Syllabus
FOR DETAILED DESCRIPTION OF TOPICS TOGETHER WITH RELATED COMPULSORY AND SUPPLEMENTARY LITERATURE PLEASE SEE ATTACHED PDF WITH GUIDELINES. Short summary of the sylabus: First Part
1) Economics and Moral Philosophy: The way to Adam Smith (3.10., JB)2) Marx and his Influence. Struggle of Socialists with Austrian School, the Economic Calculation Debate. (10.10., MP)3) Marginal Revolution and the Rise of Mathematics (Foundation of Neoclassical Orthodoxy): Jevons, Walras, Menger, Marshall and Methodenstreit. (17.10., MP)4) Keynesian Revolution and Followers of Keynes (24.10., JB)5) Positive Economics and Influence of Popper (31.10., MP)6) Modern Mathematical Economics, Lucas Critique and Foundation of Rational Expectations (7.11., MP) Second Part
7) Austrian School and Ordoliberalism – Intellectual Roots of Neoliberalism (14.11., JB)8) Monetarism, Rational Expectations and Theories of Business Cycles (21.11., JB)9) Explanatory Power of Economic Models: “Paradox of Explanation” (28.11., MP)10) “Fiscal Expansion versus Consolidation” Debate (5.12., JB)11) Behavioral Economics and Reflections of O. Blanchard (12.12., MP and JB) / Reflections of the Great Recession: Behavioral Economics and Changes in Macro (12.12., MP and JB).12) Zombie Economics and Perspective of Philosophy of Science (19.12., MP and JB) / Why Economists Do Not Reject Models That Have Failed? The Philosophy of Science Perspective (19.12., MP and JB)13) Lecture Reserved for Finishing Lectures and Q/A (btw. 1-4. January)
Annotation
This course has several aims. At first, we want to present key methodological revolutions within economic theory leading to the modern mathematical economics. Secondly using our historical investigation, we aim to explain main contemporary policy debates in macroeconomics such as “austerity measures versus fiscal stimulus”.
To achieve our goals, we have divided our classes into two blocks. Firstly, we focus on the history of modern mathematical economics and main policy ideas such as austerity. In the second part, we focus on intellectual roots of main policy approaches and we also open a debate about the usage of models that are empirically weak in current situation. To answer the question “Why empirically inefficient models are still being used?” we analyze the problem from two perspectives: a) philosophy of economics (“paradox of explanation”) and philosophy of science (legacy of T. Kuhn and I. Lakatos). The class therefore combines perspectives from history of economic thought, philosophy of economics and current policy debates with an aim to present history and philosophy of economics as important knowledge helping to understand current policy decisions and state of economics as a science.
The investigation of historical and methodological foundation of economics enables us to debate questions about the intellectual roots of positions of main policy makers, the
The course is designed as an introductory course therefore no deep knowledge of economic theory or philosophy is expected. However, the background in economics is of course an advantage. Our coverage of historical milestones and economic schools is arbitrary to fit to our main task (follow the gradual development of economics towards science based on mathematical methodology and explain selected policy debates). Therefore, many issues are neglected because of limited space (e.g. institutional schools, etc.).