Index of Subjects ‘absolute surplus-value 147 absolute value 100, 107 ‘absolutist’ 6 acceleration hypothesis 338–9 accelerator 243 accumulation of capital, drives growth process 68 AD-AS model (aggregate demand-aggregate supply) 371–2 Adam Smith problem 81 additive theory of price 86 demand as fundamental determinants of price 72 ‘Age of Capital’ 134 Age of Restoration, Congress of Vienna (1815) to (1848) revolutions 90 first phase (1815–30) 90 ‘Age of Ricardo’ (1816–48) 91 agency costs, new category that differs from transaction costs category 484 ‘agrarian protectionism’ 49–50 alternative approaches, Allyn Young and increasing returns 299–301 from Dmitriev to Leontief 308–13 institutional thought in the inter-war years 304–8 reawakening of Marxist economic theory 313–16 Thorstein Veblen 301–4 America, discovery and century long inflation 38 American Declaration of Independence (1776) 54 American Economic Association, (1885) 209 (1918) Hamilton presented ‘institutional approach’to 306 Wardman Group of institutionalist economics and 487 American economic history (1880 to 1915) 301–2 American Economic Review (1950) 276 American Economic Review (1973) 422 American Federation of Labour (1881) 302 American neo-institutionalism 476 American post-Keynesians, investigate monetary dynamics 352 An Inquiry into the Nature and Causes of the Wealth of Nations (1776) Wealth of Nations see Smith analytical Marxism or rational choice Marxism approach 503 anthropological reductionism 513–14 anti-bullionists 123–5, 160 anti-Ricardian branch, developed into neoclassical economics 114 ‘anti-Ricardian reaction’ 2, 102–4 anti-Ricardians 101, 103, 168, 171 apprentice, not paid on basis of his productivity 78 approaches to institutional analysis, contractarian neo-institutionalism 476–9 evolutionary neo-institutionalism 489–91 Hayek and the neo-Austrian school 495–500 irreversibilities, increasing returns and complexity 491–5 the new ‘old’ institutionalism 484–9 the ‘new political economy’ and surroundings 475–6 utilitarian neo-institutionalism 479–84 arbitrage operations, gold and money 43 Arkwright’s water-frame (1768) 54–5 Arrow–Debreu, model of intertemporal equilibrium 285 works, ‘Existence of and Equilibrium for a Competitive Economy’ (1954) 381 first fundamental theorem of welfare economics (1951) articles and 397 second fundamental theorem of welfare economics 397 Arrow–Debreu–McKenzie, general-equilibrium model 3, 394 ‘On Equilibrium in Graham’s model of World Trade and Other Competitive Systems’ 381 Association for Evolutionary Economics (AFEE) 487 at the threshold of the millennium, modern and post-modern 461–6 atomism, economic agent’s preferences formed without others’ preferences 463 auctioneer, the 238, 347–8, 364, 391, 395–6 Austrian school, concept of time as irreversible succession of moments 216 joins the mainstream 217–18 subjectivism and 215–17 theory of wages fund and 120, 178, 191 Wieser and 215 Austrian War of Succession (1741) 54 avarice, impulse to accumulate 78 average profit margin of industry, average degree of monopoly and 260 Bank Charter Act (1844) ( also known as ‘Peel Act’) 126 English economy able to expand without problems of external equilibrium 127 suspended (1847), (1857) and partially (1866) 127, 189 bank credit, reductions in cause decrease in investment, production and employment 141 Bank of England, drastic cut in issues 124–5 excess of issues by 122 should maintain gold reserve (£15–18 million) for temporary drains 127 usury laws forced to expand credit when profit above 5 per cent discount rate 129 bank, the 23 banking multiplier 127 banking school, Marx and 159 money supply endogenous and Bank of England incapable of controlling it 126 problems for gold reserves from exogenous and commercial difficulties 127 bankruptcies, intertwining of credit and debt may bring chain of 160 bargaining negotiation 208 base orientations 9–10, 13 Belgium 111 Belle E ´ poque 196–8 ‘benevolent action’ 402 Benthamian doctrine, interpreted in different ways 396 Berle and Means, Modern Corporation and Private Property (1932) 414 beyond homo oeconomicus 512–15 ‘Big Seven’ industrialized countries, conferences 325 bill of exchange 