In the

history of economic thought History (derived ) is the systematic study and the documentation of the human activity. The time period of event before the History of writing#Inventions of writing, invention of writing systems is considered prehistory. "History" is an umbr ...

, a school of economic thought is a group of

economic An economy is an area of the Production (economics), production, Distribution (economics), distribution and trade, as well as Consumption (economics), consumption of Goods (economics), goods and Service (economics), services. In general, it is ...

thinkers who share or shared a common perspective on the way

economies An economy is an area of the production, distribution and trade, as well as consumption of goods and services. In general, it is defined as a social domain that emphasize the practices, discourses, and material expressions associated with the p ...

work. While

economist An economist is a professional and practitioner in the social sciences, social science discipline of economics. The individual may also study, develop, and apply theories and concepts from economics and write about economic policy. Within this ...

s do not always fit into particular schools, particularly in modern times, classifying economists into

schools of thought A school of thought, or intellectual tradition, is the perspective of a group of people who share common characteristics of opinion or outlook of a philosophy, discipline, belief, social movement, economics, cultural movement, or art movement. H ...

is common. Economic thought may be roughly divided into three phases: premodern (

Greco-Roman The Greco-Roman civilization (; also Greco-Roman culture; spelled Graeco-Roman in the Commonwealth), as understood by modern scholars and writers, includes the geographical regions and countries that culturally—and so historically—were di ...

Indian Indian or Indians may refer to: Peoples South Asia * Indian people, people of Indian nationality, or people who have an Indian ancestor ** Non-resident Indian, a citizen of India who has temporarily emigrated to another country * South Asia ...

Persian Persian may refer to: * People and things from Iran, historically called ''Persia'' in the English language ** Persians, the majority ethnic group in Iran, not to be conflated with the Iranic peoples ** Persian language, an Iranian language of the ...

Islamic Islam (; ar, ۘالِإسلَام, , ) is an Abrahamic monotheistic religion centred primarily around the Quran, a religious text considered by Muslims to be the direct word of God (or '' Allah'') as it was revealed to Muhammad, the mai ...

, and

Imperial Chinese The earliest known written records of the history of China date from as early as 1250 BC, from the Shang dynasty (c. 1600–1046 BC), during the reign of king Wu Ding. Ancient historical texts such as the ''Book of Documents'' (early chapter ...

), early modern (

mercantilist Mercantilism is an economic policy that is designed to maximize the exports and minimize the imports for an economy. It promotes imperialism, colonialism, tariffs and subsidies on traded goods to achieve that goal. The policy aims to reduce a ...

physiocrats Physiocracy (; from the Greek for "government of nature") is an economic theory developed by a group of 18th-century Age of Enlightenment French economists who believed that the wealth of nations derived solely from the value of "land agricultur ...

) and modern (beginning with

Adam Smith Adam Smith (baptized 1723 – 17 July 1790) was a Scottish economist and philosopher who was a pioneer in the thinking of political economy and key figure during the Scottish Enlightenment. Seen by some as "The Father of Economics"——— ...

and

classical economics Classical economics, classical political economy, or Smithian economics is a school of thought in political economy that flourished, primarily in Britain, in the late 18th and early-to-mid 19th century. Its main thinkers are held to be Adam Smith ...

in the late 18th century, and

Karl Marx Karl Heinrich Marx (; 5 May 1818 – 14 March 1883) was a German philosopher, economist, historian, sociologist, political theorist, journalist, critic of political economy, and socialist revolutionary. His best-known titles are the 1848 ...

and Friedrich Engels'

Marxian economics Marxian economics, or the Marxian school of economics, is a Heterodox economics, heterodox school of political economic thought. Its foundations can be traced back to Karl Marx, Karl Marx's Critique of political economy#Marx's critique of politic ...

in the mid 19th century). Systematic economic theory has been developed mainly since the beginning of what is termed the

modern era The term modern period or modern era (sometimes also called modern history or modern times) is the period of history that succeeds the Middle Ages (which ended approximately 1500 AD). This terminology is a historical periodization that is applie ...

. Currently, the great majority of economists follow an approach referred to as

mainstream economics Mainstream economics is the body of knowledge, theories, and models of economics, as taught by universities worldwide, that are generally accepted by economists as a basis for discussion. Also known as orthodox economics, it can be contrasted to h ...

(sometimes called 'orthodox economics'). Economists generally specialize into either macroeconomics, broadly on the general scope of the economy as a whole, and microeconomics, on specific markets or actors. Within the macroeconomic mainstream in the United States, distinctions can be made between

saltwater Saline water (more commonly known as salt water) is water that contains a high concentration of dissolved salts (mainly sodium chloride). On the United States Geological Survey (USGS) salinity scale, saline water is saltier than brackish water, ...

economists and the more

laissez-faire ''Laissez-faire'' ( ; from french: laissez faire , ) is an economic system in which transactions between private groups of people are free from any form of economic interventionism (such as subsidies) deriving from special interest groups. ...

ideas of freshwater economists. However, there is broad agreement on the importance of general equilibrium, the methodology related to models used for certain purposes (e.g. statistical models for forecasting, structural models for counterfactual analysis, etc.), and the importance of partial equilibrium models for analyzing specific factors important to the economy (e.g. banking). Some influential approaches of the past, such as the

historical school of economics The historical school of economics was an approach to academic economics and to public administration that emerged in the 19th century in Germany, and held sway there until well into the 20th century. The professors involved compiled massive econ ...

and

institutional economics Institutional economics focuses on understanding the role of the Sociocultural evolution, evolutionary process and the role of institutions in shaping Economy, economic Human behavior, behavior. Its original focus lay in Thorstein Veblen's instin ...

, have become defunct or have declined in influence, and are now considered heterodox approaches. Other longstanding heterodox schools of economic thought include

Austrian economics The Austrian School is a heterodox school of economic thought that advocates strict adherence to methodological individualism, the concept that social phenomena result exclusively from the motivations and actions of individuals. Austrian school ...

and

. Some more recent developments in economic thought such as

feminist economics Feminist economics is the critical study of economics and economies, with a focus on gender-aware and inclusive economic inquiry and policy analysis. Feminist economic researchers include academics, activists, policy theorists, and practition ...

and ecological economics adapt and critique mainstream approaches with an emphasis on particular issues rather than developing as independent schools.

Contemporary economic thought

Mainstream economics

Mainstream economics is distinguished in general economics from

heterodox In religion, heterodoxy (from Ancient Greek: , "other, another, different" + , "popular belief") means "any opinions or doctrines at variance with an official or orthodox position". Under this definition, heterodoxy is similar to unorthodoxy, w ...

approaches and schools within economics. It begins with the premise that resources are scarce and that it is necessary to choose between competing alternatives. That is, economics deals with

tradeoff A trade-off (or tradeoff) is a situational decision that involves diminishing or losing one quality, quantity, or property of a set or design in return for gains in other aspects. In simple terms, a tradeoff is where one thing increases, and anot ...

s. With scarcity, choosing one alternative implies forgoing another alternative—the

opportunity cost In microeconomic theory, the opportunity cost of a particular activity is the value or benefit given up by engaging in that activity, relative to engaging in an alternative activity. More effective it means if you chose one activity (for example ...

. The opportunity cost expresses an implicit relationship between competing alternatives. Such costs, considered as prices in a market economy, are used for analysis of

economic efficiency In microeconomics, economic efficiency, depending on the context, is usually one of the following two related concepts: * Allocative or Pareto efficiency: any changes made to assist one person would harm another. * Productive efficiency: no addit ...

or for predicting responses to disturbances in a market. In a

planned economy A planned economy is a type of economic system where investment, production and the allocation of capital goods takes place according to economy-wide economic plans and production plans. A planned economy may use centralized, decentralized, part ...

comparable

shadow price A shadow price is the monetary value assigned to an abstract or intangible commodity which is not traded in the marketplace. This often takes the form of an externality. Shadow prices are also known as the recalculation of known market prices in o ...

relations must be satisfied for the efficient use of resources, as first demonstrated by the Italian economist

Enrico Barone Enrico Barone (; 22 December 1859, Naples, Kingdom of the Two Sicilies – 14 May 1924, Rome, Italy) was a soldier, military historian, and an economist. Biography Barone studied the classics and mathematics before becoming an army officer. He ta ...

. Economists believe that incentives and costs play a pervasive role in shaping

decision making In psychology, decision-making (also spelled decision making and decisionmaking) is regarded as the cognitive process resulting in the selection of a belief or a course of action among several possible alternative options. It could be either rati ...

. An immediate example of this is the

consumer theory The theory of consumer choice is the branch of microeconomics that relates preferences to consumption expenditures and to consumer demand curves. It analyzes how consumers maximize the desirability of their consumption as measured by their pref ...

of individual demand, which isolates how prices (as costs) and income affect quantity demanded. Modern mainstream economics has foundations in

neoclassical economics Neoclassical economics is an approach to economics in which the production, consumption and valuation (pricing) of goods and services are observed as driven by the supply and demand model. According to this line of thought, the value of a good ...

, which began to develop in the late 19th century. Mainstream economics also acknowledges the existence of

market failure In neoclassical economics, market failure is a situation in which the allocation of goods and services by a free market is not Pareto efficient, often leading to a net loss of economic value. Market failures can be viewed as scenarios where indiv ...

and insights from

Keynesian economics Keynesian economics ( ; sometimes Keynesianism, named after British economist John Maynard Keynes) are the various macroeconomic theories and models of how aggregate demand (total spending in the economy) strongly influences economic output an ...

, most contemporaneously in the macroeconomic

new neoclassical synthesis The new neoclassical synthesis (NNS), which is now generally referred to as New Keynesian economics, and occasionally as the New Consensus, is the fusion of the major, modern macroeconomic schools of thought – new classical macroeconomics/real b ...

. It uses models of

economic growth Economic growth can be defined as the increase or improvement in the inflation-adjusted market value of the goods and services produced by an economy in a financial year. Statisticians conventionally measure such growth as the percent rate of ...

for analyzing long-run variables affecting

national income A variety of measures of national income and output are used in economics to estimate total economic activity in a country or region, including gross domestic product (GDP), gross national product (GNP), net national income (NNI), and adjusted nati ...

. It employs

game theory Game theory is the study of mathematical models of strategic interactions among rational agents. Myerson, Roger B. (1991). ''Game Theory: Analysis of Conflict,'' Harvard University Press, p.&nbs1 Chapter-preview links, ppvii–xi It has appli ...

for modeling market or non-market behavior. Some important insights on collective behavior (for example,

emergence In philosophy, systems theory, science, and art, emergence occurs when an entity is observed to have properties its parts do not have on their own, properties or behaviors that emerge only when the parts interact in a wider whole. Emergence ...

organization An organization or organisation (Commonwealth English; see spelling differences), is an entity—such as a company, an institution, or an association—comprising one or more people and having a particular purpose. The word is derived from ...

s) have been incorporated through the

new institutional economics New Institutional Economics (NIE) is an economic perspective that attempts to extend economics by focusing on the institutions (that is to say the sociology, social and legal Norm (sociology), norms and rules) that underlie economic activity and ...

. A definition that captures much of modern economics is that of

Lionel Robbins Lionel Charles Robbins, Baron Robbins, (22 November 1898 – 15 May 1984) was a British economist, and prominent member of the economics department at the London School of Economics (LSE). He is known for his leadership at LSE, his proposed def ...

in a 1932 essay: "the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses."

Scarcity In economics, scarcity "refers to the basic fact of life that there exists only a finite amount of human and nonhuman resources which the best technical knowledge is capable of using to produce only limited maximum amounts of each economic good. ...

means that available

resources Resource refers to all the materials available in our environment which are technologically accessible, economically feasible and culturally sustainable and help us to satisfy our needs and wants. Resources can broadly be classified upon their a ...

are insufficient to satisfy all wants and needs. Absent scarcity and alternative uses of available resources, there is no

economic problem Economic systems as a type of social system must confront and solve the three fundamental economic problems:Samuelson, P. Anthony., Samuelson, W. (1980). Economics. 11th ed. / New York: McGraw-Hill. p. 34 * What kinds and quantities of goods s ...

