Marx

c) the decline of classical economics in the nineteenth century

d) Sraffa and the revival of classical economics in mid-twentieth century

Reading:

H.D. Kurz (2003) 鈥楾he Surplus Interpretation of the Classical Economists鈥�, in W.J.

Samuels, J.E. Biddle and J.B. Davis (eds.) A Companion to the History of Economic

Thought, Oxford: Blackwell: 167鈥�83. required reading

H.D. Kurz & N. Salvadori (2003) 鈥樷�淐lassical鈥� vs. 鈥淣eoclassical鈥� Theories of Value and Distribution and the Long-Period Method鈥�, in F. Petri and F. Hahn (eds.) General

Equilibrium: problems and prospects, London: Routledge: 216鈥�45. required reading

T. Aspromourgos (2009) The Science of Wealth: Adam Smith and the Framing of Political Economy, London: Routledge [ebook]鈥斺�楨pilogue鈥�: 255鈥�71. The lecturer can provide a pdf of page-proofs of the chapter. required reading

V. Walsh (2000) 鈥楽mith After Sen鈥�, Review of Political Economy, 12 (1): 5鈥�25.

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THE WEEK 13-17 April IS

THE AVCC 鈥�COMMON WEEK鈥欌赌�NO CLASSES.

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Lectures 7鈥�8 (week 8: 20-24 April) 鈥� Graham White

The Rise of Marginalism and Dissenting Undercurrents to 1936

a) the rise of the marginalist tradition

b) the structure of the marginalist theory

c) Alfred Marshall & the Cambridge School

d) dissenting undercurrents and under-consumption theories听听

Reading:

M. Milgate, (1982) Capital and Employment (London: Academic Press), Ch. V: 59-76. required reading

A. Campus, (1987) 鈥楳arginalist economics鈥� in J. Eatwell, M. Milgate & P. Newman (eds) The New Palgrave: a dictionary of economics (London: Macmillan), Vol.3: 320-22. required reading

P. Garegnani, (1983), 鈥楴otes on Consumption, Investment and Effective Demand鈥� in Eatwell J. and Milgate M. Keynes鈥檚 Economics and the Theory of Value and Distribution (London: Duckworth): 21 鈥� 47.

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Lectures 9鈥�10 (week 9: 27 April 鈥� 1 May) 鈥� Graham White

John Maynard Keynes: Life & Thought

a) life & activities to 1930

b) Keynes鈥檚 intellectual development with particular reference to the making of

the General Theory (1930鈥�1936)

c) Keynes after the General Theory

d) the structure of the General Theory

Reading:

M. Milgate (1987) 鈥楰别测苍别蝉鈥檚 General Theory鈥�; J. Eatwell (1987) 鈥楰eynesianism鈥�; & L. Tarshis (1987) 鈥楰eynesian Revolution鈥� 鈥� all in J. Eatwell, M. Milgate & P. Newman (eds) The New Palgrave: a dictionary of economics (London: Macmillan), vol.3: 42鈥�50.

A. Cairncross (2004) 鈥楰eynes, John Maynard, Baron Keynes (1883鈥�1946)鈥�, in H.C.G. Matthew and B. Harrison (eds.) Oxford Dictionary of National Biography, Oxford: Oxford University Press [available also online, Fisher Library (23 pp.)].

R. Skidelsky (1996) Keynes (Past Masters Series) (Oxford: Oxford University Press); repr. in D.D. Raphael et al. (1997) Three Great Economists: Smith, Malthus, Keynes (Oxford: Oxford University Press): 219鈥�367. [This is a summary version of his three-volume biography of Keynes (1983鈥�2000). There is also a further condensed version of the three-volume work (but nevertheless, more than 1,000 pages): R. Skidelsky (2003) John Maynard Keynes, 1883鈥�1946: economist, philosopher, statesman (London: Macmillan)].

P. Clarke (2009) Keynes: the rise, fall, and return of the 20th century鈥檚 most influential economist, New York: Bloomsbury. [This is the best available short account of Keynes鈥檚 life and thought as a whole.]

D.E. Moggridge (1992) Maynard Keynes: an economist鈥檚 biography, London: Routledge.