23 Bolshevik Revolution 232 bourgeois class, general interest of the nation and 69 bourgeoisie, undermining old aristocracy 23 Bowley’s Law 259 Bretton Woods (1944) 323–4, 458 British East India Company (1600) 35 Brouwer’s fixed-point theorem 282 ‘Bullion Committee’ (1810) 122–3 bullionism, characterized by conviction that money or gold was the wealth 32 bullionist economists 33–4, 123, 125 currency school and (1825) crisis 125 Restriction Act as illicit government interference 123 Cambridge equation 235, 250, 255, 356 Cambridge Pigouvian economics 275 Cambridge post-Keynesian theories (1950s and 1960s), opposition to Solow-Swan type 353 Cambridge theory of distribution 351 Cannan–Marshall–Pigou line of thought 291 Canonists and preachers, raged against speculative practices 25 capital, ‘concentration’ and ‘centralization’ 158 great debate on theory of (1960s) 217 marginal efficiency depends on psychological factors 254 marginal productivity of 178–9 result of abstinence from consumption of capitalists 119 social relationship 145 wages fund and 118–21 capital movements, enormous speculative bubbles 458 capitalism 172 competitive and trustified 264 ensures productive and allocative efficiency 203 historical nature of according to Marx 145 instability of 253 real dynamics generated by ‘innovator entrepreneur’ 263 theory of monetary circuit and analysis of structural change 500–1 unemployment is integral part of 262 524 index of subjects capitalist accumulation, role of housework in 510 capitalist societies 70, 164, 266 capitalists 69, 80, 501, 507 ‘capitalization equations’ 186 cardinal utility, abandoned 226 Cartesian philosophy 45 Cartesian rationalism 31 ‘catastrophist’ view or ‘discontinuist’ 5 Catholic view of society, ‘mystic body’ 134 chair socialists 179, 190 Chartist movement 91, 133, 140 Chicago, Keynes and Harris Lectures 251 Chicago School 404, 420 choice basis of the actions 396 Christian to agrarian socialism 2 circulating capital, buys raw materials and pays for labour and energy 68–9 ‘citizenship club’ 410 city economies, twelfth and thirteenth centuries 19 civil authority, repeated acts of obedience and 66 civil humanism 23–4, 59 classical savings hypothesis, workers do not save 356 classical economics, capitalistic system and 109, 166–7 classical economists, unsatisfactory theory of income distribution 171 classical economists and Marx, dynamic which evolves through historical time 445 classical liberalism 44 classical macroeconomics, problems with rationality of expectations 343 classical situation, new (1890s) 2 ‘classical situations’, Schumpeterian notion 6 ‘classical unemployment’, disequilibria when real wages too high 350 ‘clipping’ 38, 43 co-operative games, multiplicity of possible equilibria 430 colonial war between England, France and Spain (1754–63) 54 commercial policy, protectionist 35 Common Market 323 Communes, as autonomous states independent of imperial rule 23–4 communis aestimatio principle, wage adequate to social status of worker 20 community, selling ‘concessions’ to pollute 403 commutative justice 22 ‘comparative value’, equivalent to Smith’s ‘exchange’ value 107 compensation, considered to be interest not usury 21 ‘compensation tests’, ‘potential welfare’ and 293, 295 competition, diffusion of innovations and 263–5 quickest road to efficiency 464 competitive market, no better alternative 464 ‘complexity, modern theory of systems and 496 concept of locatio operarum, end of feudal discipleship 23 condemnation of usury, Aquinas and Aristotle 21 conditions of competitive equilibrium 73 Congress of Vienna (1815) to (1848) revolutions, Age of Restoration 90 ‘consequentialism’ 396 constitution of Corpus iuris civilis 23 consumers 182–3, 185 contemporary economic theory, neoclassical mainstream in defining ontological assumptions 513 contemporary Marxists, theory of labour or theory of exploitation 452 contested exchange 507 Continental classical tradition, taken to extreme conclusions 102 Continental economists, felt no need to offer justification of private property 49–50 Continental middle class, the Enlightment and 82 Continental socialists 2 contractarian approach, deals with economic