. The subject thus defined involves the study of

choice A choice is the range of different things from which a being can choose. The arrival at a choice may incorporate motivators and models. For example, a traveler might choose a route for a journey based on the preference of arriving at a giv ...

, as affected by incentives and resources. Mainstream economics encompasses a wide (but not unbounded) range of views. Politically, most mainstream economists hold views ranging from

to modern liberalism. There are also differing views on certain empirical claims within macroeconomics, such as the effectiveness of expansionary

fiscal policy In economics and political science, fiscal policy is the use of government revenue collection (taxes or tax cuts) and expenditure to influence a country's economy. The use of government revenue expenditures to influence macroeconomic variables ...

under certain conditions. Disputes within mainstream macroeconomics tend to be characterised by disagreement over the convincingness of individual empirical claims (such as the predictive power of a specific model) and in this respect differ from the more fundamental conflicts over methodology that characterised previous periods (like those between

Monetarists Monetarism is a school of thought in monetary economics that emphasizes the role of governments in controlling the amount of money in circulation. Monetarist theory asserts that variations in the money supply have major influences on nationa ...

and Neo-Keynesians), in which economists of differing schools would disagree on whether a given work was even a legitimate contribution to the field.

Contemporary heterodox economics

In the late 19th century, a number of heterodox schools contended with the neoclassical school that arose following the marginal revolution. Most survive to the present day as self-consciously dissident schools, but with greatly diminished size and influence relative to

. The most significant are

Institutional economics Institutional economics focuses on understanding the role of the Sociocultural evolution, evolutionary process and the role of institutions in shaping Economy, economic Human behavior, behavior. Its original focus lay in Thorstein Veblen's instin ...

and the

Austrian School The Austrian School is a heterodox school of economic thought that advocates strict adherence to methodological individualism, the concept that social phenomena result exclusively from the motivations and actions of individuals. Austrian school ...

. The development of

was a substantial challenge to the dominant neoclassical school of economics. Keynesian views entered the mainstream as a result of the

neoclassical synthesis The neoclassical synthesis (NCS), neoclassical–Keynesian synthesis, or just neo-Keynesianism was a neoclassical economics academic movement and paradigm in economics that worked towards reconciling the macroeconomic thought of John Maynard Key ...

developed by

John Hicks Sir John Richards Hicks (8 April 1904 – 20 May 1989) was a British economist. He is considered one of the most important and influential economists of the twentieth century. The most familiar of his many contributions in the field of economic ...

. The rise of Keynesianism, and its incorporation into mainstream economics, reduced the appeal of heterodox schools. However, advocates of a more fundamental critique of neoclassical economics formed a school of

post-Keynesian economics Post-Keynesian economics is a school of economic thought with its origins in ''The General Theory'' of John Maynard Keynes, with subsequent development influenced to a large degree by Michał Kalecki, Joan Robinson, Nicholas Kaldor, Sidney Wei ...

. Heterodox approaches often embody criticisms of perceived "mainstream" approaches. For instance: * feminist economics criticizes the valuation of labor and argues female labor is systemically undervalued; * green economics criticizes instances of externalized and intangible ecosystems and argues for them to be brought into the tangible

capital asset A capital asset is defined as property of any kind held by an assessee, whether connected with their business or profession or not connected with their business or profession. It includes all kinds of property, movable or immovable, tangible or in ...

model as

natural capital Natural capital is the world's stock of natural resources, which includes geology, soils, air, water and all living organisms. Some natural capital assets provide people with free goods and services, often called ecosystem services. All of t ...

; and * post-keynesian economics disagrees with the notion of the long-term neutrality of demand, arguing that there is no natural tendency for a competitive market economy to reach

full employment Full employment is a situation in which there is no cyclical or unemployment#Cyclical unemployment, deficient-demand unemployment. Full employment does not entail the disappearance of all unemployment, as other kinds of unemployment, namely Structu ...

. Other viewpoints on economic issues from outside mainstream economics include

dependency theory Dependency theory is the notion that resources flow from a "periphery" of poor and underdeveloped states to a "core" of wealthy states, enriching the latter at the expense of the former. A central contention of dependency theory is that poor s ...

and

world systems theory World-systems theory (also known as world-systems analysis or the world-systems perspective)Immanuel Wallerstein, (2004), "World-systems Analysis." In ''World System History'', ed. George Modelski, in ''Encyclopedia of Life Support Systems'' (E ...

in the study of

international relations International relations (IR), sometimes referred to as international studies and international affairs, is the scientific study of interactions between sovereign states. In a broader sense, it concerns all activities between states—such as ...

Historical economic thought

Modern macro- and microeconomics are young sciences. But many in the past have thought on topics ranging from value to production relations. These forays into economic thought contribute to the modern understanding, ranging from ancient Greek conceptions of the role of the household and its choices to mercantilism and its emphasis on the hoarding of precious metals.

Ancient economic thought

Chanakya Chanakya (Sanskrit: चाणक्य; IAST: ', ; 375–283 BCE) was an ancient Indian polymath who was active as a teacher, author, strategist, philosopher, economist, jurist, and royal advisor. He is traditionally identified as Kauṭilya o ...

(Kautilya) *

Xenophon Xenophon of Athens (; grc, wikt:Ξενοφῶν, Ξενοφῶν ; – probably 355 or 354 BC) was a Greek military leader, philosopher, and historian, born in Athens. At the age of 30, Xenophon was elected commander of one of the biggest Anci ...

Aristotle Aristotle (; grc-gre, Ἀριστοτέλης ''Aristotélēs'', ; 384–322 BC) was a Greek philosopher and polymath during the Classical period in Ancient Greece. Taught by Plato, he was the founder of the Peripatetic school of phil ...

Qin Shi Huang Qin Shi Huang (, ; 259–210 BC) was the founder of the Qin dynasty and the first emperor of a unified China. Rather than maintain the title of "king" ( ''wáng'') borne by the previous Shang and Zhou rulers, he ruled as the First Emperor ( ...

Wang Anshi Wang Anshi ; ; December 8, 1021 – May 21, 1086), courtesy name Jiefu (), was a Chinese economist, philosopher, poet, and politician during the Song dynasty. He served as chancellor and attempted major and controversial socioeconomic reforms k ...

Islamic economics

Islamic economics is the practice of economics in accordance with

Islamic law Sharia (; ar, شريعة, sharīʿa ) is a body of religious law that forms a part of the Islamic tradition. It is derived from the religious precepts of Islam and is based on the sacred scriptures of Islam, particularly the Quran and the ...

. The origins can be traced back to the

Caliphate A caliphate or khilāfah ( ar, خِلَافَة, ) is an institution or public office under the leadership of an Islamic steward with the title of caliph (; ar, خَلِيفَة , ), a person considered a political-religious successor to th ...

, where an early

market economy A market economy is an economic system in which the decisions regarding investment, production and distribution to the consumers are guided by the price signals created by the forces of supply and demand, where all suppliers and consumers ...

and some of the earliest forms of

merchant capitalism Some economic historians use the term merchant capitalism to refer to the earliest phase in the development of capitalism as an economic and social system. However, others argue that mercantilism, which has flourished widely in the world without ...

took root between the 8th–12th centuries, which some refer to as "Islamic capitalism". Islamic economics seeks to enforce Islamic regulations not only on personal issues, but to implement broader economic goals and policies of an Islamic society, based on uplifting the deprived masses. It was founded on free and unhindered circulation of wealth so as to handsomely reach even the lowest echelons of society. One distinguishing feature is the tax on wealth (in the form of both

Zakat Zakat ( ar, زكاة; , "that which purifies", also Zakat al-mal , "zakat on wealth", or Zakah) is a form of almsgiving, often collected by the Muslim Ummah. It is considered in Islam as a religious obligation, and by Quranic ranking, is ne ...

and

Jizya Jizya ( ar, جِزْيَة / ) is a per capita yearly taxation historically levied in the form of financial charge on dhimmis, that is, permanent Kafir, non-Muslim subjects of a state governed by Sharia, Islamic law. The jizya tax has been unde ...

), and bans levying taxes on all kinds of trade and transactions (Income/Sales/Excise/Import/Export duties etc.). Another distinguishing feature is prohibition of interest in the form of excess charged while trading in money. Its pronouncement on use of paper currency also stands out. Though promissory notes are recognized, they must be fully backed by reserves.

Fractional-reserve banking Fractional-reserve banking is the system of banking operating in almost all countries worldwide, under which banks that take deposits from the public are required to hold a proportion of their deposit liabilities in liquid assets as a reserve, ...

is disallowed as a form of breach of

trust Trust often refers to: * Trust (social science), confidence in or dependence on a person or quality It may also refer to: Business and law * Trust law, a body of law under which one person holds property for the benefit of another * Trust (bus ...

. It saw innovations such as

trading companies Trade involves the transfer of goods and services from one person or entity to another, often in exchange for money. Economists refer to a system or network that allows trade as a market. An early form of trade, barter, saw the direct exchan ...

big business Big business involves large-scale corporate-controlled financial or business activities. As a term, it describes activities that run from "huge transactions" to the more general "doing big things". In corporate jargon, the concept is commonly kn ...

es,

contract A contract is a legally enforceable agreement between two or more parties that creates, defines, and governs mutual rights and obligations between them. A contract typically involves the transfer of goods, services, money, or a promise to tran ...

bills of exchange A negotiable instrument is a document guaranteeing the payment of a specific amount of money, either on demand, or at a set time, whose payer is usually named on the document. More specifically, it is a document contemplated by or consisting of a ...

, long-distance

international trade International trade is the exchange of capital, goods, and services across international borders or territories because there is a need or want of goods or services. (see: World economy) In most countries, such trade represents a significant ...

, the first forms of

partnership A partnership is an arrangement where parties, known as business partners, agree to cooperate to advance their mutual interests. The partners in a partnership may be individuals, businesses, interest-based organizations, schools, governments o ...

(''mufawada'') such as

limited partnership A limited partnership (LP) is a form of partnership similar to a general partnership except that while a general partnership must have at least two general partners (GPs), a limited partnership must have at least one GP and at least one limited ...

s (''mudaraba''), and the earliest forms of

credit Credit (from Latin verb ''credit'', meaning "one believes") is the trust which allows one party to provide money or resources to another party wherein the second party does not reimburse the first party immediately (thereby generating a debt), ...

debt Debt is an obligation that requires one party, the debtor, to pay money or other agreed-upon value to another party, the creditor. Debt is a deferred payment, or series of payments, which differentiates it from an immediate purchase. The ...

profit Profit may refer to: Business and law * Profit (accounting), the difference between the purchase price and the costs of bringing to market * Profit (economics), normal profit and economic profit * Profit (real property), a nonpossessory intere ...

loss Loss may refer to: Arts, entertainment, and media Music * ''Loss'' (Bass Communion album) (2006) * ''Loss'' (Mull Historical Society album) (2001) *"Loss", a song by God Is an Astronaut from their self-titled album (2008) * Losses "(Lil Tjay son ...

capital Capital may refer to: Common uses * Capital city, a municipality of primary status ** List of national capital cities * Capital letter, an upper-case letter Economics and social sciences * Capital (economics), the durable produced goods used f ...

(''al-mal''),

capital accumulation Capital accumulation is the dynamic that motivates the pursuit of profit, involving the investment of money or any financial asset with the goal of increasing the initial monetary value of said asset as a financial return whether in the form o ...

(''nama al-mal''),Jairus Banaji (2007), "Islam, the Mediterranean and the rise of capitalism", ''

Historical Materialism Historical materialism is the term used to describe Karl Marx's theory of history. Marx locates historical change in the rise of class societies and the way humans labor together to make their livelihoods. For Marx and his lifetime collaborat ...

