uedes HISTORY OF THE ECONOMIC

THOUTHT

DYNAMIC

AUTHARCY SOCIETY
ORGANIZATIONS

STATIC

18th century liberalism

- ENLIGHTENMENT
- NATURAL LAWS
MARKETS, AUTO-ORGANITATION

‘’METHODELOGICAL
INDIVIDUALISM’'
1. INFLACTION
CAN ECONOMICS BE A SCIENCE?

Oikos House nomos

Polis City logos law

Positive Approach LIBERALISM/ Natural law

Normative Approach Collective logic / Morals

METHODOLOGY

Economic methodology is the study of methods, especially the scientific method, in

relation to economics, including principles underlying economic reasoning.[1] In
contemporary English, 'methodology' may reference theoretical or systematic aspects
of a method (or several methods). Philosophy and economics also takes up
methodology at the intersection of the two subjects.

Hermeneutics- historical

Deduction ( natural sciences)

Induction ( science should be based in observation ,

individual observation - >regularity->general law )

GENERAL LAW ( it doesn’t matter where it comes from but it has to be testable , then it
can be confirm ( provisionally ( nothing is absolutely true ).

Scientific observation -> coherence basic generally scientific truths

Nonscientific observation -> principle of induction

CAN ECONOMICS BE A SCIENCE?

Q TECHNOLOGY

Q= f(p)

F’<0p1

Economics of the Middle Ages

Biggest issue -> inflation

Monarchy vs the rest of the population, the prince needs money for power and wars,
taxes? System of taxes, inflation comes in when there is a structural weakness on the
balance political vs taxes.

Inflation a form of indirect taxation, transfer of wealth from the general population to
the mandatory institution.

Quantity theory of money.

Outputs* Price = M * V (nº times money changes hands ) ( velocity)

P= M/Outputs

Example of medieval economy:

Prince POP M p REAL WEALTH

60c/60tg 60c/60tg 120 1 120
+120 +120 240 2
180/90tg 60/30tg

Thinkers -> school of Salamanca

Jean Bodin (1530-1596)

1) Influx of gold / silver from LA
2) INDIRECT taxation clue to ……………. Budget deficit of rulers
3) Bad harvest
4) Monopolies

Nicolas Oresme (1325-1382)

‘’ bad money drives out good money ‘’

Tomas de Aquino (1225-1274)

Summa theological :

1) Aristotle ( ‘’ the philosoplus’’)

2) Christian thonghst ( the Bible )
3) Economic reality

A) Private property
- Avoids free riding.
- Belts management
- Peace and social stability.
 B) Just price -> p= AC; p= Mc
‘laesio enormis’. ‘ comminates venditur’

C) Interests

- Forbidden // Aristotle
- But compensation for risk
- Profit sharing
- I = risk + time + Inflation +growth

Physio-crats -> liberals

Competition French farmers vs English farmers

1768 ( crisis)

ECONOMIC TABLE

Farmers / Agriculture Landowners Strike class

‘Productive class’ Aristocrats Industry crafts, commerce
5 units of grain 2 units of rent 2 units of rent
2 u of self-consumption 1 unit consumption 2 units of auto
2 units of rent to the 1 unit for luxury goods consumption
owners
1 unit for

1. Envioremently economics ( limit factor)

2. important of rent and its distribution for the establish/ constitution of the
society
3. Annual FLOW
4. Economic classes
5. Natural laws

ADAM SMITH(1723-1790)
How people behave? Unconscious behavior

The theory of Moral Sentiments

1759-> 1776 WN

‘Adam Smith problem’ It’s a false problem not a real problem, its society the origin of
economic individualism.

Economics as an autonomous endeavor of research.

Individual wealth maximization motivated by unconscious forces formatted by social

interaction ( sympathy Medi.)

Economic subject is the individual.

2 dimensions of the book

Imparthial spectator – general

Invisible hand

Sympathy economic behaivour

Sympathy mecanism