subjects in explicit way 477–8 contractarian neo-institutionalism, ‘process oriented’ and ‘end-state’ 477 controversy on marginalism in theory of firm and markets, critiques of neoclassical theory of the firm 413–15 managerial and behavioural theories 418–20 neocalssical reaction and new theories of the firm 420–3 post-Keynesian theories of the firm 415–17 Corn Laws (1816–46) 91–2 ‘Cournot and Walras Equilibrium’ (1978) 280 credit, demand for, kept high by speculation on goods 160 525 index of subjects ‘Credit Anstalt’, collapse of (1931) 246 ‘Crises and Cycles in the Development of Economics’ 7 ‘crowding-out thesis’, modern reformulation of ‘treasury view’ 336–7 Cugnot, steam-driven carriage (1769) in France 55 cultural revolution, revival of arts and 23 currency school, principle of ‘metallic fluctuation’ 125 cyclical fluctuations 265–6 Darwinian theory 433, 487, 490 ‘dearth of money’ 160 debate on economic calculation under socialism, the dance begins 295–6 Hayek’s criticism 298–9 neoclassical socialism of Lange and Lerner 296–8 Declaration of Rights (1689) 66 ‘deconstruction’, post-modern critical spirit and 462 decreasing returns in agriculture 62 decreasing-cost sectors, firms never become large scale 272 default interest, admitted 21 ‘degree of monopoly’, measured by Lerner’s index 416–17 demographic growth, partially explained by demand for soldiers 36 depression, second half of seventeenth and first of eighteenth century 38–9 ‘deterministic chaos’ 494 deus ex machina 279, 395 development in new welfare economics and economic theories of justice, debate about market failures and Coase’s theorem 400–4 economic theories of justice 409–13 Sen and the critique of utilitarianism 406–9 theory of social choice: Arrows impossibility theorem 404–6 two fundamental theorems of welfare economics 396–400 diagonal dominance, definition 385 differentiability hypothesis 387 differential rent 94, 108 diseconomies of scale of managerial nature 279 disintegration of classical political economy in age of Ricardo, anti-Ricardian reaction 102 Cournot and Dupuit 104–7 Gossen and Von Thu¨nen 107–9 Ricardians–Ricardianism and classical tradition 100–2 Romantics and German Historical School 109–11 ‘disutility’ 108 divine law 20 division of labour 68, 300 role in capital accumulation process 46 double entry accounting 23 Dutch East India Company (1602) 35 Eastern Europe, outside Marshall Plan 324 Econometric Society, (1936) 325 (1952) 310, 381 Econometrica, (1935), ‘A Macroeconomic Theory of Business Cycle’ 258 (1953) 382 (1954) 381 (1961) 341 economic agent, self-interested and competitive being 83 economic facts, change through time and space 8 economic historicism, silenced as ‘Manchestertum’ 191 economic ideas of Aquinas and scholasticism, moral rather than scientific ideas 22 economic interdependence, Bretton Woods (1944) to mid (1970s) 458 Economic Journal, The, (1926) 272 (1931) 242 (1934) 277 (1939) 243 economic laws, objective characteristic of natural laws 167 same properties as ‘natural laws’ 110 economic problems, strictly linked 12 economic propositions of scholasticism, positive law and 20 economic role of scarcity 384 economic theories of justice, questions of efficiency and justice 410–11 Economica (1934) 286 economics, abandoned Aristotelian and Thomistic ideas 30 as ‘catallactics’, science of exchange 103 526 index of subjects ceased to be ‘domestic economy and became ‘political’ 35 different schools but all share basic philosophical bearings 462–3 emancipated itself from ethics and political philosophy 29 not ‘Darwinian’ discipline 8 science of same type as natural sciences 110 self-evident truths and 45 ‘economics’ (1879), rather than ‘political economy’ 169 economics of information 345 economists, classical political economy and 44 divided into three groups in (1920s) 233 European in America, general-equilibrium theory and 380 group who developed analysis of costs for adjustment of prices 367 methodical problems in making economic thought a science 45 neo-monetarist idea that stable unemployment always voluntary and 368 use of ‘neo-liberism’ in ironic or derogatory sense 460 economy 82, 362, 441–3 ‘economy as Kreislauf ’, as