'' 15 (1), pp. 47–74,

Brill Publishers Brill Academic Publishers (known as E. J. Brill, Koninklijke Brill, Brill ()) is a Dutch international academic publisher founded in 1683 in Leiden, Netherlands. With offices in Leiden, Boston, Paderborn and Singapore, Brill today publishes 27 ...

circulating capital Circulating capital includes intermediate goods and operating expenses, i.e., short-lived items that are used in production and used up in the process of creating other goods or services.Mark Blaug, 2008. "circulating capital," ''The New Palgrave ...

capital expenditure Capital expenditure or capital expense (capex or CAPEX) is the money an organization or corporate entity spends to buy, maintain, or improve its fixed assets, such as buildings, vehicles, equipment, or land. It is considered a capital expenditure ...

revenue In accounting, revenue is the total amount of income generated by the sale of goods and services related to the primary operations of the business. Commercial revenue may also be referred to as sales or as turnover. Some companies receive reven ...

cheque A cheque, or check (American English; see spelling differences) is a document that orders a bank (or credit union) to pay a specific amount of money from a person's account to the person in whose name the cheque has been issued. The pers ...

promissory note A promissory note, sometimes referred to as a note payable, is a legal instrument (more particularly, a financing instrument and a debt instrument), in which one party (the ''maker'' or ''issuer'') promises in writing to pay a determinate sum of ...

trusts A trust is a legal relationship in which the holder of a right gives it to another person or entity who must keep and use it solely for another's benefit. In the Anglo-American common law, the party who entrusts the right is known as the "settl ...

(see ''

Waqf A waqf ( ar, وَقْف; ), also known as hubous () or '' mortmain'' property is an inalienable charitable endowment under Islamic law. It typically involves donating a building, plot of land or other assets for Muslim religious or charitabl ...

''),

startup companies A startup or start-up is a company or project undertaken by an entrepreneur to seek, develop, and validate a scalable business model. While entrepreneurship refers to all new businesses, including self-employment and businesses that never intend t ...

savings account A savings account is a bank account at a retail bank. Common features include a limited number of withdrawals, a lack of cheque and linked debit card facilities, limited transfer options and the inability to be overdrawn. Traditionally, transac ...

transactional account A transaction account, also called a checking account, chequing account, current account, demand deposit account, or share draft account at credit unions, is a deposit account held at a bank or other financial institution. It is available to the ...

pawning A pawnbroker is an individual or business (pawnshop or pawn shop) that offers secured loans to people, with items of personal property used as Collateral (finance), collateral. The items having been ''pawned'' to the broker are themselves c ...

loan In finance, a loan is the lending of money by one or more individuals, organizations, or other entities to other individuals, organizations, etc. The recipient (i.e., the borrower) incurs a debt and is usually liable to pay interest on that d ...

ing,

exchange rate In finance, an exchange rate is the rate at which one currency will be exchanged for another currency. Currencies are most commonly national currencies, but may be sub-national as in the case of Hong Kong or supra-national as in the case of ...

bank A bank is a financial institution that accepts deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital markets. Because ...

ers,

money changer A money changer is a person or organization whose business is the exchange of coins or currency of one country for that of another. This trade was a predecessor of modern banking. The advent of paper money in the mid-17th century and the develop ...

ledger A ledger is a book or collection of accounts in which account transactions are recorded. Each account has an opening or carry-forward balance, and would record each transaction as either a debit or credit in separate columns, and the ending or ...

deposits A deposit account is a bank account maintained by a financial institution in which a customer can deposit and withdraw money. Deposit accounts can be savings accounts, Transaction account#Current accounts, current accounts or any of several othe ...

, assignments, the

double-entry bookkeeping system Double-entry bookkeeping, also known as double-entry accounting, is a method of bookkeeping that relies on a two-sided accounting entry to maintain financial information. Every entry to an account requires a corresponding and opposite entry t ...

lawsuit - A lawsuit is a proceeding by a party or parties against another in the civil court of law. The archaic term "suit in law" is found in only a small number of laws still in effect today. The term "lawsuit" is used in reference to a civil actio ...

s, and

agency Agency may refer to: Organizations * Institution, governmental or others ** Advertising agency or marketing agency, a service business dedicated to creating, planning and handling advertising for its clients ** Employment agency, a business that ...

institution. This school has seen a revived interest in development and understanding since the later part of the 20th century. *

Muhammad Muhammad ( ar, مُحَمَّد; 570 – 8 June 632 Common Era, CE) was an Arab religious, social, and political leader and the founder of Islam. According to Muhammad in Islam, Islamic doctrine, he was a prophet Divine inspiration, di ...

Abu Hanifa an-Nu‘man Nuʿmān ibn Thābit ibn Zūṭā ibn Marzubān ( ar, نعمان بن ثابت بن زوطا بن مرزبان; –767), commonly known by his '' kunya'' Abū Ḥanīfa ( ar, أبو حنيفة), or reverently as Imam Abū Ḥanīfa by Sunni Mus ...

Abu Yusuf Ya'qub ibn Ibrahim al-Ansari () better known as Abu Yusuf ( ar, أبو يوسف, Abū Yūsuf) (d.798) was a student of jurist Abu Hanifa (d.767) who helped spread the influence of the Hanafi school of Sharia, Islamic law through his writings and ...

Al-Farabi Abu Nasr Muhammad Al-Farabi ( fa, ابونصر محمد فارابی), ( ar, أبو نصر محمد الفارابي), known in the Western world, West as Alpharabius; (c. 872 – between 14 December, 950 and 12 January, 951)PDF version was a reno ...

(Alpharabius) *

Shams al-Mo'ali Abol-hasan Ghaboos ibn Wushmgir Qabus ibn Wushmagir (full name: ''Abol-Hasan Qābūs ibn Wušmagīr ibn Ziyar Sams al-maʿālī'', ; (died 1012) (r. 977–981; 997–1012) was the Ziyarid ruler of Gurgan and Tabaristan in medieval Iran. His father was Vushmgir and his mother wa ...

(Qabus) *

Ibn Sina Ibn Sina ( fa, ابن سینا; 980 – June 1037 CE), commonly known in the West as Avicenna (), was a Persian polymath who is regarded as one of the most significant physicians, astronomers, philosophers, and writers of the Islamic G ...

(Avicenna) *

Ibn Miskawayh Ibn Miskawayh ( fa, مُسْکُـوْيَه Muskūyah, 932–1030), full name Abū ʿAlī Aḥmad ibn Muḥammad ibn Yaʿqūb ibn Miskawayh was a Persian chancery official of the Buyid era, and philosopher and historian from Parandak, Iran. As ...

Al-Ghazali Al-Ghazali ( – 19 December 1111; ), full name (), and known in Persian-speaking countries as Imam Muhammad-i Ghazali (Persian: امام محمد غزالی) or in Medieval Europe by the Latinized as Algazelus or Algazel, was a Persian polymat ...

(Algazel) *

Ibn Taymiyyah Ibn Taymiyyah (January 22, 1263 – September 26, 1328; ar, ابن تيمية), birth name Taqī ad-Dīn ʾAḥmad ibn ʿAbd al-Ḥalīm ibn ʿAbd al-Salām al-Numayrī al-Ḥarrānī ( ar, تقي الدين أحمد بن عبد الحليم � ...

Al-Mawardi Abū al-Ḥasan ʿAlī Ibn Muḥammad al-Māwardī (), known in Latin as Alboacen (972–1058 CE), was an Islamic jurist of the Shafi'i school most remembered for his works on religion, government, the caliphate, and public and constitutional law ...

Nasīr al-Dīn al-Tūsī Muhammad ibn Muhammad ibn al-Hasan al-Tūsī ( fa, محمد ابن محمد ابن حسن طوسی 18 February 1201 – 26 June 1274), better known as Nasir al-Din al-Tusi ( fa, نصیر الدین طوسی, links=no; or simply Tusi in the West ...

(Tusi) *

Ibn Khaldun Ibn Khaldun (; ar, أبو زيد عبد الرحمن بن محمد بن خلدون الحضرمي, ; 27 May 1332 – 17 March 1406, 732-808 AH) was an Arab The Historical Muhammad', Irving M. Zeitlin, (Polity Press, 2007), p. 21; "It is, of ...

Al-Maqrizi Al-Maqrīzī or Maḳrīzī (Arabic: ), whose full name was Taqī al-Dīn Abū al-'Abbās Aḥmad ibn 'Alī ibn 'Abd al-Qādir ibn Muḥammad al-Maqrīzī (Arabic: ) (1364–1442) was a medieval Egyptian Arab historian during the Mamluk era, kn ...

Muhammad Baqir al-Sadr Muhammad Baqir al-Sadr ( ar, آية الله العظمى السيد محمد باقر الصدر; 1 March 1935 – 9 April 1980), also known as al-Shahīd al-Khāmis (the fifth martyr), was an Iraqi philosopher, and the ideological founde ...

Scholasticism

Nicole Oresme Nicole Oresme (; c. 1320–1325 – 11 July 1382), also known as Nicolas Oresme, Nicholas Oresme, or Nicolas d'Oresme, was a French philosopher of the later Middle Ages. He wrote influential works on economics, mathematics, physics, astrology an ...

Thomas Aquinas Thomas Aquinas, OP (; it, Tommaso d'Aquino, lit=Thomas of Aquino; 1225 – 7 March 1274) was an Italian Dominican friar and priest who was an influential philosopher, theologian and jurist in the tradition of scholasticism; he is known wi ...

School of Salamanca The School of Salamanca ( es, Escuela de Salamanca) is the Renaissance of thought in diverse intellectual areas by Spanish theologians, rooted in the intellectual and pedagogical work of Francisco de Vitoria. From the beginning of the 16th cen ...

Leonardus Lessius Leonardus Lessius ( nl, Lenaert Leys; 1 October 1554, in Brecht – 15 January 1623, in Leuven) was a Flemish moral theologian from the Jesuit order. Life At the age of thirteen the young Leonard won the Brecht scholarship to the University of ...

Mercantilism

Economic policy in Europe during the late Middle Ages and early

Renaissance The Renaissance ( , ) , from , with the same meanings. is a period in European history marking the transition from the Middle Ages to modernity and covering the 15th and 16th centuries, characterized by an effort to revive and surpass ideas ...

treated economic activity as a good which was to be

tax A tax is a compulsory financial charge or some other type of levy imposed on a taxpayer (an individual or legal entity) by a governmental organization in order to fund government spending and various public expenditures (regional, local, or n ...

ed to raise revenues for the

nobility Nobility is a social class found in many societies that have an aristocracy (class), aristocracy. It is normally ranked immediately below Royal family, royalty. Nobility has often been an Estates of the realm, estate of the realm with many e ...

and the

church Church may refer to: Religion * Church (building), a building for Christian religious activities * Church (congregation), a local congregation of a Christian denomination * Church service, a formalized period of Christian communal worship * Chris ...

. Economic exchanges were regulated by

feudal Feudalism, also known as the feudal system, was the combination of the legal, economic, military, cultural and political customs that flourished in Middle Ages, medieval Europe between the 9th and 15th centuries. Broadly defined, it was a wa ...

rights, such as the right to collect a

toll Toll may refer to: Transportation * Toll (fee) a fee charged for the use of a road or waterway ** Road pricing, the modern practice of charging for road use ** Road toll (historic), the historic practice of charging for road use ** Shadow toll, ...

or hold a

fair A fair (archaic: faire or fayre) is a gathering of people for a variety of entertainment or commercial activities. Fairs are typically temporary with scheduled times lasting from an afternoon to several weeks. Types Variations of fairs incl ...

, as well as

guild A guild ( ) is an association of artisans and merchants who oversee the practice of their craft/trade in a particular area. The earliest types of guild formed as organizations of tradesmen belonging to a professional association. They sometimes ...

restrictions and religious restrictions on

lending In finance, a loan is the lending of money by one or more individuals, organizations, or other entities to other individuals, organizations, etc. The recipient (i.e., the borrower) incurs a debt and is usually liable to pay interest on that de ...

. Economic policy, such as it was, was designed to encourage trade through a particular area. Because of the importance of

social class A social class is a grouping of people into a set of Dominance hierarchy, hierarchical social categories, the most common being the Upper class, upper, Middle class, middle and Working class, lower classes. Membership in a social class can for ...

sumptuary laws Sumptuary laws (from Latin ''sūmptuāriae lēgēs'') are laws that try to regulate consumption. ''Black's Law Dictionary'' defines them as "Laws made for the purpose of restraining luxury or extravagance, particularly against inordinate expendi ...

were enacted, regulating dress and housing, including allowable styles, materials and frequency of purchase for different classes.