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Seminar 4 (week 10: 4-8 May) 鈥� Graham White

GT: the Principle of Effective Demand & the Multiplier

KEY THEMES: the classical postulates & involuntary unemployment (ch. 2); real wages & labour demand (chs. 2鈥�3); the aggregate-supply/aggregate-demand apparatus (ch. 3); determinants of consumption (chs. 8鈥�9); relation between consumption & income (chs. 8鈥�9); relation between saving (consumption) and investment (ch. 10).

Reading:

PRIMARY READING 鈥� GT: chs. 1鈥�3, 8鈥�10 (pp. v鈥搗iii, 3鈥�34, 89鈥�131).

W. Darity, Jr. & W. Young (1997) 鈥極n Rewriting Chapter 2 of The General Theory鈥�, in G.C. Harcourt & P.A. Riach (eds.) (1997) A 鈥楽econd Edition鈥� of The General Theory, 2 vols. (London: Routledge), vol. 1: 20鈥�27 (hereafter 鈥楪T2鈥�).

L.L. Pasinetti (1997) 鈥楾he Principle of Effective Demand鈥�, in GT2: 93鈥�104.

S. Parrinello (1980) 鈥楾he Price Level Implicit in Keynes鈥� Effective Demand鈥�, Journal of Post Keynesian Economics 3 (1): 63鈥�78 [with a comment by S. Weintraub (1980) 鈥楥omment on Aggregate Demand and Price Diagrammatics鈥�, Journal of Post Keynesian Economics 3 (1): 79鈥�87].

J.S.L. McCombie (1985鈥�86) 鈥榃hy Cutting Real Wages Will Not Necessarily Reduce Unemployment 鈥� Keynes and the 鈥淧ostulates of the Classical Economics鈥濃��, Journal of Post Keynesian Economics 8 (2): 233鈥�48.

J. Thomas (1997) 鈥楾he Propensity to Consume and the Multiplier鈥�, in GT2: 147鈥�61.

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Note: The intervening chapters 4 to 7 (i.e. Book II) of GT, which are not covered by this seminar, deal with definitions and assumptions underlying the discussion in subsequent chapters; most importantly, the definitions of income and investment; the use of the money wage as the numeraire for the analysis and preliminary comments about the state of expectations as a variable in the subsequent determination of the level of employment.

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Seminar 5 (week 11: 11-15 May) 鈥� Graham White

GT: Investment & the Theory of Interest

KEY THEMES: the MEC & investment demand (ch. 11); long term expectation, equity markets & investment demand (ch. 12); liquidity preference (chs. 13, 15); the rate of interest, saving, investment and Keynes鈥檚 critique of the 鈥榗lassical鈥� theory (ch.14).

Reading:

PRIMARY READING 鈥� GT: chs. 11鈥�15 (pp. 135鈥�209).

L.L. Pasinetti (1997) 鈥楾he Marginal Efficiency of Investment鈥�, in GT2: 198鈥�218.

C. Panico (1988) Interest and Profit in the Theories of Value and Distribution (London: Macmillan), ch.4: 102鈥�56 (鈥楰eynes on the Interest Rate鈥�).

M.S. Lawlor (1997) 鈥楾he Classical Theory of the Rate of Interest鈥�, in GT2: 343鈥�67.

C. Panico op. cit., Chapter 5: 157鈥�80 (鈥楰eynes on the Relation Between Interest and Profit鈥�).

F. Petri (2004) General Equilibrium, Capital and Macroeconomics: A Key to Recent Controversies in Equilibrium Theory (Cheltenham UK: Elgar), ch. 7: 256鈥�68 (just part of the chapter, 鈥楥apital Theory and Macroeconomics. I: the theory of aggregate investment鈥�).

Milgate M. (1982) Capital and Employment (London: Academic Press), ch. 7: 111鈥�23.

Note: While controversial over the years, the omitted chapters chapters 16 and 17arguably do not add to the substance of Keynes鈥檚 argument, and, some would say, act to cloud the essence of the argument advanced in Chapters 13, 14 and 15. Chapter 16 deals (not for the first time in the GT) with the direction of causation between saving and investment, but partly in terms of what many have seen as a somewhat obscure discussion of capital theory.