circular flow 311 egoism 463, 465 employed workers (insiders), more unionised than unemployed (outsiders) 370 Encyclope´die, impact on culture (1751 and 1776) 55 end-state approach, explains institutional set-up of society with model 477 endogenous growth theory 435–6 England 28, 111 Chartist petition presented to parliament (1848) 91 conflict (1842–3) 133 evolution of political conflict 90 Fabianism 179 historicists less involved en philosophe than Germans 179–80 involved with series of wars with France (1793–815) 123 problem of unemployment 245–6 Reform Bill 133 Ricardianism, version of classical system 168 spread of capitalism and enclosure 54 stagnation after Napoleonic era 124 ten-hour working day (1850) 112 Whig election victory (1830) 91 English banking system, difficulty in keeping situation under control 164 English Commonwealth (1649) 66 English empiricism 31 English free-trade economics 63 English monetary theories and debates in age of classical economics, Bank Charter Act 124–7 Restriction Act 121–4 Thornton, Henry 127–9 English Navigation Act (1651), prohibited importation of goods on non-British ships 35 English tradition, political and social implications of value theory and natural-law philosophy 47–8 Enlightenment, The, ideas of ‘reason’, ‘experience’, and ‘science’ 55 entrepreneurs, choose activities with aim of minimizing costs 439 decide on level and composition of production and investment 182 mere co-ordinators who organize productive activity 185 environmental issues 325 Epicurean philosophers, politike` oikonomia 30 epochs of economic theory 1–4 equation of exchanges, scientific explanation of price level 234 equilibria, Keynesian unemployment’ and 350 equilibrium situation, forces of demand provide for distribution of capital 73 estimative theory of value 58 Euler theorem 206 European Association for Evolutionary Political Economy (EAEPE) 489–90 European Coal and Steel Community 323 European countries, agricultural depression caused by American corn 164 European Monetary System 325 European post-Keynesians, investigate growth and distribution 352 European wars, wars among nation states 28–9 evaluation of alternative situations 396 evolutionary games 432–5, 498 evolutionary neo-institutionalism, links back to Veblen 490–1 exchange, as exchange of property rights 482 exchange of equivalents 19–20 527 index of subjects exchange of securities on the market, venditio sub dubio 26 exchange value of ingots, supply and demand 43 exchangeable value, wages, profit and rent 71 expectations 237–8, 253–4, 285, 288, 330, 340–5 agents and 394–5 endogenously formed 345–6 self-realization of 370 exploitation 143–5, 147, 172 export duties, had to be abolished 35 externalities 400, 403 Fabians 2 factors of production, same as stocks of goods and 183 fall in profits, increase in capitalist control over production process 4 Fascism, bourgeois terror and 233 feminist thought, critique of modernist economic science 511 financial crises, often assume characteristics of chain bankruptcies 501 financial fragility, ratio between indebtedness of income produced by firms 360 financial globalization, world’s overwhelming phenomenon 458 firms, act on basis of bounded rationality 419 basic objective is ‘survival’ 419 buy inputs when more convenient than producing them themselves 481 faced with turnover costs 370 large as pool of resources organized by the managers 418 large possess discretional market power 416 linear programming important for 438 main concern price and not quantity to produce 416 as organizations 415 output sold gives rise to revenues 183 tend to leave wages unchanged and lay off excess labour force 369 tend to reduce production to ward off bankruptcy 370 traditional neoclassical view based on three pillars 413–14 why do they exist? 