Niccolò Machiavelli Niccolò di Bernardo dei Machiavelli ( , , ; 3 May 1469 – 21 June 1527), occasionally rendered in English as Nicholas Machiavel ( , ; see below), was an Italian diplomat, author, philosopher and historian who lived during the Renaissance. ...

in his book ''

The Prince ''The Prince'' ( it, Il Principe ; la, De Principatibus) is a 16th-century political treatise written by Italian diplomat and political theorist Niccolò Machiavelli as an instruction guide for new princes and royals. The general theme of ''The ...

'' was one of the first authors to theorize economic policy in the form of advice. He did so by stating that princes and

republic A republic () is a "state in which power rests with the people or their representatives; specifically a state without a monarchy" and also a "government, or system of government, of such a state." Previously, especially in the 17th and 18th c ...

s should limit their expenditures and prevent either the wealthy or the populace from despoiling the other. In this way a state would be seen as "generous" because it was not a heavy burden on its citizens. *

Gerard de Malynes Gerard de Malynes (fl. 1585–1627) was an independent merchant in foreign trade, an English commissioner in the Spanish Netherlands, a government advisor on trade matters, assay master of the mint, and commissioner of mint affairs. His dates of b ...

Edward Misselden Edward Misselden ( fl. 1608–1654) was an English merchant, and leading member of the writers in the Mercantilist group of economic thought. He argued that international movements of money and fluctuations in the exchange rate depended upon the i ...

Thomas Mun Sir Thomas Mun (17 June 157121 July 1641) was an English writer on economics and is often referred to as the last of the early mercantilists. Most notably, he is known for serving as the director of the East India Company. Due to his strong be ...

Jean Bodin Jean Bodin (; c. 1530 – 1596) was a French jurist and political philosopher, member of the Parlement of Paris and professor of law in Toulouse. He is known for his theory of sovereignty. He was also an influential writer on demonology. Bodin l ...

Jean Baptiste Colbert Jean-Baptiste Colbert (; 29 August 1619 – 6 September 1683) was a French statesman who served as First Minister of State from 1661 until his death in 1683 under the rule of King Louis XIV. His lasting impact on the organization of the country ...

Josiah Child Sir Josiah Child, 1st Baronet, , (c. 1630/31 – 22 June 1699) was an English economist, merchant and politician. He was an economist proponent of mercantilism and governor of the East India Company. He led the company in the Anglo-Mughal War. ...

William Petty Sir William Petty FRS (26 May 1623 – 16 December 1687) was an English economist, physician, scientist and philosopher. He first became prominent serving Oliver Cromwell and the Commonwealth in Ireland. He developed efficient methods to su ...

John Locke John Locke (; 29 August 1632 – 28 October 1704) was an English philosopher and physician, widely regarded as one of the most influential of Age of Enlightenment, Enlightenment thinkers and commonly known as the "father of liberalism ...

Charles Davenant Charles Davenant (1656–1714) was an English mercantilist economist, politician, and pamphleteer. He was Tory member of Parliament for St Ives (Cornwall), and for Great Bedwyn. Life He was born in London as the eldest son of Sir William Davena ...

* Dudley North *

Ferdinando Galiani Ferdinando Galiani (2 December 1728, Chieti, Kingdom of Naples – 30 October 1787, Naples, Kingdom of Naples) was an Italian economist, a leading Italian figure of the Enlightenment. Friedrich Nietzsche referred to him as "a most fastidious and ...

James Denham-Steuart Sir James Steuart, 3rd Baronet of Goodtrees and 7th Baronet of Coltness (; 21 October 1712 – 26 November 1780), also known as Sir James Steuart Denham and Sir James Denham Steuart, was a prominent Scottish Jacobite and author of "probably ...

Physiocrats

The Physiocrats were 18th century French economists who emphasized the importance of productive work, and particularly agriculture, to an economy's wealth. Their early support of free trade and deregulation influenced

and the classical economists. *

Anne Robert Jacques Turgot Anne Robert Jacques Turgot, Baron de l'Aulne ( ; ; 10 May 172718 March 1781), commonly known as Turgot, was a French economist and statesman. Originally considered a physiocrat, he is today best remembered as an early advocate for economic libe ...

François Quesnay François Quesnay (; 4 June 1694 – 16 December 1774) was a French economist and physician of the Physiocratic school. He is known for publishing the "Tableau économique" (Economic Table) in 1758, which provided the foundations of the ideas of ...

Pierre le Pesant de Boisguilbert Pierre le Pesant, sieur de Boisguilbert or Boisguillebert (; 17 February 164610 October 1714) was a French lawmaker and a Jansenist, one of the inventors of the notion of an economic market. Early life He was born at Rouen of an ancient noble fami ...

Richard Cantillon Richard Cantillon (; 1680s – ) was an Irish-French economist and author of '' Essai Sur La Nature Du Commerce En Général'' (''Essay on the Nature of Trade in General''), a book considered by William Stanley Jevons to be the "cradle of p ...

Classical political economy

Classical economics, also called classical

political economy Political economy is the study of how Macroeconomics, economic systems (e.g. Marketplace, markets and Economy, national economies) and Politics, political systems (e.g. law, Institution, institutions, government) are linked. Widely studied ph ...

, was the original form of mainstream economics of the 18th and 19th centuries. Classical economics focuses on the tendency of markets to move to equilibrium and on objective theories of value. Neo-classical economics differs from classical economics primarily in being

utilitarian In ethical philosophy, utilitarianism is a family of normative ethical theories that prescribe actions that maximize happiness and well-being for all affected individuals. Although different varieties of utilitarianism admit different charac ...

in its value theory and using marginal theory as the basis of its models and equations. Marxian economics also descends from classical theory.

Anders Chydenius Anders Chydenius (; 26 February 1729 – 1 February 1803) was a Sweden–Finland, Swedish-Finnish Lutheran priest and a member of the Swedish Riksdag of Sweden, Riksdag, and is known as the leading classical liberalism, classical liberal of Nordi ...

(1729–1803) was the leading

classical liberal Classical liberalism is a political tradition and a branch of liberalism that advocates free market and laissez-faire economics; civil liberties under the rule of law with especial emphasis on individual autonomy, limited government, economic ...

of Nordic history. Chydenius, who was a

Finnish Finnish may refer to: * Something or someone from, or related to Finland * Culture of Finland * Finnish people or Finns, the primary ethnic group in Finland * Finnish language, the national language of the Finnish people * Finnish cuisine See also ...

priest and

member of parliament A member of parliament (MP) is the representative in parliament of the people who live in their electoral district. In many countries with bicameral parliaments, this term refers only to members of the lower house since upper house members of ...

, published a book called ''

The National Gain ''The National Gain'' (Swedish title: ''Den Nationnale Winsten'') is the main work of the Swedish-Finnish scientist, philosopher and politician Anders Chydenius, published in 1765. In this thesis Chydenius argues in favour of free export trade ...

'' in 1765, in which he proposes ideas of freedom of trade and industry and explores the relationship between economy and society and lays out the principles of

liberalism Liberalism is a political and moral philosophy based on the rights of the individual, liberty, consent of the governed, political equality and equality before the law."political rationalism, hostility to autocracy, cultural distaste for c ...

, all of this eleven years before

published a similar and more comprehensive book, ''The Wealth of Nations''. According to Chydenius, democracy, equality and a respect for human rights were the only way towards progress and happiness for the whole of society. *

* Francis Hutcheson *

Bernard de Mandeville Bernard Mandeville, or Bernard de Mandeville (; 15 November 1670 – 21 January 1733), was an Anglo-Dutch philosopher, political economist and satirist. Born in Rotterdam, Netherlands, he lived most of his life in England and used English for ...

David Hume David Hume (; born David Home; 7 May 1711 NS (26 April 1711 OS) – 25 August 1776) Cranston, Maurice, and Thomas Edmund Jessop. 2020 999br>David Hume" ''Encyclopædia Britannica''. Retrieved 18 May 2020. was a Scottish Enlightenment philo ...

Henry George Henry George (September 2, 1839 – October 29, 1897) was an American political economist and journalist. His writing was immensely popular in 19th-century America and sparked several reform movements of the Progressive Era. He inspired the eco ...

Thomas Malthus Thomas Robert Malthus (; 13/14 February 1766 – 29 December 1834) was an English cleric, scholar and influential economist in the fields of political economy and demography. In his 1798 book '' An Essay on the Principle of Population'', Mal ...

James Mill James Mill (born James Milne; 6 April 1773 – 23 June 1836) was a Scottish historian, economist, political theorist, and philosopher. He is counted among the founders of the Ricardian school of economics. He also wrote ''The History of British ...

Francis Place Francis Place (3 November 1771 in London – 1 January 1854 in London) was an English social reformer. Early life He was an illegitimate son of Simon Place and Mary Gray. His father was originally a journeyman baker. He then became a Marshalse ...

David Ricardo David Ricardo (18 April 1772 – 11 September 1823) was a British Political economy, political economist. He was one of the most influential of the Classical economics, classical economists along with Thomas Robert Malthus, Thomas Malthus, Ad ...

* Henry Thornton *

John Ramsay McCulloch John Ramsay McCulloch (1 March 1789 – 11 November 1864) was a Scottish economist, author and editor, widely regarded as the leader of the Ricardian school of economists after the death of David Ricardo in 1823. He was appointed the first pr ...

James Maitland, 8th Earl of Lauderdale James Maitland, 8th Earl of Lauderdale (26 January 1759 – 10 September 1839) was Keeper of the Great Seal of Scotland and a representative peer for Scotland in the House of Lords. Early years Born at Haltoun House near Ratho, the eldest s ...

Jeremy Bentham Jeremy Bentham (; 15 February 1748 Old_Style_and_New_Style_dates">O.S._4_February_1747.html" ;"title="Old_Style_and_New_Style_dates.html" ;"title="nowiki/>Old Style and New Style dates">O.S. 4 February 1747">Old_Style_and_New_Style_dates.htm ...

Jean Charles Léonard de Sismondi Jean Charles Léonard de Sismondi (also known as Jean Charles Leonard Simonde de Sismondi) (; 9 May 1773 – 25 June 1842), whose real name was Simonde, was a Swiss historian and political economist, who is best known for his works on French and ...

Johann Heinrich von Thünen Johann Heinrich von Thünen (24 June 1783 – 22 September 1850), sometimes spelled Thuenen, was a prominent nineteenth century economist and a native of Mecklenburg-Strelitz, now in northern Germany.He "ranks alongside Marx as the greatest Ger ...

John Stuart Mill John Stuart Mill (20 May 1806 – 7 May 1873) was an English philosopher, political economist, Member of Parliament (MP) and civil servant. One of the most influential thinkers in the history of classical liberalism, he contributed widely to ...

Nassau William Senior Nassau William Senior (; 26 September 1790 – 4 June 1864), was an English lawyer known as an economist. He was also a government adviser over several decades on economic and social policy on which he wrote extensively. Early life He was born ...

Edward Gibbon Wakefield Edward Gibbon Wakefield (20 March 179616 May 1862) is considered a key figure in the establishment of the colonies of South Australia and New Zealand (where he later served as a member of parliament). He also had significant interests in Britis ...

* John Rae *

Thomas Tooke Thomas Tooke (; 28 February 177426 February 1858) was an English economist known for writing on money and economic statistics. After Tooke's death the Statistical Society endowed the Tooke Chair of economics at King's College London, and a Tooke ...

* Robert Torrens

American School

The American School owes its origin to the writings and economic policies of

Alexander Hamilton Alexander Hamilton (January 11, 1755 or 1757July 12, 1804) was an American military officer, statesman, and Founding Father who served as the first United States secretary of the treasury from 1789 to 1795. Born out of wedlock in Charlest ...

, the first

Treasury Secretary of the United States The United States secretary of the treasury is the head of the United States Department of the Treasury, and is the chief financial officer of the federal government of the United States. The secretary of the treasury serves as the principal a ...

