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Merits and demerits of micro and macro economics
Case studies on principles of microeconomic
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The article written by Donald N. McCloskey has dramatically changed my attitude to the usefulness of knowledge from the field of economic history. The phrase from the article: “History is a stimulus to the economic imagination, defining and stretching the limits of economic craft...” took my thoughts away from everyday casual duties and made me to spend several hours thinking about it. I have reminded myself several historical events, the details of which I know from the course of economic history, I tried to apply micro and macro based theories to these events, interestingly, history supports economic ideas...or, should I state the other way round?
The article starts by mentioning well-known Adam Smith, Marx, Marshall, Keynes, Schumpeter and others, those economists based their theories and policies on stylised facts from economic history and were deeply historical in their studies. Unfortunately, nowadays thinking of majority contemporary economists is based only on micro-, macroeconomics, econometrics and statistics. The majority of contemporary economists form their studies only by observing resent events, trying to forecast the future only from analytical and mathematical bases. It was written that almost all contemporary economists undervalue the history of both high and low income countries, however these information can make a seminal contribution to explaining, understanding and predicting. Further this essay is going to state why past is important for economics.
Being frank, it is true that the majority of modern economists do not believe into the power of past economic history... this idea is supported by the author of the article who provides examples of contemporary economic schools of England, Germany and America, ...
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...hat some of the best minds in economics recognise the importance of economic history... Probably, the time has come for me to recognise the importance of the influence of past events for predicting and understanding economics deeper. After reading the article, I have realised and approved for myself that economic history as well as history is not only about the past, it is about the present and the future. I had realised that one of purposes of economic history is not only about telling who we are, what we have gone through but also it is about broadening our conception of the possible.” From this moment and forever my personal answer to the question stated at the beginning of the article would definitely be “YES”! Our past has usefulness not only to the economics, but also to politics, international relations and to the personal life of each member of the society.
Despite its size, only 190 pages, the authors address the basic concepts of economics while also applying those politically and for personal finance decision making. Those basic concepts include scarcity, gains from trade, marginal decision-making, profit management, income growth, and Adam Smith’s invisible hand theories are all discussed within the first part of the book; allowing readers to understanding the concepts, Gwartney applies the same concepts to the creation of wealth and the importance of competition, private property, open trade, monetary stability, and lower taxes. This book educates its audience by evaluating our economy and government mechanisms without the overpowering display of charts, formulas, and graphs; which you would typically see in a textbook allow...
Adam Smith, David Ricardo and Thomas Malthus have all greatly influenced how people thought about modern economics, especially in areas relating to markets, in terms of the economy and whether certain things affected population rates. In this essay I will cover each of the three topic areas and how each economist interpreted these areas in order to explain why certain phenomena occur within British economics, most of which are still widely accepted today.
Gaynor Ellis, Elisabeth, and Anthony Esler. ""New Economic Thinking"" World History: The Modern Era. Prentice Hall. 186. Print.
In “The Time Machine” by H.G. Wells, the author portrays, for the most part, that the choices humans make now cannot drastically change the outcomes in the far future. The obvious representation of social and political classes, even as the time traveler goes 800,000 years into the future, describes this more. The fact that, even 800,000 years later, there are still apparent classes that can determine an individual’s worth guides the reader towards the conclusion that even if an individual were to change the present, it would be impossible to avoid the very same mistake from being repeated in the future.
However, economics is relative to everyone’s life. We can still feel the wound of financial crisis up to today. It’s useful for everyone to learn something about economics.
Institutionalists viewed Economic theory and the judgment of economy's performance to be based not on cons...
Second, the historian must place himself within the existing historical debate on the topic at hand, and state (if not so formulaically as is presented here) what he intends to add to or correct about the existing discussion, how he intends to do that (through examining new sources, asking new questions, or shifting the emphasis of pre-existing explanations), and whether he’s going to leave out some parts of the story. This fulfills the qualities of good history by alerting readers to the author’s bias in comparison with the biases of other schools of scholarship on the topic, and shows that the author is confident enough in his arguments to hold them up to other interpreta...