480 First World War, doubts about capitalist system 232 economic growth sustained till 196 fix-price approach, success in (1970 and 1980s) 363–4 fixed capital, machinery, plant, buildings and 68 flex-price hypothesis 345, 364–5 Florence Commune 25 Florentine Guilds (fourteenth and fifteenth century), operated authentic industrial syndicate 27 flow of new money, elastic with respect to flow of income 124 ‘Folk Theorem’ 431 forerunners of classical political economy, Boisguillebert and Cantillon 49–51 Locke, North and Mandeville 47–9 premisses of a theoretical revolution 43–5 William Petty and ‘political arithmetick’ 45–7 Fortnightly Review 118 France 28, 42, 111 1848 revolution which became a blood-bath 91 conflict (1844–6 and 1848) 133 evolution of political conflict 90 explosion (1872–3) 172 July Revolution (1830) 91 physiocrats 55 radical egalitarian results in 67 right to strike (1864) 112 spread of capitalism and rise of fermier 54 surplus on balance of payments after World War One 245–6 theory of value and 85 free competition, regulated by law of sympathy 79 free trade 112 free trade revolution 5 free-riding 222, 402, 464–5, 505 free-trade theories 64 freedom 23–4 French ‘regulation’ school 490 from disequilibrium to non-Walrasian equilibrium, disequilibrium and the microfoundations of macroeconomics 346–7 non-Walrasian equilibrium models 347–51 from the golden age to stagflation 323–5 from utopia to socialism, birth of the workers’ movement 133–4 Saint-Simon and Fourier 135–8 two faces of Utopia 134–5 full employment 353, 355 528 index of subjects ‘full-cost rule’ 414 ‘fundamental equations’, only valid under full employment 251 fundamental theorems 397, 400–1, 403 funeral and demand for black cloth 72–3 fungible goods, destroyed through use (wine for example) 21 game theory, conflict and co-operation betweem rational decision-makers 428 replicator dynamics in evolutionary 434 game theory and non-uniqueness of general equilibrium, economic agents 464 games, evolution and growth, evolutionary games and institutions 432–5 game theory 428–32 theory of endogenous growth 435–7 general equilibrium of production and exchange, three properties 397–8 General Theory (1936) 219, 242, 247, 251, 256, 332, 351 atttemps to normalize Keynesian heresy after publication of 325 criticism of Say’s Law 251–2 effective demand and employment 251–4 Hicks and 289–91 liquidity preference 250, 254–8 nominal rigidities an element of stability 368 particular type of equilibrium in 350 post-Keynesians and 352 social philosophy and 257 General Theory of Employment Interest and Money (1936) see General theory (1936) general-equilibrium model, criticisms of 388–9 general-equilibrium theory, English academic circles and 284 German ad Austrian economists, dispute reached climax (1883) 191 German cameralists, worked at the Kammer or treasury of sovereign 33, 190 German Historical School 2, 111, 189, 191, 210, 393 German historicism, nineteenth-century Romanticism 109–10 German Manchester School 168 German Social Democrats, Marxism as official ideology of 313 Germany 36, 90, 107, 111 Christian socialists and chair socialists 179 explosions (1877) 172 Grosse Depression associated with the Bismarckzeit 164 Giornale degli Economisti 227 globalization, definition 456–9 Glorious Revolution (1688) 66 God’s will, popular consent given to the legislative power of governors 30 gold, inflow and outflow depends on balance of trade 34 Gold Exchange Standard (1970s), abandoned 324 gold reserves, oscillations in could not be influenced by credit policies 126 Gold Standard 196–7, 468 abandonment of 233, 246 ideological nature of doctrine 127 Keynes and 249 return to 245 golden -age growth model, ‘closed’ 355 golden age (1950s and 1960s), short-lived 324 Gournay’s maxim, ‘laissez faire, laissez passer les marchandises’ 57 government vices 479 Great Britain, post-Keynesians 351 Great Britain (1877), explosions 172 Great Depression, crisis in capitalist system (1870s and 1880s) 163–4, 196 Fisher and 214–15 ‘Gresham’s Law’ 32 gross substitutability hypothesis, crucial to obtain stability 385 growth rate of wealth, equal to that of the capital stock 355–6 Hargreaves’s spinning-Jenny (1764) 54 Trade Cycle, The 243 Harrod-Domar model 243–4, 354 capital-output ratio a constant 356 possibility for capitalist economy to grow at ‘natural’ rate and 334 Heisenberg’s principle of indetermination 495 Hicks-Modigliani macroeconomic- equilibrium model 3 ‘high theory ’ years (1920s and1930s) 3 Historical School 109, 110, 192 history of economic thought 3–4 Holland 196 529 