. It emphasized high

tariffs A tariff is a tax imposed by the government of a country or by a supranational union on imports or exports of goods. Besides being a source of revenue for the government, import duties can also be a form of regulation of foreign trade and polic ...

on imports to help develop the fledgling American manufacturing base and to finance infrastructure projects, as well as National Banking,

Public Credit A country's gross government debt (also called public debt, or sovereign debt) is the financial liabilities of the government sector. Changes in government debt over time reflect primarily borrowing due to past government deficits. A deficit oc ...

, and government investment into advanced scientific and technological research and development.

Friedrich List Georg Friedrich List (6 August 1789 – 30 November 1846) was a German-American economist who developed the "National System" of political economy. He was a forefather of the German historical school of economics, and argued for the German Customs ...

, one of the most famous proponents of the

economic system An economic system, or economic order, is a system of Production (economics), production, resource allocation and Distribution (economics), distribution of goods and services within a society or a given geographic area. It includes the combinati ...

, named it the National System, and was the main impetus behind the development of the German

Zollverein The (), or German Customs Union, was a coalition of German states formed to manage tariffs and economic policies within their territories. Organized by the 1833 treaties, it formally started on 1 January 1834. However, its foundations had b ...

and the economic policies of Germany under Chancellor

Otto Von Bismarck Otto, Prince of Bismarck, Count of Bismarck-Schönhausen, Duke of Lauenburg (, ; 1 April 1815 – 30 July 1898), born Otto Eduard Leopold von Bismarck, was a conservative German statesman and diplomat. From his origins in the upper class of J ...

beginning in 1879. *

John Quincy Adams John Quincy Adams (; July 11, 1767 – February 23, 1848) was an American statesman, diplomat, lawyer, and diarist who served as the sixth president of the United States, from 1825 to 1829. He previously served as the eighth United States S ...

Henry Clay Henry Clay Sr. (April 12, 1777June 29, 1852) was an American attorney and statesman who represented Kentucky in both the U.S. Senate and House of Representatives. He was the seventh House speaker as well as the ninth secretary of state, al ...

Mathew Carey Mathew Carey (January 28, 1760 – September 16, 1839) was an Irish-born American publisher and economist who lived and worked in Philadelphia, Pennsylvania. He was the father of economist Henry Charles Carey. Early life and education Carey ...

Henry Charles Carey Henry Charles Carey (December 15, 1793 – October 13, 1879) was the leading 19th-century economist of the American School, and chief economic adviser to U.S. President Abraham Lincoln. Carey is best known for the book ''The Harmony of Interest ...

Abraham Lincoln Abraham Lincoln ( ; February 12, 1809 – April 15, 1865) was an American lawyer, politician, and statesman who served as the 16th president of the United States from 1861 until his assassination in 1865. Lincoln led the nation thro ...

Arthur Griffith Arthur Joseph Griffith ( ga, Art Seosamh Ó Gríobhtha; 31 March 1871 – 12 August 1922) was an Irish writer, newspaper editor and politician who founded the political party Sinn Féin. He led the Irish delegation at the negotiations that prod ...

William McKinley William McKinley (January 29, 1843September 14, 1901) was the 25th president of the United States, serving from 1897 until his assassination in 1901. As a politician he led a realignment that made his Republican Party largely dominant in ...

French Liberal School

The French Liberal School (also called the "Optimist School" or "Orthodox School") is a 19th-century school of economic thought that was centered on the Collège de France and the Institut de France. The Journal des Économistes was instrumental in promulgating the ideas of the School. The School voraciously defended free trade and laissez-faire capitalism. They were primary opponents of collectivist, interventionist and protectionist ideas. This made the French School a forerunner of the modern Austrian School. *

Frédéric Bastiat Claude-Frédéric Bastiat (; ; 30 June 1801 – 24 December 1850) was a French economist, writer and a prominent member of the French Liberal School. A member of the French National Assembly, Bastiat developed the economic concept of opportuni ...

Maurice Block Maurice Block (german: link=no, Moritz Block); 18 February 18169 January 1901) was a German-French statistician and economist. Block was born in Berlin of Jewish parents. He studied at the University of Bonn and the University of Heidelberg and ...

Pierre Paul Leroy-Beaulieu Pierre Paul Leroy-Beaulieu (9 December 1843 in Saumur – 9 December 1916 in Paris) was a French economist, brother of Henri Jean Baptiste Anatole Leroy-Beaulieu, born at Saumur, Maine-et-Loire on 9 December 1843, and educated in Paris at th ...

Gustave de Molinari Gustave de Molinari (; 3 March 1819 – 28 January 1912) was a Belgian political economist and French Liberal School theorist associated with French ''laissez-faire'' economists such as Frédéric Bastiat and Hippolyte Castille. Biography Bor ...

Yves Guyot Yves Guyot (6 September 184322 February 1928) was a French politician and economist. Biography He was born at Dinan. Educated at Rennes, he took up the profession of journalism, coming to Paris in 1867. He was for a short period editor-in-chief of ...

Jean-Baptiste Say Jean-Baptiste Say (; 5 January 1767 – 15 November 1832) was a liberal French economist and businessman who argued in favor of competition, free trade and lifting restraints on business. He is best known for Say's law—also known as the law of ...

Léon Say Jean-Baptiste-Léon Say (6 June 1826, Paris – 21 April 1896, Paris) was a French statesman and diplomat. One of the 19th-century's noted economists, he served as French Finance Minister from 1872 until 1883. Biography The Say family is a mos ...

Historical school

The

was an approach to academic economics and to public administration that emerged in the 19th century in Germany, and held sway there until well into the 20th century. The Historical school held that history was the key source of knowledge about human actions and economic matters, since economics was culture-specific, and hence not generalizable over space and time. The School rejected the universal validity of economic theorems. They saw economics as resulting from careful empirical and historical analysis instead of from logic and mathematics. The School preferred historical, political, and social studies to self-referential mathematical modelling. Most members of the school were also Kathedersozialisten, i.e. concerned with social reform and improved conditions for the common man during a period of heavy industrialization. The Historical School can be divided into three tendencies: the Older, led by

Wilhelm Roscher Wilhelm Georg Friedrich Roscher (; 21 October 18174 June 1894) was a German economist from Hanover. Biography Roscher studied at Göttingen, where he became a member of Corps Hannovera, and Berlin, and obtained a professorship at Göttingen in ...

Karl Knies Karl Gustav Adolf Knies (29 March 18213 August 1898) was a German economist of the historical school of economics, best known as the author of ''Political Economy from the Standpoint of the Historical Method'' (1853). Knies taught at the Universi ...

, and

Bruno Hildebrand Bruno Hildebrand (6 March 1812 – 29 January 1878) was a German economist representing the "older" historical school of economics. His economic thinking was highly critical of classical economists, especially of David Ricardo. His ''magnum opus' ...

; the Younger, led by

Gustav von Schmoller Gustav Friedrich (after 1908: von) Schmoller (; 24 June 1838 – 27 June 1917) was the leader of the "younger" German historical school of economics. He was a leading '' Sozialpolitiker'' (more derisively, '' Kathedersozialist'', "Socialist of t ...

, and also including

Étienne Laspeyres Ernst Louis Étienne Laspeyres (; 28 November 1834 – 4 August 1913) was a German economist. He was ''Professor ordinarius'' of economics and statistics or '' State Sciences'' and cameralistics (public finance and administration) in Basel, Riga ...

Karl Bücher Karl Wilhelm Bücher (16 February 1847, Kirberg, Hesse – 12 November 1930, Leipzig, Saxony) was a German economist, one of the founders of non-market economics, and the founder of journalism as an academic discipline. Biography Early life ...

Adolph Wagner Adolph Wagner (25 March 1835 – 8 November 1917) was a German economist and politician, a leading ''Kathedersozialist'' (academic socialist) and public finance scholar and advocate of agrarianism. Wagner's law of increasing state activity is ...

, and to some extent

Lujo Brentano Lujo Brentano (; ; 18 December 1844 – 9 September 1931) was an eminent German economist and social reformer. Biography Lujo Brentano, born in Aschaffenburg into a distinguished German Catholic intellectual family (originally of Italian desce ...

; the Youngest, led by

Werner Sombart Werner Sombart (; ; 19 January 1863 – 18 May 1941) was a German economist and sociologist, the head of the "Youngest Historical School" and one of the leading Continental European social scientists during the first quarter of the 20th century. ...

and including, to a very large extent,

Max Weber Maximilian Karl Emil Weber (; ; 21 April 186414 June 1920) was a German sociologist, historian, jurist and political economist, who is regarded as among the most important theorists of the development of modern Western society. His ideas profo ...

. Predecessors included

. The Historical school largely controlled appointments to Chairs of Economics in German universities, as many of the advisors of Friedrich Althoff, head of the university department in the Prussian Ministry of Education 1882–1907, had studied under members of the School. Moreover, Prussia was the intellectual powerhouse of Germany and so dominated academia, not only in central Europe, but also in the United States until about 1900, because the American economics profession was led by holders of German Ph.Ds. The Historical school was involved in the ''

Methodenstreit ''Methodenstreit'' (German for "method dispute"), in intellectual history beyond German-language discourse, was an economics controversy commenced in the 1880s and persisting for more than a decade, between that field's Austrian School and the (Ge ...

'' ("strife over method") with the Austrian School, whose orientation was more theoretical and a prioristic. In English speaking countries, the Historical school is perhaps the least known and least understood approach to the study of economics, because it differs radically from the now-dominant Anglo-American analytical point of view. Yet the Historical school forms the basis—both in theory and in practice—of the

social market economy The social market economy (SOME; german: soziale Marktwirtschaft), also called Rhine capitalism, Rhine-Alpine capitalism, the Rhenish model, and social capitalism, is a socioeconomic model combining a free-market capitalist economic system alon ...

, for many decades the dominant economic paradigm in most countries of continental Europe. The Historical school is also a source of

Joseph Schumpeter Joseph Alois Schumpeter (; February 8, 1883 – January 8, 1950) was an Austrian-born political economist. He served briefly as Finance Minister of German-Austria in 1919. In 1932, he emigrated to the United States to become a professor at Ha ...

's dynamic, change-oriented, and innovation-based economics. Although his writings could be critical of the School, Schumpeter's work on the role of innovation and entrepreneurship can be seen as a continuation of ideas originated by the Historical School, especially the work of von Schmoller and Sombart. *

Karl Polanyi Karl Paul Polanyi (; hu, Polányi Károly ; 25 October 1886 – 23 April 1964),''Encyclopædia Britannica'' (Chicago: Encyclopædia Britannica Inc. 2003) vol 9. p. 554 was an Austro-Hungarian economic anthropologist and politician, best known ...

English historical school

Although not nearly as famous as its German counterpart, there was also an English Historical School, whose figures included

William Whewell William Whewell ( ; 24 May 17946 March 1866) was an English polymath, scientist, Anglican priest, philosopher, theologian, and historian of science. He was Master of Trinity College, Cambridge. In his time as a student there, he achieved dist ...

, Richard Jones,

Thomas Edward Cliffe Leslie Thomas Edward Cliffe Leslie (21 June 182527 January 1882) was an Irish jurist and economist. He was professor of jurisprudence and political economy in Queen's College, Belfast, noted for challenging the Wages-Fund doctrine and for addressing ...

Walter Bagehot Walter Bagehot ( ; 3 February 1826 – 24 March 1877) was an English journalist, businessman, and essayist, who wrote extensively about government, economics, literature and race. He is known for co-founding the ''National Review'' in 1855 ...

Thorold Rogers James Edwin Thorold Rogers (23 March 1823 – 14 October 1890), known as Thorold Rogers, was an English economist, historian and Liberal politician who sat in the House of Commons from 1880 to 1886. He deployed historical and statistical method ...

, Arnold Toynbee, William Cunningham, and William Ashley. It was this school that heavily critiqued the deductive approach of the classical economists, especially the writings of

. This school revered the inductive process and called for the merging of historical fact with those of the present period. *

Edmund Burke Edmund Burke (; 12 January NS.html"_;"title="New_Style.html"_;"title="/nowiki>New_Style">NS">New_Style.html"_;"title="/nowiki>New_Style">NS/nowiki>_1729_–_9_July_1797)_was_an_ NS.html"_;"title="New_Style.html"_;"title="/nowiki>New_Style"> ...

