Description and rational

Any analysis of contemporary societies requires some degree of familiarity with the concepts, tools, assumptions, policies, and philosophical positions that together describe the economy. This is particularly important since the discourse of economics is highly influential in the political process and thus, in order to participate in the democratic process, citizens are required to evaluate competing economic interpretations of facts and proposed policies. One would be hard pressed to imagine any topic that is more pertinent to the understanding of any society at both a practical as well as an ethical level.

Economic theory has a central role in shaping the world in which we live by providing explanations & justifications for numerous social, political, & even personal actions. As you will quickly find out in this course, these concepts are complex & depend on a host of assumptions & specific circumstances. Furthermore, they are often misunderstood and/or misused by journalists, politicians, & the general public. In the words of one of my favorite economists:

"The purpose of studying economics is not to acquire a set of ready-made answers to economic questions, but to learn how to avoid being deceived by economists."

(Joan Robinson, 1955)

The course will focus less on technical models than on the way ideas are shaped by history, and how, in turn, history is shaped by ideas. Consider the following quote from the “father” of macroeconomics:

“The ideas of economists and political philosophers, both when they are right and when they are wrong, are more powerful than is commonly understood. Indeed the world is ruled by little else. Practical men, who believe themselves to be quite exempt from any intellectual influences, are usually the slaves of some defunct economist.”

(John Maynard Keynes, 1936)