index of subjects Holy Alliance, internal order in Central and Eastern Europe 90 Holy Roman Empire, dissolution of and national unification process 28 homo oeconomicus 465, 514 reductionism, overcoming a necessary step in reconstruction of economics 514 honourable profit 26–7 human beings, self-interested 84 human intelligence, able to reach truth by speculative method 20 humanism 23, 25, 29 Hungary 196 hypothesis of desirability 387 hypothesis of nominal rigidities, reduction in production consequence of price stability 374 hypothesis of ordered markets or frictionless markets 349 hypothesis of voluntary exchange 348 ‘impartial spectator’ 79 ‘impatience and opportunity’ theory of interest 213 imperfect market, flow of sales inversely related to price of product 278 implicit contracts, wages maintained stable through time 368 import duties, had to be raised 35 ‘impossibility of a Paretian liberal’ 407–8 improvement in terms of trade, reflect positively on balance of payments 41 increase in industrial wages, no significant increase in industrial-labour supply 36–7 increase in quantity of money, could increase trade surplus rather than rebalance it 41 reduction in price of credit 39 increase in wages, rather than reduction in profits 71 increasing returns of scale, concept of long-run equilibrium and 300, 491–2 problems of 492–3 systems characterized by marked non-linearity 494 incrementalist and catastrophist approaches, criticism of epistemological roots 6 India Committee (1899) 235 ‘individual freedom’ 23 individualism, must be justified on philosophical grounds 514 individualistic reductionism, elimination of social classes 167 individuals 80, 513 industrial development, first phase in hands of craftsman 41 ‘industrial reserve army’, unemployment 156–7 Industrial Revolution 54, 82 inefficiencies, cure for by externalities, opportune corrective measures 401 inflationary impulses, bad harvests and imports 124 Ingrao and Israel, ‘General Economic Equilibrium: A History of Ineffectual Paradigmatic Shift’ (1985) 392 innovations 264–5 Inquiry into Those Principles Respecting the Nature of Demand and the Necessity of Consumption (1821) 141 institutionalism 2, 300–1, 307–8, 484 ‘institutionalist approach’, school of thought by Veblen and Commons 305–6 survived and intellectuals continued work 485 insurance 23 intellectual migration, moved by push and pull forces 513 interest, remuneration, not of savings, but of capital 120 International Monetary Fund 323, 458 international trade, slow-down in growth 164 theories appearing in (1920s and 1930s) and 492 intrinsic value (bonitas intrinseca), just price and 20 ‘invariable measure’ 100 investment, increasing function of rate of profit 155 investments, decrease as entrepreneur’ confidence falls 254 depend on profit expectations and the interest rate 260 invisible hand 7, 73–4, 79, 145–6, 257, 335, 391, 397, 499, 506 long way from beneficial effect laissez-faire theorists predicted 486 530 index of subjects is of history of institutions, ought to be of the natural order 74 IS-LM analytical apparatus based on hypothesis that price level datum 371 Italian republics, serfdom abolished at end of thirteenth century 23 Italian tradition, subjective theory of value 10 Italy 36, 90, 172, 196 the Enlightenment in 58–9 Naples schools 55 post-Keynesians in 351 Japan 196 Jevons’s Law, ‘law of the levelling of price’ 42 Journal of Economic Issues, Galbraith and 485 Journal of Law and Economics (1958) 276 Journal of Post-Keynesian Economics 351 Juglar cycles (a decade) 266 ‘just’ level for rate of interest, supply and demand of money and 48 just price, Aristotle and 19–20 just price operated by Florence tended to be monopolistic 27 ‘just wage’, communis aestimation principle and 20 justice 80, 409–10 justification approach to economic rationality 410 justification of private property, natural-law philosophy 47 ‘k-equilibrium’ 348 Kakutani’s fixed-point theorem 381 Kałeckian conception of widow’s cruse, developed by Robinson 354 ‘Keynes effect’ or ‘windfall effect’ 327 Keynesian, indirect transmission mechanism 255 Keynesian multiplier 240, 259, 359 Keynesian and neo-classical theory, basic incompatibility