A comparison of the ancient and medieval economic ideas to the mercantilist economic ideas

They met in either seasonal trade fairs or they traded in an ongoing basis. Most survive to the present day as self-consciously dissident schools, but with greatly diminished size and influence relative to mainstream economics. A definition that captures much of modern economics is that of Lionel Robbins in a essay: Modern mainstream economics builds primarily on neoclassical economicswhich began to develop in the late 19th century.

Georgescu-Roegen reintroduced into economics, the concept of entropy from thermodynamics as distinguished from what, in his view, is the mechanistic foundation of neoclassical economics drawn from Newtonian physics and did foundational work which later developed into evolutionary economics.

Such developments, however, were fiercely contested with the result that economic actors turned to agreements that were less exposed to censure than straightforward loans, such as bills of exchange, rentes annuities and various kinds of risk-sharing partnership chapter 8.

Mercantilism was a doctrine of state intervention in economic life, but of state interventionism of a special pattern and with some special objectives. But this had been practically universal doctrine from classical antiquity on, and therefore did not distinguish mercantilist from premercantilist thought.

A Study in Mercantilism. Studies in Economic Theory and Policy. The British public was jealous of the exercise of power by the executive branch of the national government, of administration conducted by the central authorities in London instead of locally, and of agents of the central government with powers of inspection and arrest.

Wars could be embarked upon for mercantilist reasons. The productive class produced 5, million livres of output; it did this with the aid of land rented from the proprietors, an investment of 2, million livres avarices annuelles in seeding, cultivation, etc.

Economic history of Europe

Wages and interest rates could be subjected to legal maxima in the belief that this would improve the national competitive position in foreign trade.

The Black Death touched every aspect of life, hastening a process of social, economic, and cultural transformation already underway Turgot went beyond Quesnay to declare investment to be important in industry and commerce as well as in agriculture and to suggest how it gets allocated among alternative uses in keeping with prospective returns.

It is to be noted that neither the mercantilists nor the classical school distinguished clearly and systematically between short-run and long-run effects, and that insofar as one can judge from the historical context and the implications of their writing, the mercantilists were as a rule thinking in terms of short-run effects and the classical school in terms of long-run effects.

Most writers, however, accepted the right of public authorities to regulate or fix prices in the common interest. Viking raids and the Crusader invasions of the Middle East led to the diffusion of and refinement of technology instrumental to overseas travel. Lorenzo Ridolfi on the Monte Comune Toronto, A plague like the Black Death killed its victims in one locality in a matter of days or even hours, reducing the population of some areas by half as many survivors fled.

Some events stand out as significant for structural economic change, not least the dramatic intervention of the Black Death in the midth century, but also wars, famines, and the discovery of new international trade routes.

Routledge and Kegan Paul, At least for the later mercantilists emphasis tended to shift from the store-of-wealth to the circulation function of the precious metals. Medieval conceptions of money were strongly influenced by Aristotle, who viewed money a measure of value and a sterile medium of exchange.

Economic Thought

In lieu of an abstract, here is a brief excerpt of the content: The intellectual influence of the physiocrats, great in the s, underwent a rapid decline after Leading the trade in Mediterranean Europe were traders from the port cities of Genoa and Venice.

Weber, Wilhelm Wirtschaftsethik am Vorabend des Liberalismus: Medieval society was one of gross material inequalities, and most writers considered avarice an impediment to salvation, although they also maintained that the moral risks associated with wealth could be obviated by liberality. By the 14th century, the Hanseatic League held a near-monopoly on trade in the Baltic, especially with Novgorod and Scandinavia.

Important also was the widespread revulsion among intellectuals against the past record of almost continuous war and preparation for war, for which mercantilism was largely blamed. It needs to call, therefore, on the resources of all the major social disciplines.

Traditional bonds of kinship, village and even religion were broken and the horrors of death, flight, and failed expectations. Quesnay and most of his disciples confined this role to agriculture.

When great emphasis was placed, in the economic sphere, as it logically was in the sphere of power rivalries, on an inherent conflict of interests, this had grave consequences both for economic policy and for international politics.

The proprietary class, made up of landed proprietors and those supported by proprietary income, comprised one-fourth the population, as did the sterile, or artisan, class, which included the balance of the population.


Production techniques remained attached to medieval traditions and produced low yields. But when paper money was introduced, it became more difficult to reconcile emphasis on circulation with continuing stress on the importance of the precious metals and on a favorable balance of trade as the means of acquiring them.

Interest in physiocracy did not completely disappear. Money functioned as a store of value when hoarded but the sterility doctrine meant that few theorists viewed money as a commodity whose value could fluctuate like that of any other chapter 3.

Schools of economic thought

From this it followed that this surplus should be taxed immediately; then the cost of collecting revenue for the support of the state, together with the adverse side effects of taxation, would be minimized. Cambridge University Press, — Heterodox schools 20th and 21st centuries [ edit ] In the late 19th century, a number of heterodox schools contended with the neoclassical school that arose following the marginal revolution.

Some international trade existed for luxury goods such as silk, papyrus, and silver; it was handled by foreign merchants such as the Radanites.1 ECONOMIC IDEAS FROM 1 ANCIENT GREECE Many modern economic concepts can be found in ancient Greek thought as the philosophers wrestled with fundamental economic issues.

Although Greece did. History of Economic ideas. STUDY. PLAY (10 points) Economists use simplified models to depict a more complex reality. Discuss the role of simplifying and unrealistic assumptions in economic models.

Do such assumptions enhance or detract from a model's usefulness? The mercantilist believed that all raw materials in a country. Ancient and Medieval Economic Ideas and Concepts of Social Justice. Edited by S. Todd Lowry and Barry Gordon. Leiden: Brill, pp. Economists have typically, though not universally, passed over the history of ancient and medieval economies and the ideas produced therein in silence.

There are. The Rise Of A Mercantilist Economic System History Essay. Print Reference this. Disclaimer: The rise of a mercantilist economic system in Europe forged a unified relationship between government and its people by superseding feudalism and developing a merchant class that bridged the gap between the peasant and ruling classes.

Britain. Medieval economic thought is a daunting subject. Not only has it generated a voluminous modern literature but the primary sources on which the scholarship is based — sermons, pastoral care manuals, legal opinions and technical (and usually unedited) commentaries on the theological, philosophical and juridical texts of the medieval university.

A Comparison of the Ancient and Medieval Economic Ideas to the Mercantilist Economic Ideas PAGES 2. WORDS View Full Essay. More essays like this: Not sure what I'd do without @Kibin - Alfredo Alvarez, student @ Miami University.

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A comparison of the ancient and medieval economic ideas to the mercantilist economic ideas
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