Economic History

Learn about historical events that shifted economic ideas.

Kautilya’s Arthashastra in Indian Economy

When considering Indian philosophical legacy, “Arthashastra” takes center stage. In his 1919 article “Politics as a Vocation,” Max Weber designated Arthashastra as a classic work of statecraft (Liebig, 2013). Arthashastra is thought to have been composed in the third century BC by Indian philosopher Kautilya (Chanakya), principal counselor to the Indian monarch Chandragupta. Political philosophy …

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Mercantilism theory of trade

History of Mercantilism theory of trade

Adam Smith is widely regarded as the father of economics.  However, prior to his time, history was filled with many economic thinkers and practices. Among those, mercantilism economic ideas dominated Europe until Adam Smith‘s publication of “Wealth of Nation” in 1776. What is Mercantilism? From the 16th through the 18th centuries, mercantilism was a popular economic philosophy and practice in Europe. This theory arose …

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comparative advantage trade theory

History of comparative advantage trade theory

The theory of comparative advantage is one of the most popular trade theories in the field of international economics. Why is comparative advantage more important for trade? David Ricardo first presented this theory in his book Principles of Political Economy and Taxation in 1817. It gave answers to some weaknesses of Adam Smith’s absolute advantage …

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Keynesian Economics

The History of Keynesian economics

Keynesian economics is mainly a macroeconomic theory that describes overall economic spending and its consequences on production, employment, and inflation. And it was established during the 1930s by the British economist John Maynard Keynes in an attempt to understand the Great Depression. What historical event led to Keynesian economics? In the 1930s sudden collapse in …

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Father of classical economics

The Classical Economics school

Classical economics is the economic school of thinking that emerged in the late 18th and early 19th centuries. Who is the father of classical economics? The Classical school of economics originated in 1776 with the publication of Adam Smith’s (1723-1790) “The Wealth of Nations.” Contemporaries including David Ricardo (1772-1823), Jean Baptise Say (1767-1832), and Robert …

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