between 351 Keynesian problems, necessary to study disequilibrium to account for 346 Keynesian revolution 5, 287 arose from ‘Treasury view’ 247 began by claiming a general theory 12 influenced Gruchy and Foster 487 investments that generate necessary saving for financing 253 Keynesian ‘special case’ 248 Keynesian theory 10, 404, 409–10 Keynesians, discussions between monetarists and 121 King’s Law 47 ‘kinked-demand’ model 415 Kitchin cycles of fluctuations (forty months) 266 Knowledge 436, 497 knowledge of determinates of market prices, understanding origin and growth of profits and 41–2 Kolloquium 280–2, 380 ‘new growth theory’ 435 labour, real measure of exchangeable value of all commodities 70 labour commanded, relative price 70–1 labour market, problem of imperfectly competitive markets 37 labour power 172 labour theory of value 46–7, 103, 170, 451 Lady Chatterley’s Lover 408 Laissez-faire 114, 476 argument 49, 359, 391 policy 62, 233 laissez-faire revolution (1751–76) Galiani and the Italians 58–63 Hume and Steuart 63–5 preconditions of Industrial Revolution 54–5 Quesnay and the physiocrats 55–8 Lakatos’s, methodology of the scientific research programmes 5–6 land and labour, transferred rather than bought and sold 19 landowners, convinced Parliament to approve Corn Laws 92 propensity to save is zero 69 Lands of Cockaigne 135 Lange-Lerner market socialism, Dobb a critic of 448 ‘latent monetary capital’ 160 Latin America 458 Lausanne School 227, 229 ‘laws of development’ 110 laws of movement 157–8 ‘laws of tendential movement’ 502 ‘leakage 3 in multiplier, caused by savings 242 legal rule, as important as moral rule 79 531 index of subjects Lerner’s index 417 lexicographic ordering 470 liberation of labour, abolition of social relations between capital and labour 137 ‘life-cycle’ hypothesis 329 linguistic canons, delimit the field of discourse 10–11 liquid reserves, demanded for precautionary motives 255 liquidity preference theory 128–9, 255 literature on ‘real business cycle’ 342 Lloyd George and Liberal Party, employment programme 249, 307 Loans 21, 26 logical positivism, Anglo-American social science and into LSE 292 London, Crystal palace exhibition (1851) 111 London School of Economics 217, 284 love of praise, ambiguous, egotistical and altruistic 78 low level of wages, to discourage ‘vice and idleness’ 65 low price elasticity of imports and/or exports 34 ‘Lucas critique’, doubt on stability of IS and LM curves 371 Luddite social uprisings (1808–20) 133 Macmillan Report 251 macroeconomic, microeconomic and institutional components, Smith’s economic theory 74 macroeconomics, based on theory of surplus 74 ‘Malthusian population principle’ 36, 82–3, 96–7, 171, 209, 352 management, susceptible to improvement and innovation 279 ‘management science’ 163 mannerism, aspect of post-modern discourse 466 manufacturers, opposed Corn Laws 92 marginal calculus 176–7 marginalism, ‘auxiliary hypotheses’ 421 founders not integrated into classical traditions 168 marginalist controversy, post-Keynesian and managerial-behavioural theories 415 marginalist prejudice, parable 443–4 marginalist revolution, climax of 1870s and 1880s 163–5 conquered academic circles of Western countries 197 freed microeconomics 169 neoclassical theoretical system 165–7 preserved basic philosophy of classical approach laissez-faire 173 reasons for success 170–3 reformulation of terms of economic discourse 224 was it a real revolution? 167–70 marginalist rule, lack of information and 416 marginalist theory 2–3, 82 market, capable of complete self-regulation 73 neither essentially anarchical nor essentially ordered 509 set of institutions 77 ‘market failure’, contractualists and 478 market price, depends on forces of supply and demand 72 market socialism model, ‘pieces’ that do not exist in capitalist market 297–8 market wage 156 forces of supply and demand for labour 96 Marshall Plan, industrial development of European countries 323 ‘Marshallian cross’ 199 Marxism 171–2, 179 post-modern condition and 500 Marxist critics, ideology and 390 Marxist economic thought between orthodoxy and revision, Marxist heresies 449–51 Marxist thought before (1968) 446–9 towards a theory of value with feet on the ground 451–2 Marxist metanarrative, theory of laws of movement of capital 464 Marxist metaphysics, based on concept of homo faber 463 Marxist scholars 6, 452 Marxist school 2 Marxist thought, 1968 crucial year for evolution of 450 exploitation of women function of capitalist relation 511 Marxists, inclined to snub formal virtuosities 503 ‘monetary measure of labour’ 466 532 index of subjects [...]