* Richard Jones *

* William J. Ashley * William Cunningham

French historical school

Clément Juglar Clément Juglar (15 October 1819 – 28 February 1905) was a French doctor and statistician. Juglar cycles He was one of the first to develop an economic theory of business cycles.The New Encyclopædia Britannica: Macropaedia 1998 "The first autho ...

Charles Gide Charles Gide (; 1847–1932) was a French economist and historian of economic thought. He was a professor at the University of Bordeaux, at Montpellier, at Université de Paris and finally at Collège de France. His nephew was the author André ...

Albert Aftalion Albert Abram Aftalion (October 21, 1874, Rusçuk, Ottoman Empire – December 6, 1956, Geneva, Switzerland) was a French economist. He taught at the Paris University (1925–1939). He co-founded the academic journal '' Revue économique'' in 195 ...

* Émile Levasseur *

François Simiand François Joseph Charles Simiand (18 April 1873 – 13 April 1935) was a French sociologist and economist best known as a participant in the Année Sociologique. As a member of the French Historical School of economics, Simiand predicated a rig ...

Utopian economics

William Godwin William Godwin (3 March 1756 – 7 April 1836) was an English journalist, political philosopher and novelist. He is considered one of the first exponents of utilitarianism and the first modern proponent of anarchism. Godwin is most famous for ...

Charles Fourier François Marie Charles Fourier (;; 7 April 1772 – 10 October 1837) was a French philosopher, an influential early socialist thinker and one of the founders of utopian socialism. Some of Fourier's social and moral views, held to be radical in ...

Robert Owen Robert Owen (; 14 May 1771 – 17 November 1858) was a Welsh textile manufacturer, philanthropist and social reformer, and a founder of utopian socialism and the cooperative movement. He strove to improve factory working conditions, promoted e ...

* Saint-Simon *

Josiah Warren Josiah Warren (; 1798–1874) was an American utopian socialist, American individualist anarchist, individualist philosopher, polymath, social reformer, inventor, musician, printer and author. He is regarded by anarchist historians like James ...

Georgist economics

Georgism or geoism is an economic philosophy proposing that both individual and national economic outcomes would be improved by the utilization of

economic rent In economics, economic rent is any payment (in the context of a market transaction) to the owner of a factor of production in excess of the cost needed to bring that factor into production. In classical economics, economic rent is any payment m ...

resulting from control over land and natural resources through levies such as a

land value tax A land value tax (LVT) is a levy on the value of land (economics), land without regard to buildings, personal property and other land improvement, improvements. It is also known as a location value tax, a point valuation tax, a site valuation ta ...

. *

Harry Gunnison Brown Harry Gunnison Brown (May 7, 1880– March 11, 1975) was a Georgist economist teaching at Yale in the early 20th century. Paul Samuelson named Brown in a list of "American saints in economics" that included only 6 other economists born after 1860 ...

Raymond Crotty Raymond Dominick Crotty (22 January 1925 – 1 January 1994) was an Irish economist, writer, academic and farmer, who was known for his opposition to Ireland's membership of the European Union. In 1987, he mounted a successful legal challenge in ...

Ottmar Edenhofer Ottmar Georg Edenhofer (born 8 July 1961) is a German economist who is regarded as one of the world's leading experts on climate change policy, environmental and energy policy, and energy economics. His work has been heavily cited. Edenhofer curr ...

Fred Foldvary Fred Emanuel Foldvary (May 11, 1946 – June 5, 2021) was a lecturer in economics at San Jose State University, California, and a research fellow at The Independent Institute. He previously taught at Santa Clara University and other colleges. He w ...

Mason Gaffney Merrill Mason Gaffney (October 18, 1923 – July 16, 2020) was an American economist and a major critic of Neoclassical economics from a Georgist point of view. Gaffney first read Henry George's masterwork ''Progress and Poverty'' as a high schoo ...

Max Hirsch (economist) Maximilian Hirsch (21 September 1852? – 4 March 1909) was a German-born businessman and economist who settled in Melbourne, Australia, where he became the recognized intellectual leader of the Australian Georgist movement and, briefly, a member ...

Wolf Ladejinsky Wolf Isaac Ladejinsky (March 15, 1899 – July 3, 1975) was an American Georgist agricultural economist and researcher, serving first in the United States Department of Agriculture, then the Ford Foundation and later the World Bank. He was a key ...

Philippe Legrain Philippe Legrain is a British political economist and writer. He specializes in global and European economic issues, notably globalisation, migration, the post-crisis world and the euro. A visiting senior fellow at the London School of Economi ...

Donald Shoup Donald Curran Shoup (born August 24, 1938) is an American engineer and professor in urban planning. He is a research professor of urban planning at University of California, Los Angeles and a noted Georgist economist. His 2005 book ''The High Cos ...

Nicolaus Tideman Thorwald Nicolaus Tideman (, not ; born August 11, 1943 in Chicago, Illinois) is a Georgist economist and professor at Virginia Tech. He received his Bachelor of Arts in economics and mathematics from Reed College in 1965 and his PhD in economics ...

Ricardian socialism

Ricardian socialism is a branch of early 19th century classical economic thought based on the theory that labor is the source of all wealth and exchange value, and rent, profit and interest represent distortions to a free market. The pre-Marxian theories of capitalist exploitation they developed are widely regarded as having been heavily influenced by the works of

, and favoured collective ownership of the

means of production The means of production is a term which describes land, labor and capital that can be used to produce products (such as goods or services); however, the term can also refer to anything that is used to produce products. It can also be used as an ...

. *

John Francis Bray John Francis Bray (26 June 1809 – 1 February 1897) was a radical, chartist, writer on socialist economics, and activist in both Britain and his native America in the 19th century. He was hailed in later life as the "Benjamin Franklin" of Ame ...

* John Gray * Charles Hall *

Thomas Hodgskin Thomas Hodgskin (12 December 1787 – 21 August 1869) was an English socialist writer on political economy, critic of capitalism and defender of free trade and early trade unions. In the late 19th and early 20th centuries, the term ''socialist ...

* William Thompson

Marxian economics

Marxian economics descended from the work of

and

Friedrich Engels Friedrich Engels ( ,"Engels"
'' labor theory of value The labor theory of value (LTV) is a theory of value that argues that the economic value of a good or service is determined by the total amount of " socially necessary labor" required to produce it. The LTV is usually associated with Marxian e ...

and what Marx considered to be the exploitation of labour by capital. Thus, in Marxian economics, the labour theory of value is a method for measuring the exploitation of labour in a capitalist society rather than simply a theory of price. Roemer, J.E. (1987). "Marxian Value Analysis". Mandel, Ernest (1987). "Marx, Karl Heinrich". *

David Harvey David W. Harvey (born 31 October 1935) is a British-born Marxist economic geographer, podcaster and Distinguished Professor of anthropology and geography at the Graduate Center of the City University of New York (CUNY). He received his PhD ...

Eduard Bernstein Eduard Bernstein (; 6 January 1850 – 18 December 1932) was a German social democratic Marxist theorist and politician. A member of the Social Democratic Party of Germany (SPD), Bernstein had held close association to Karl Marx and Friedric ...

Grigory Feldman Grigory Alexandrovich Feldman'ru'' (russian: Григорий Александрович Фельдман; 1884–1958) was a mathematician and economist from the Soviet Union. He qualified as an electrical engineer and joined the State Planning C ...

Rosa Luxemburg Rosa Luxemburg (; ; pl, Róża Luksemburg or ; 5 March 1871 – 15 January 1919) was a Polish and naturalised-German revolutionary socialist, Marxist philosopher and anti-war activist. Successively, she was a member of the Proletariat party, ...

Richard D. Wolff Richard David Wolff (born April 1, 1942) is an American Marxian economist known for his work on economic methodology and class analysis. He is professor emeritus of economics at the University of Massachusetts Amherst and a visiting professor ...

Rudolf Hilferding Rudolf Hilferding (10 August 1877 – 11 February 1941) was an Austrian-born Marxism, Marxist economist, Socialism, socialist theorist,International Institute of Social History, ''Rodolf Hilferding Papers''. http://www.iisg.nl/archives/en/files ...

Karl Kautsky Karl Johann Kautsky (; ; 16 October 1854 – 17 October 1938) was a Czech-Austrian philosopher, journalist, and Marxist theorist. Kautsky was one of the most authoritative promulgators of orthodox Marxism after the death of Friedrich Engels in ...

Nikolai Bukharin Nikolai Ivanovich Bukharin (russian: Никола́й Ива́нович Буха́рин) ( – 15 March 1938) was a Bolshevik revolutionary, Soviet politician, Marxist philosopher and economist and prolific author on revolutionary theory. ...

Nobuo Okishio was a Japanese Marxian economist and emeritus professor of Kobe University. In 1979, he was elected President of the Japan Association of Economics and Econometrics, which is now called Japanese Economic Association. Okishio studied mathematica ...

Paul Sweezy Paul Marlor Sweezy (April 10, 1910 – February 27, 2004) was a Marxist economist, political activist, publisher, and founding editor of the long-running magazine ''Monthly Review''. He is best remembered for his contributions to economic theory ...

Samir Amin Samir Amin ( ar, سمير أمين) (3 September 1931 – 12 August 2018) was an Egyptian-French Marxian economist, political scientist and world-systems analyst. He is noted for his introduction of the term Eurocentrism in 1988 and considered ...

Vladimir Lenin Vladimir Ilyich Ulyanov. ( 1870 – 21 January 1924), better known as Vladimir Lenin,. was a Russian revolutionary, politician, and political theorist. He served as the first and founding head of government of Soviet Russia from 1917 to 19 ...

Yevgeni Preobrazhensky Yevgeni Alekseyevich Preobrazhensky ( rus, Евге́ний Алексе́евич Преображе́нский, p=jɪvˈɡʲenʲɪj ɐlʲɪˈksʲejɪvʲɪt͡ɕ prʲɪəbrɐˈʐɛnskʲɪj; 1886–1937) was a Russian revolutionary, Soviet economi ...

Neo-Marxian economics

* David Gordon * Samuel Bowles *

Paul A. Baran Paul Alexander Baran (; 25 August 1909 – 26 March 1964) was an American Marxist economist. In 1951 Baran was promoted to full professor at Stanford University and Baran was the only tenured Marxian economist in the United States until his ...

Adam Przeworski Adam Przeworski (; born May 5, 1940) is a Polish-American professor of political science specializing in comparative politics. He is Carroll and Milton Professor Emeritus in the Department of Politics of New York University. He is a scholar of dem ...

Henryk Grossman Henryk Grossman (alternative spelling: ''Henryk Grossmann''; 14 April 1881 – 24 November 1950) was a Polish economist, historian, and Marxist revolutionary active in both Poland and Germany. Grossman's key contribution to political-economic t ...

State socialism

Henri de Saint-Simon Claude Henri de Rouvroy, comte de Saint-Simon (17 October 1760 – 19 May 1825), often referred to as Henri de Saint-Simon (), was a French political, economic and socialist theorist and businessman whose thought had a substantial influence on p ...

Ferdinand Lassalle Ferdinand Lassalle (; 11 April 1825 – 31 August 1864) was a Prussian-German jurist, philosopher, socialist and political activist best remembered as the initiator of the social democratic movement in Germany. "Lassalle was the first man in Ger ...

Johann Karl Rodbertus Johann Karl Rodbertus (August 12, 1805, Greifswald, Swedish Pomerania – December 6, 1875, Jagetzow), also known as Karl Rodbertus-Jagetzow, was a German economist and socialist and a leading member of the ''Linkes Zentrum'' (centre-left) in ...

Fabian Society The Fabian Society is a British socialist organisation whose purpose is to advance the principles of social democracy and democratic socialism via gradualist and reformist effort in democracies, rather than by revolutionary overthrow. The Fa ...