The dominant figure in British economics of the late nineteenth and early twentieth centuries, who’s Principles ... still, has the power to fascinate and excite the reader. Though he wrote infrequently, his teaching at Cambridge was a major source of influence on his contemporaries. An able mathematician, he sought to express himself in the simplest lan...
Paul A. Samuelson, one of the men who made Harvard’s reputation, made various contributions to modern economics. Samuelson brought numerous theories to the table, showing that math is an effective and necessary component of understanding economics. Furthermore, he discovered a new obstacle regarding inflation, known as “cost-push” inflation. But most importantly, Paul A. Samuelson has shown that economic theories can be timeless, however their implementation evolves around the current economic circumstances that are in play.
My research in Classical Economics and Keynesian Economics has given me the opportunity to form an opinion on this greatly debated topic in economics. After researching this topic to great lengths, I have determined the Keynesian Economics far exceeds greatness for America compared to that of Classical Economics. I will begin my paper by first addressing my understanding of both economic theories, I will then compare and contrast both theories, and end my paper with my opinions on why I believe Keynesian Economics is what is best for America. Classical Economics is a theory that suggests that by leaving the free market alone without human intervention equilibrium will be obtained. This theory was the first school of thought for economists, and one of the major theorists and founders of Classical Economics was Adam Smith.
Economics is probably the science that arguably has had the most impact in today’s times. In fact it can barely be called a science in a strict sense, since human behavior is not governed by laws of nature unlike other non living objects, which makes the prediction and forecasting stock prices, economic conditions all the more difficult. In recent decades economists have tried to give a more structured and mathematical explanation to their theories concerning how human beings make their decisions. However these theories have come under immense criticism as they don’t hold true in real time. In reality, human beings rarely behave rationally which is the basic assumption in many of the economic theories; rather we make a lot of our decisions based on our intuition and limited knowledge available to us. When the financial crisis of 2008 came upon us, a lot of questions were raised on the apparent predictive abilities of the various economic theories. Merely 12 economists were able to foresee the massive crisis which now shows signs of deepening into a double dip recession.
History should be studied for several somewhat obvious reasons. It provides us with the means
Millions of people have gone great lengths to record every part of the past. We may not know much about the future but we have more than enough information about the past. The knowledge about our past has helped us in many ways. Historians, teachers, doctors, students, lawyers and many more have relied on history books and researches on significant events in history to prove their point. The question why history matters has been asked many times. It has been asked by students, teachers and parents sometimes. Some people may see this question as ridiculously easy but I see it as one of the hardest ones yet asked. Does History matter? This question can’t be answered in one sentence. Try asking people why history is important and the answer is usually “It’s to learn from our mistakes”. It’s not right to summarize over 4 billion years of history in one sentence. This question can be easily answered in numerous ways. I would side with the numerous historians who say history holds huge significance. History is older than any object or human being we have ever come across. History has proved itself significance with the help of human beings. We, the people have used history and made it one the most significant thing in present. History holds itself significant because it has helped us understand human behaviors, change in societies, mistakes influential figures have made in past, the past events occurrence and many other reasons. The most important reason is that history protects us by preparing us for the incoming. This essay would analyze the importance of history today by using the past events for evidence.
The crucial importance and relevance of economics related disciplines to the modern world have led me to want to pursue the study of these social sciences at a higher level. My study of Economics has shown me the fundamental part it plays in our lives and I would like to approach it with an open mind - interested but not yet fully informed.
... for knowing history is to learn from the past. And this is the most significant one. There is a saying that “Study the past if you would define the future”. If we have same circumstance which occurred in the past, we know how to deal with that because we learned it from history. Let’s say that the economic in Mongolia is decreasing. We had this experience in the past. We learned from the history that what action would make the situation worse. Thus, we try to avoid those actions and find other solutions or use the method we used to deal with situation in the past.