1. 18th Century
1.1. Adam Smith (1723-1790)
1.1.1. key ideas
1.1.1.1. Division of Labour: Specialization increases effieciency
1.1.1.2. Value Theory: Distinction between "Value of use" and "Value in exchange"
1.1.1.3. invisible Hand: Self-regulation of market
1.1.1.4. Example: Wealth of Nation (1776) introduced the idea that free markets lead to prosperity
1.2. Laissez-Faire Economics (Late 18th)
1.2.1. key ideas
1.2.1.1. Minimal goverment intervention in the economy.
1.2.1.2. Example: The physiocrats in France advocated for Laissez-Faire policies, emphasizing "Laissez-Faire,Laisserz-Passer" (let do,let pass)
2. 19th Century
2.1. Clasiccal Economics (Early to Mid 19th)
2.1.1. key figures
2.1.1.1. - David Ricardo - John Stuart Mill
2.1.2. key ideas
2.1.2.1. Comparative advantage (Ricardo)
2.1.2.2. Say's Law (Supply creates its own demand)
2.1.2.3. Example: Ricardo's Principles of Political Economy (1817) - outline the theory of comparative advantage.
2.2. Marginal Revolution (Mid 19th)
2.2.1. key figures
2.2.1.1. - William Stanley Jevons - Carl Menger - Leon Walras
2.2.2. key ideas
2.2.2.1. Marginal Utility: Value of goods determined by their marginal utility.
2.2.2.2. Example: Menger's Principles of Economics (1871) - conerstone of the marginalist approach.
2.3. Marxist Economics (Mid to Late 19th)
2.3.1. key figures
2.3.1.1. - Karl Marx
2.3.2. key ideas
2.3.2.1. Labour Theory of Value
2.3.2.2. Critique of Capitalism and Class Struggle
2.3.2.3. Example: Das Kapital (1867) – critical analysis of political economy and capitalism.
2.4. Neoclassical Economics (Late 19th)
2.4.1. key figures
2.4.1.1. - Alfred Marshall - Léon Walras
2.4.2. key ideas
2.4.2.1. Supply and Demand
2.4.2.2. General Equilibrium Theory
2.4.2.3. Example: Marshall’s Principles of Economics (1890) – formalized many microeconomic concepts, such as consumer surplus and elasticity.
3. 20th Century
3.1. Keynesian Economics (1930s)
3.1.1. key figures
3.1.1.1. - John Maynard Keynes
3.1.2. key ideas
3.1.2.1. Government intervention to manage demand
3.1.2.2. Fiscal policy to combat recessions.
3.1.2.3. Example: The General Theory of Employment, Interest and Money (1936) – revolutionized macroeconomics and introduced concepts like aggregate demand
3.2. Monetarism (1960s-1970s)
3.2.1. key figures
3.2.1.1. - Milton Friedman
3.2.2. key ideas
3.2.2.1. Control of money supply to manage inflation
3.2.2.2. Critique of Keynesian economics
3.2.2.3. Example: Friedman’s work in the 1960s led to the monetarist school, influencing policies like those under Thatcher and Reagan
3.3. New Classical Economics (1970s)
3.3.1. key figures
3.3.1.1. - Robert Lucas - Edward Prescott
3.3.2. key ideas
3.3.2.1. Rational Expectations
3.3.2.2. Market Clearing
3.3.2.3. Example: Lucas’s work on rational expectations showed that government policy might be ineffective if people anticipate its effects.
3.4. Behavioral Economics (Late 20th)
3.4.1. key figures
3.4.1.1. - Daniel Kahneman - Richard Thaler
3.4.2. key ideas
3.4.2.1. Psychological insights into economic decision-making
3.4.2.2. Bounded Rationality and Prospect Theory
3.4.2.3. Example: Kahneman’s Thinking, Fast and Slow (2011) – explored how cognitive biases affect economic decisions
3.5. Post-Keynesian Economics (Mid to Late 20th)
3.5.1. key figures
3.5.1.1. - Joan Robinson - Paul Davidson
3.5.2. key ideas
3.5.2.1. Focus on uncertainty, historical time, and income distribution
3.5.2.2. Example: Robinson’s critique of neoclassical theory, particularly regarding imperfect competition
4. 21 Century
4.1. Circular Economy (Early 21th)
4.1.1. key ideas
4.1.1.1. Sustainable economic model focused on reducing waste
4.1.1.2. Shift from a linear "take-make-dispose" model to a regenerative system
4.1.1.3. Example: Companies like Patagonia implementing circular practices, like recycling old products into new ones
4.2. Behavioural Economics (Continued Evolution)
4.2.1. key ideas
4.2.1.1. Expansion of the field, influencing public policy and business strategies
4.2.1.2. Example: Richard Thaler’s work on "nudges" and choice architecture, which earned him the Nobel Prize in Economics in 2017
4.3. Development Economics (OnGoing)
4.3.1. key ideas
4.3.1.1. Focus on strategies for economic development in less developed countries
4.3.1.2. Role of foreign aid, investment and policy reforms.
4.3.1.3. Example: The application of the Harrod-Domar model in post-war reconstruction and development planning