Anarchist economics

Anarchist economics comprises a set of theories which seek to outline modes of production and exchange not governed by coercive social institutions: *

Mutualists Mutualism describes the ecological Biological interaction, interaction between two or more species where each species has a net benefit. Mutualism is a common type of ecological interaction. Prominent examples include most vascular plants engag ...

advocate market socialism. *

Collectivist anarchist Collectivist anarchism, also called anarchist collectivism and anarcho-collectivism, Buckley, A. M. (2011). ''Anarchism''. Essential Libraryp. 97 "Collectivist anarchism, also called anarcho-collectivism, arose after mutualism." . is an anarchis ...

s advocate

workers cooperative A worker cooperative is a cooperative owned and self-managed by its workers. This control may mean a firm where every worker-owner participates in decision-making in a democratic fashion, or it may refer to one in which management is elected by ...

s and salaries based on the amount of time contributed to production. *

Anarcho-communists Anarcho-communism, also known as anarchist communism, (or, colloquially, ''ancom'' or ''ancomm'') is a political philosophy and anarchist school of thought that advocates communism. It calls for the abolition of private property but retains res ...

advocate a direct transition from capitalism to

libertarian communism Anarcho-communism, also known as anarchist communism, (or, colloquially, ''ancom'' or ''ancomm'') is a political philosophy and anarchist school of thought that advocates communism. It calls for the abolition of private property but retains r ...

and a

gift economy A gift economy or gift culture is a system of exchange where valuables are not sold, but rather given without an explicit agreement for immediate or future rewards. Social norms and customs govern giving a gift in a gift culture; although there ...

with

direct Direct may refer to: Mathematics * Directed set, in order theory * Direct limit of (pre), sheaves * Direct sum of modules, a construction in abstract algebra which combines several vector spaces Computing * Direct access (disambiguation), a ...

communal democracy. *

Anarcho-syndicalist Anarcho-syndicalism is a political philosophy and anarchist school of thought that views revolutionary industrial unionism or syndicalism as a method for workers in capitalist society to gain control of an economy and thus control influence in b ...

s advocate worker's

direct action Direct action originated as a political activist term for economic and political acts in which the actors use their power (e.g. economic or physical) to directly reach certain goals of interest, in contrast to those actions that appeal to oth ...

and the

general strike A general strike refers to a strike action in which participants cease all economic activity, such as working, to strengthen the bargaining position of a trade union or achieve a common social or political goal. They are organised by large co ...

. Thinkers associated with anarchist economics include: *

Pierre-Joseph Proudhon Pierre-Joseph Proudhon (, , ; 15 January 1809, Besançon – 19 January 1865, Paris) was a French socialist,Landauer, Carl; Landauer, Hilde Stein; Valkenier, Elizabeth Kridl (1979) 959 "The Three Anticapitalistic Movements". ''European Socia ...

Peter Kropotkin Pyotr Alexeyevich Kropotkin (; russian: link=no, Пётр Алексе́евич Кропо́ткин ; 9 December 1842 – 8 February 1921) was a Russian anarchist, socialist, revolutionary, historian, scientist, philosopher, and activis ...

Mikhail Bakunin Mikhail Alexandrovich Bakunin (; 1814–1876) was a Russian revolutionary anarchist, socialist and founder of collectivist anarchism. He is considered among the most influential figures of anarchism and a major founder of the revolutionary ...

Distributism

Distributism is an economic philosophy that was originally formulated in the late 19th century and early 20th century by Catholic thinkers to reflect the teachings of Pope Leo XIII's encyclical ''Rerum Novarum'' and Pope Pius's XI encyclical ''Quadragesimo Anno''. It seeks to pursue a third way between capitalism and socialism, desiring to order society according to Christian principles of justice while still preserving private property. * G. K. Chesterton *

Hilaire Belloc Joseph Hilaire Pierre René Belloc (, ; 27 July 187016 July 1953) was a Franco-English writer and historian of the early twentieth century. Belloc was also an orator, poet, sailor, satirist, writer of letters, soldier, and political activist. H ...

Institutional economics

Institutional economics focuses on understanding the role of the evolutionary process and the role of institutions in shaping economic behaviour. Its original focus lay in

Thorstein Veblen Thorstein Bunde Veblen (July 30, 1857 – August 3, 1929) was a Norwegian-American economist and sociologist who, during his lifetime, emerged as a well-known critic of capitalism. In his best-known book, ''The Theory of the Leisure Class'' ...

's instinct-oriented dichotomy between technology on the one side and the "ceremonial" sphere of society on the other. Its name and core elements trace back to a 1919 ''

American Economic Review The ''American Economic Review'' is a monthly peer-reviewed academic journal published by the American Economic Association. First published in 1911, it is considered one of the most prestigious and highly distinguished journals in the field of ec ...

'' article by

Walton H. Hamilton Walton Hale Hamilton (October 30, 1881 – October 27, 1958) was an American law professor who taught at Yale Law School (1928–1948), although he was an economist, not a lawyer. In 1919, Hamilton coined the term " institutional economics". Li ...

. *

Gunnar Myrdal Karl Gunnar Myrdal ( ; ; 6 December 1898 – 17 May 1987) was a Swedish economist and sociologist. In 1974, he received the Nobel Memorial Prize in Economic Sciences along with Friedrich Hayek for "their pioneering work in the theory of money a ...

* John Rogers Commons *

Wesley Clair Mitchell Wesley Clair Mitchell (August 5, 1874 – October 29, 1948) was an American economist known for his empirical work on business cycles and for guiding the National Bureau of Economic Research in its first decades. Mitchell was referred to as Thor ...

John Maurice Clark John Maurice Clark (1884–1963) was an American economist whose work combined the rigor of traditional economic analysis with an "institutionalist" attitude. Clark was a pioneer in developing the notion of workable competition and the theore ...

* Robert A. Brady *

Clarence Edwin Ayres Clarence Edwin Ayres (May 6, 1891 – July 24, 1972) was the principal thinker in the Texas school of institutional economics during the middle of the 20th century. Life Ayres was born in Lowell, Massachusetts, the son of a Baptist minister. He g ...

Romesh Dutt Romesh Chunder Dutt ( bn, রমেশচন্দ্র দত্ত; 13 August 1848 – 30 November 1909) was an Indian civil servant, economic history, economic historian, writer and translator of ''Ramayana'' and ''Mahabharata''. Dutt is c ...

John Kenneth Galbraith John Kenneth Galbraith (October 15, 1908 – April 29, 2006), also known as Ken Galbraith, was a Canadian-American economist, diplomat, public official, and intellectual. His books on economic topics were bestsellers from the 1950s through t ...

Geoffrey Hodgson Geoffrey Martin Hodgson (born 28 July 1946, Watford) is Emeritus Professor in Management at the London campus of Loughborough University, and also the editor-in-chief of the ''Journal of Institutional Economics.'' Hodgson is recognised as one o ...

Ha-Joon Chang Ha-Joon Chang (; ; born 7 October 1963) is a South Korean institutional economist, specialising in development economics. Chang is the author of several widely discussed policy books, most notably ''Kicking Away the Ladder: Development Strateg ...

Neoclassical economics

Neoclassical economics is the dominant form of economics used today and has the highest amount of adherents among economists. It is often referred to by its critics as Orthodox Economics. The more specific definition this approach implies was captured by

in a 1932 essay: "the science which studies human behavior as a relation between scarce means having alternative uses." The definition of scarcity is that available resources are insufficient to satisfy all wants and needs; if there is no scarcity and no alternative uses of available resources, then there is no

. *

William Stanley Jevons William Stanley Jevons (; 1 September 183513 August 1882) was an English economist and logician. Irving Fisher described Jevons's book ''A General Mathematical Theory of Political Economy'' (1862) as the start of the mathematical method in ec ...

Francis Ysidro Edgeworth Francis Ysidro Edgeworth (8 February 1845 – 13 February 1926) was an Anglo-Irish philosopher and political economist who made significant contributions to the methods of statistics during the 1880s. From 1891 onward, he was appointed the ...

Alfred Marshall Alfred Marshall (26 July 1842 – 13 July 1924) was an English economist, and was one of the most influential economists of his time. His book '' Principles of Economics'' (1890) was the dominant economic textbook in England for many years. I ...

John Bates Clark John Bates Clark (January 26, 1847 – March 21, 1938) was an American neoclassical economist. He was one of the pioneers of the marginalist revolution and opponent to the Institutionalist school of economics, and spent most of his career as ...

Irving Fisher Irving Fisher (February 27, 1867 – April 29, 1947) was an American economist, statistician, inventor, eugenicist and progressive social campaigner. He was one of the earliest American neoclassical economists, though his later work on debt def ...

Knut Wicksell Johan Gustaf Knut Wicksell (December 20, 1851 – May 3, 1926) was a leading Swedish economist of the Stockholm school. His economic contributions would influence both the Keynesian and Austrian schools of economic thought. He was married to th ...

Lausanne School

The Lausanne School of economics is an extension of the neoclassical school of economic thought, named after the

University of Lausanne The University of Lausanne (UNIL; french: links=no, Université de Lausanne) in Lausanne, Switzerland was founded in 1537 as a school of Protestant theology, before being made a university in 1890. The university is the second oldest in Switzer ...

Switzerland ). Swiss law does not designate a ''capital'' as such, but the federal parliament and government are installed in Bern, while other federal institutions, such as the federal courts, are in other cities (Bellinzona, Lausanne, Luzern, Neuchâtel ...

. The school is primarily associated with

Léon Walras Marie-Esprit-Léon Walras (; 16 December 1834 – 5 January 1910) was a French mathematical economist and Georgist. He formulated the marginal theory of value (independently of William Stanley Jevons and Carl Menger) and pioneered the developmen ...

and

Vilfredo Pareto Vilfredo Federico Damaso Pareto ( , , , ; born Wilfried Fritz Pareto; 15 July 1848 – 19 August 1923) was an Italian polymath (civil engineer, sociologist, economist, political scientist, and philosopher). He made several important contribut ...

, both of whom held successive professorships in political economy at the university, in the latter half of the 19th century. Beginning with Walras, the school is credited with playing a central role in the development of

mathematical economics Mathematical economics is the application of mathematical methods to represent theories and analyze problems in economics. Often, these applied methods are beyond simple geometry, and may include differential and integral calculus, difference an ...

. For this reason, the school has also been referred to as the Mathematical School. A notable work of the Lausanne School is Walras’ development of the

general equilibrium theory In economics, general equilibrium theory attempts to explain the behavior of supply, demand, and prices in a whole economy with several or many interacting markets, by seeking to prove that the interaction of demand and supply will result in an ov ...

as a holistic means of analysing the economy, in contrast to partial equilibrium theory, which only analyses single markets in isolation. The theory shows how a general equilibrium is reached through the interaction between demand and supply in an economy consisting of multiple markets operating simultaneously. The Lausanne School is also largely credited with the foundation of

welfare economics Welfare economics is a branch of economics that uses microeconomic techniques to evaluate well-being (welfare) at the aggregate (economy-wide) level. Attempting to apply the principles of welfare economics gives rise to the field of public econ ...

, through which Pareto sought to measure the welfare of an economy. Contrary to

utilitarianism In ethical philosophy, utilitarianism is a family of normative ethical theories that prescribe actions that maximize happiness and well-being for all affected individuals. Although different varieties of utilitarianism admit different charact ...

, Pareto found that the welfare of an economy cannot be measured by aggregating the individual utilities of its inhabitants. Since individual utilities are subjective, their measurements may not be directly comparable. This led Pareto to conclude that if at least one person's utility increased, while nobody else was any worse off, then the welfare of the economy would increase. Conversely, if a majority of people experienced an increase in utility while at least one person was worse off, there could be no definitive conclusion about the welfare of the economy. These observations formed the basis of

Pareto efficiency Pareto efficiency or Pareto optimality is a situation where no action or allocation is available that makes one individual better off without making another worse off. The concept is named after Vilfredo Pareto (1848–1923), Italian civil engine ...

, which describes a situation or outcome in which nobody can be made better off without also making someone else worse off. Pareto efficiency is still widely used in contemporary welfare economics as well as

. *

Austrian School

Austrian economists advocate

methodological individualism In the social sciences, methodological individualism is the principle that subjective individual motivation explains social phenomena, rather than class or group dynamics which are illusory or artificial and therefore cannot truly explain marke ...

in interpreting economic developments, the

subjective theory of value The subjective theory of value is an economic theory which proposes the idea that the value of any good is not determined by the utility value of the object, nor by the cumulative value of components or labour needed to produce or manufacture it, ...