Chapter 17, drawing in part on the influence of discussions with Piero Sraffa, is an attempt to cement Keynes鈥檚 alternative view of the direction of causation between the rate of interest and the rate of profit. However, the force of both of both Chapters 16 and 17 turns very largely on the validity of the negative side of Keynes鈥檚 critique which is the basis of chapter 14 and are arguably either unnecessary or defensive and suggestive of problems with the earlier chapters. Chapter 18 is essentially a summarising of the argument in the preceding 16 chapters, though it is worth noting Keynes鈥檚 comments towards the end of this chapter regarding stability in the money wage.

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Seminar 6 (week 12: 18-22 May)

GT: Economic Policy & the State

KEY THEMES: money-wage flexibility & employment (ch. 19); money-wage adjustment versus monetary policy (ch. 19); effectiveness of monetary policy (passim); 鈥榗heap money鈥� (ch. 24); public investment (ch. 24); Keynes & socialism (ch. 24); the GT & Keynes鈥檚 social philosophy.

Reading:

PRIMARY READING 鈥� GT: chs. 19 [not including the Appendix], 24 (pp. 257鈥�71, 372鈥�84), with 94鈥�95, 119鈥�20, 128鈥�31, 163鈥�64, 196鈥�99, 202鈥�08, 217鈥�21, 315鈥�20. (The latter pages bring together the more significant discussions of policy prior to chapter 24.) ALSO:

J.M. Keynes (1930) 鈥楨conomic Possibilities for Our Grandchildren鈥�, repr. in Essays in Persuasion, (London: Macmillan, 1931), reproduced as vol. 9 of The Collected Writings of John Maynard Keynes, (London: Macmillan, 1972): 321鈥�32.

J.M. Keynes (1944) Letter to F.A. von Hayek (28 June), in D. Moggridge (ed.) (1980) John Maynard Keynes. Activities 1940鈥�1946. Shaping the Post-War World: employment and commodities (The Collected Writings of John Maynard Keynes, vol. 27): 385鈥�88.

T. Aspromourgos (1997) 鈥楰eynes on Wage Flexibility and the Australian Wages System鈥�, Australian Economic Papers 36 (June): 114鈥�26.

R.M. O鈥橠onnell (1991) 鈥楰别测苍别蝉鈥檚 Political Philosophy鈥�, in W.J. Barber (ed.) Perspectives on the History of Economic Thought, volume VI (Aldershot: Elgar): 3鈥�28.

T. Aspromourgos (2012) Keynes鈥檚 General Theory After 76 Years: Chapter 24 and the Character of 鈥淜eynesian Policy鈥�, Economic Record, 88 (Special Issue, June): 149鈥�57

J.A. Kregel (1985) 鈥楤udget Deficits, Stabilisation Policy and Liquidity Preference: Keynes鈥檚 post-war policy proposals鈥�, in F. Vicarelli (ed.) Keynes鈥檚 Relevance Today (London: Macmillan): 28鈥�50.

D. Patinkin (1987) 鈥榬eal balances鈥�, in J. Eatwell, M. Milgate & P. Newman (eds.) The New Palgrave: a dictionary of economics, vol.4: 98鈥�101. [A version of this is also in the 2008 2nd edition, available online in Fisher.]

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Lectures 11鈥�12 (week 13: 25-29 May) 鈥� Graham White

Keynes & Modern Economics

a) Keynes鈥檚 General Theory and the development of macroeconomics to thepresent:

(i) the neoclassical synthesis;

(ii) the search for microfoundations

(iii) 鈥榥ew鈥� Keynesianism

b) Keynes & the reconstruction of classical economics: effective demand and the classical/Sraffian approach to value and distribution

Reading:

P. Garegnani (1988) 鈥楥apital and Effective Demand鈥�, in A. Barr猫re (ed.) The Foundations of Keynesian Economics, (New York: St Martin鈥檚), ch. 10: 197鈥�230.

G. White (2004) 鈥楥apital, Distribution and Macroeconomics: 鈥榗ore鈥� beliefs and theoretical foundations鈥�, Cambridge Journal of Economics, vol. 28 (no. 4).