Evolution Of Economic Thought: Mercantilism To Macro

Explore economic theories from Mercantilism to Modern Macroeconomics and see how ideas shaped today's economy

What you'll learn

Explain the fundamental principles of Mercantilism and its impact on colonial trade policies.

Analyze classical economists from Adam Smith to David Ricardo and evaluate their theories on value and trade.

Compare the Marginal Revolution contributions by Jevons, Menger, and Walras and their influence on modern microeconomics.

Assess Keynesian and monetarist macroeconomic models, including IS-LM, rational expectations, and New Keynesian frameworks.

Requirements

Basic understanding of micro and macroeconomic principles, familiarity with high school algebra, and eagerness to engage with historical and theoretical texts.

Description

Embark on a scholarly journey through the evolution of economic thought, tracing the development of key theories from Mercantilism to Modern Macroeconomics. In this comprehensive course, you'll explore the historical context that gave rise to powerful ideas, the brilliant minds who shaped our understanding of value, trade, and growth, and the rigorous models that still inform policy debates today.Starting with Mercantilism's emphasis on bullion accumulation and state regulation, we analyze the policy frameworks that drove early colonial trade and national power. We then delve into the contributions of the Physiocrats, Quesnay's Tableau Économique, and Adam Smith's revolutionary labor theory of value, division of labor, and the invisible hand. Students will examine Malthus's population dynamics and Ricardo's theory of comparative advantage before engaging with Mill's utilitarian ethics and Marx's critique of capitalism.Following the classical era, the Marginal Revolution transformed economic analysis by introducing marginal utility and equilibrium concepts. You'll explore Jevons's mathematical utility models, Menger's subjective value theory, and Walras's general equilibrium framework. Alfred Marshall's synthesis of partial equilibrium, Edgeworth's welfare economics, and Pareto efficiency criteria will deepen your understanding of microeconomic foundations. Discussions on externalities and Pigouvian taxes, along with Veblen's insights into institutional economics, will highlight the social dimensions of markets.Throughout the course, you will engage with richly illustrated lectures, interactive timelines, and original excerpts from foundational texts. Carefully designed quizzes and reflective prompts will reinforce your understanding and encourage critical analysis. Downloadable slide decks, comprehensive reading lists, and case study exercises provide hands-on practice. Discussion forums and live Q&A sessions foster peer learning and allow you to debate ideas with fellow students. By combining theory, historical context, and empirical examples, the course ensures a well-rounded learning experience that bridges abstract models and real-world economic policy.In the macroeconomic section, you'll assess the Keynesian Revolution and the General Theory's focus on aggregate demand, liquidity preference, and fiscal policy interventions. The IS-LM framework by Hicks and Hansen will clarify macroeconomic equilibrium. We then transition to the Neoclassical Synthesis, Monetarism under Friedman, and the Rational Expectations Revolution, exploring time-consistency, adaptive expectations, and policy implications. The course concludes with New Keynesian models on price and wage rigidities and endogenous growth theories that emphasize innovation, human capital, and knowledge spillovers.By the end of this course, you will be able to articulate and compare major schools of economic thought, critically evaluate theoretical models, and apply these frameworks to contemporary policy challenges. Whether you're an economics student, policy analyst, researcher, or history enthusiast, you will gain a deeper appreciation for the ideas that underpin modern macroeconomic policy and data analysis. Interactive exercises, case studies, and peer discussions will sharpen your analytical skills and deepen your historical perspective.Join us to build a robust foundation in economic theory, enhance your analytical toolkit, and prepare for advanced studies or professional practice. Engage with carefully designed lectures, real-world examples, and guided discussions that bridge history and theory. Unlock the intellectual legacy of economic science and discover how theoretical innovations continue to shape the world economy today.

Overview

Section 1: Introduction

Lecture 1 Hello and Course Overview

Section 2: Early Economic Thought

Lecture 2 Mercantilism

Lecture 3 Physiocrats

Lecture 4 Adam Smith and The Wealth of Nations

Lecture 5 Thomas Malthus and Population Theory

Lecture 6 David Ricardo and Comparative Advantage

Lecture 7 John Stuart Mill and Utilitarian Ethics

Lecture 8 Karl Marx and Critique of Capitalism

Section 3: The Marginal Revolution and Neoclassical Economics

Lecture 9 The Marginal Revolution Overview

Lecture 10 William Stanley Jevons’ Utility Analysis

Lecture 11 Carl Menger and the Austrian School

Lecture 12 Léon Walras and General Equilibrium

Lecture 13 Alfred Marshall’s Partial Equilibrium

Lecture 14 Arthur Pigou and Externalities

Lecture 15 Institutional Economics and Veblen

Section 4: Keynes to Modern Macroeconomics

Lecture 16 Keynesian Revolution The General Theory

Lecture 17 Hicks, Hansen and the IS-LM Model

Lecture 18 The Neoclassical Synthesis

Lecture 19 Monetarism and Milton Friedman

Lecture 20 Rational Expectations and New Classical Economics

Lecture 21 New Keynesian Economics

Lecture 22 Endogenous Growth and Modern Developments

Section 5: Summary and Next Steps

Lecture 23 Course Recap and Future Directions

This course is ideal for undergraduate economics students, policy analysts, researchers, and history enthusiasts seeking a comprehensive understanding of how economic theories evolved and shaped modern macroeconomic policy.