, that money is non-neutral, and emphasize the organizing power of the

price mechanism In economics, a price mechanism is the manner in which the profits of goods or services affects the supply and demand of goods and services, principally by the price elasticity of demand. A price mechanism affects both buyer and seller who nego ...

(see ''

Economic calculation debate The socialist calculation debate, sometimes known as the economic calculation debate, was a discourse on the subject of how a socialist economy would perform economic calculation given the absence of the law of value, money, financial prices for ...

'') and a ''

laissez faire ''Laissez-faire'' ( ; from french: laissez faire , ) is an economic system in which transactions between private groups of people are free from any form of economic interventionism (such as subsidies) deriving from special interest groups. A ...

'' approach to the economy. *

Carl Menger Carl Menger von Wolfensgrün (; ; 28 February 1840 – 26 February 1921) was an Austrian economist and the founder of the Austrian School of economics. Menger contributed to the development of the theories of marginalism and marginal utility ...

Eugen von Böhm-Bawerk Eugen Ritter von Böhm-Bawerk (; born Eugen Böhm, 12 February 185127 August 1914) was an Austrian economist who made important contributions to the development of the Austrian School of Economics and neoclassical economics. He served intermitten ...

Ludwig von Mises Ludwig Heinrich Edler von Mises (; 29 September 1881 – 10 October 1973) was an Austrian School economist, historian, logician, and Sociology, sociologist. Mises wrote and lectured extensively on the societal contributions of classical liberali ...

Friedrich Hayek Friedrich August von Hayek ( , ; 8 May 189923 March 1992), often referred to by his initials F. A. Hayek, was an Austrian–British economist, legal theorist and philosopher who is best known for his defense of classical liberalism. Haye ...

Friedrich von Wieser Friedrich Freiherr von Wieser (; 10 July 1851 – 22 July 1926) was an early (so-called "first generation") economist of the Austrian School of economics. Born in Vienna, the son of Privy Councillor Leopold von Wieser, a high official in the war m ...

Henry Hazlitt Henry Stuart Hazlitt (; November 28, 1894 – July 9, 1993) was an American journalist who wrote about business and economics for such publications as ''The Wall Street Journal'', ''The Nation'', ''The American Mercury'', ''Newsweek'', and '' ...

Frank Fetter Frank Albert Fetter (; March 8, 1863 – March 21, 1949) was an American economist of the Austrian School. Fetter's treatise, ''The Principles of Economics'', contributed to an increased American interest in the Austrian School, including the th ...

Israel Kirzner Israel Meir Kirzner (also Yisroel Mayer Kirzner ; born February 13, 1930) is a British-born American economist closely identified with the Austrian School. Early life and education The son of a well-known rabbi and Talmudist, Kirzner was born in ...

Murray Rothbard Murray Newton Rothbard (; March 2, 1926 – January 7, 1995) was an American economist of the Austrian School, economic historian, political theorist, and activist. Rothbard was a central figure in the 20th-century American libertarian m ...

Robert P. Murphy Robert Patrick Murphy (born May 23, 1976) is an American economist. Murphy is Research Assistant Professor with the Free Market Institute at Texas Tech University. He has been affiliated with Laffer Associates, the Pacific Research Institute, ...

Lew Rockwell Llewellyn Harrison Rockwell Jr. (born July 1, 1944) is an American author, editor, and political consultant. A libertarian and a self-professed anarcho-capitalist, he founded and is the chairman of the Mises Institute, a non-profit dedicated t ...

Peter Schiff Peter David Schiff (; born March 23, 1963) is an American stock broker, financial commentator, and radio personality. He is CEO and chief global strategist of Euro Pacific Capital Inc., a broker-dealer based in Westport, Connecticut. He is also ...

* Marc Faber *

Walter Block Walter Edward Block (born August 21, 1941) is an American Austrian School economist and anarcho-capitalist theorist. He currently holds the Harold E. Wirth Eminent Scholar Endowed Chair in Economics at the School of Business at Loyola Universit ...

Hans-Hermann Hoppe Hans-Hermann Hoppe (; ; born 2 September 1949) is a German-American economist of the Austrian School, philosopher and political theorist. He is Professor Emeritus of Economics at the University of Nevada, Las Vegas (UNLV), Senior Fellow of t ...

Jesús Huerta de Soto Jesús Huerta de Soto Ballester (born December 23, 1956) is a Spanish economist of the Austrian School. He is a professor in the Department of Applied Economics at King Juan Carlos University of Madrid, Spain and a Senior Fellow at the Mises Inst ...

Fritz Machlup Fritz Machlup (; ; December 15, 1902 – January 30, 1983) was an Austrian-American economist who was president of the International Economic Association from 1971–1974. He was one of the first economists to examine knowledge as an economic res ...

Stockholm School

The Stockholm School is a school of economic thought. It refers to a loosely organized group of Swedish economists that worked together, in Stockholm, Sweden primarily in the 1930s. The Stockholm School had—like John Maynard Keynes—come to the same conclusions in macroeconomics and the theories of demand and supply. Like Keynes, they were inspired by the works of Knut Wicksell, a Swedish economist active in the early years of the twentieth century. *

Bertil Ohlin Bertil Gotthard Ohlin () (23 April 1899 – 3 August 1979) was a Swedish economist and politician. He was a professor of economics at the Stockholm School of Economics from 1929 to 1965. He was also leader of the People's Party, a social-liberal ...

Keynesian economics

Keynesian economics has developed from the work of

John Maynard Keynes John Maynard Keynes, 1st Baron Keynes, ( ; 5 June 1883 – 21 April 1946), was an English economist whose ideas fundamentally changed the theory and practice of macroeconomics and the economic policies of governments. Originally trained in ...

and focused on macroeconomics in the short-run, particularly the rigidities caused when prices are fixed. It has two successors.

Post-Keynesian economics Post-Keynesian economics is a school of economic thought with its origins in ''The General Theory'' of John Maynard Keynes, with subsequent development influenced to a large degree by Michał Kalecki, Joan Robinson, Nicholas Kaldor, Sidney Wei ...

is an alternative school—one of the successors to the Keynesian tradition with a focus on

macroeconomics Macroeconomics (from the Greek prefix ''makro-'' meaning "large" + ''economics'') is a branch of economics dealing with performance, structure, behavior, and decision-making of an economy as a whole. For example, using interest rates, taxes, and ...

. They concentrate on macroeconomic rigidities and adjustment processes, and research micro foundations for their models based on real-life practices rather than simple optimizing models. Generally associated with

Cambridge, England Cambridge ( ) is a university city and the county town in Cambridgeshire, England. It is located on the River Cam approximately north of London. As of the 2021 United Kingdom census, the population of Cambridge was 145,700. Cambridge became ...

and the work of

Joan Robinson Joan Violet Robinson (''née'' Maurice; 31 October 1903 – 5 August 1983) was a British economist well known for her wide-ranging contributions to economic theory. She was a central figure in what became known as post-Keynesian economics. B ...

(see

New-Keynesian economics New Keynesian economics is a school of macroeconomics that strives to provide microeconomic foundations for Keynesian economics. It developed partly as a response to criticisms of Keynesian macroeconomics by adherents of new classical macroec ...

is the other school associated with developments in the Keynesian fashion. These researchers tend to share with other Neoclassical economists the emphasis on models based on micro foundations and optimizing behavior, but focus more narrowly on standard Keynesian themes such as price and wage rigidity. These are usually made to be endogenous features of these models, rather than simply assumed as in older style Keynesian ones (see

). *

Paul Krugman Paul Robin Krugman ( ; born February 28, 1953) is an American economist, who is Distinguished Professor of Economics at the Graduate Center of the City University of New York, and a columnist for ''The New York Times''. In 2008, Krugman was th ...

Paul Samuelson Paul Anthony Samuelson (May 15, 1915 – December 13, 2009) was an American economist who was the first American to win the Nobel Memorial Prize in Economic Sciences. When awarding the prize in 1970, the Swedish Royal Academies stated that he "h ...

*Peter Bofinger *Joseph Stiglitz *Nouriel Roubini *Stanley Fischer *Gregory Mankiw *Jason Furman *Huw Dixon

Chicago school

The Chicago School is a neoclassical school of economic thought associated with the work of the faculty at the University of Chicago, notable particularly in macroeconomics for developing monetarism as an alternative to Keynesianism and its influence on the use of rational expectations in macroeconomic modelling. *Frank Knight, Frank H. Knight *Jacob Viner *Milton Friedman *Thomas Sowell *George Stigler *Harry Markowitz *Merton Miller *Robert Lucas, Jr. *Eugene Fama *Myron Scholes *Gary Becker *Edward C. Prescott *James Heckman *Robert Z. Aliber

Carnegie School

*Herbert A. Simon *Richard Cyert *James March *Victor Vroom *Oliver E. Williamson *John Muth

Neo-Ricardianism

*Piero Sraffa *Luigi L. Pasinetti *Vladimir Karpovich Dmitriev

New institutional economics

New institutional economics is a perspective that attempts to extend economics by focusing on the sociology, social and legal Norm (sociology), norms and rules (which are institutions) that underlie economic activity and with analysis beyond earlier

and

.Malcolm Rutherford (2001). "Institutional Economics: Then and Now," ''Journal of Economic Perspectives'', 15(3), pp. 185-90
173-194
.
L. J. Alston, (2008). "new institutional economics," ''The New Palgrave Dictionary of Economics'', 2nd Edition
Abstract.
/ref> It can be seen as a broadening step to include aspects excluded in neoclassical economics. It rediscovers aspects of classical

. * Douglass North * Oliver E. Williamson * Ronald Coase * Daron Acemoglu * Steven N. S. Cheung

20th century schools

Notable schools or trends of thought in economics in the 20th century were as follows. These were advocated by well-defined groups of academics that became widely known: *

*Biological economics *Chicago school (economics), Chicago School *Constitutional economics *Ecological economics *Evolutionary economics *Free-market anarchism *Freiburg School *Freiwirtschaft *Georgism *

*Marxian economics, Marxian (Marxist) and neo-Marxian economics *Neo-Ricardianism *New classical macroeconomics *New Keynesian economics *

*Public Choice Theory, Public Choice school *School of Lausanne *Stockholm school (economics), Stockholm school In the late 20th century, areas of study that produced change in economic thinking were: risk-based (rather than price-based models), imperfect economic actors, and treating economics as a biology, biological science (based on evolutionary norms rather than abstract exchange). The study of risk was influential, in viewing variations in price over time as more important than actual price. This applied particularly to financial economics, where risk/return tradeoffs were the crucial decisions to be made. An important area of growth was the study of information and decision. Examples of this school included the work of Joseph Stiglitz. Problems of asymmetric information and moral hazard, both based around information economics, profoundly affected modern economic dilemmas like executive stock options, insurance markets, and Third World, Third-World debt relief. Finally, there were a series of economic ideas rooted in the conception of economics as a branch of biology, including the idea that energy relationships, rather than price relationships, determine economic structure. The use of fractal geometry to create economic models (see Energy Economics). In its infancy the application of non-linear dynamics to economic theory, as well as the application of evolutionary psychology explored the processes of valuation and the persistence of non-equilibrium conditions. The most visible work was in the area of applying fractals to market analysis, particularly arbitrage (see Complexity economics). Another infant branch of economics was neuroeconomics. The latter combines neuroscience, economics, and psychology to study how we make choices.

Notes

References

Sources

* * Spiegel, Henry William. 1991. ''The Growth of Economic Thought.'' Durham & London: Duke University Press. * John Eatwell, Murray Milgate, and Peter Newman, ed. (1987). ''The New Palgrave: A Dictionary of Economics'', v. 4, Appendix IV, History of Economic Thought and Doctrine, "Schools of Thought," p. 980 (list of 23 schools)

External links

History of Economic Thought and Critical Perspectives (NSSR)
{{Authority control Schools of economic thought, History of economic thought,