... distribution of income and 138 theory of utility value 59–60 theory of demand and 199 theory of value 10, 62 costs of production and 169 Florentine wholesale trading and tagging 26 theory of profit and 71 theory of wages, theory of income distribution and 171 theory of wages-fund, developed by followers of Ricardo 115, 171 thesis of trade-off 410 Thomism, man emancipated from at Renaissance 29, 31 threshold of. .. 112 540 index of subjects Theories of economy harmony and Mill’s synthesis, ‘Age of Capital’ and theories of economic harmony 111–13 capital and the wages fund 118–21 Mill, J S 113–15 wages and wages fund 115–18 theories of imputation and opportunity cost 192 theories of nominal rigidities, unemployment and under-utilizationof resources as consequence of co-ordination failure 368 theory, of the circular... 31 pure economic theory, compact doctrinal corpus 198 ‘putting-out system’, England and France towards end of sixteenth century 28 537 quantity of labour commanded, quantity of embodied labour 70 quantity of money to value of transactions, mercantilist economists and 40 quantity theory 38, 45, 63 quantity theory of money 34, 38, 64 Quarterly Journal of Economics (1872) 218 Quarterly Journal of Economics... 213 inter-temporal choice and quantity theory of money 212–15 inventor of index numbers and pioneer of econometrics 212 level of prices and equation of exchanges 234–5 marginal productivity of waiting 219 theory of ‘debt deflation’ 214 theory of general equilibrium 213 theory of individual savings 214 works, Appreciation of Interest (1896) 213 Mathematical Investigations in the Theory of Value and Prices... utility 225 theory of production as circular process, activity analysis and non-substitution theorem 437–40 debate on theory of capital 440–4 production of commodities by means of commodities 444–6 theory of profit 74, 98 theory of structural change, cyclical and long cycles 502 theory of surplus 74 foundation for theory of capitalist exploitation 171 macroeconomic component in Smith 76, 102 theory of underconsumption,... critical detachment to Marxism 507 Braverman, H., Labour and Monopoly Capital (1974) 451 Buchanan, J 476 Limits of Liberty: Between Anarchy and Leviathan (1975) 479 Buchanan and Tullock, public choice School and 478 Buchanan and Tullock, Calculus of Consent (1962) 479 Buridan, Jean, value of goods at what they really are 31–2 Cairnes, J E 2, 112, 116 Cannan, E 32, 100 Cantillon, R 40–1, 44–5, 50–1, 82 Essai... 336 trial-and-error procedure 296–7 Tugan-Baranovskij’s cycle model 314 Tugan-Baranovskij’s numerical solution 309 ‘turnpike theorem’, direct application of von Neumann’s model 283 two-person zero-sum games, general 296 theory and 428–9 two-sector economy, reproduction conditions and 151, 154 United States 111, 172, 324 ‘agrarian socialism’ 179 Hicks’s Value and Capital in 287 post-Keynesians 350 slavery... ‘degree of monopoly and 260 hypothesis of ‘increasing risk’ 261, 359 indebtedness increases risk of bankruptcy 370 inflation determined by the distributive conflict 362 level of income and its distribution 258–60 principle of adjustment of the capital stock 261 theory of effective demand 258, 260 three hypotheses to determine profit share 259–60 the trade cycle 260–2 widow’s cruse theorem and 259,... 116 theory of rent 209 theory of value and distribution and 102, 202, 205 use of Say’s Law 97 works, Notes on Malthus (1820) 96 On the Principles of Political Economy and Taxation (1817) 82, 92–3, 97, 219, 440 Plan for the Establishment of a National Bank (1824) 125 Works and Correspondence 97 Ricardo and Malthus, the Corn Laws 91–2 discussions on value 97–100 profit and wages 95–6 profits and over-production... anti-Ricardian tradition and 171 attitude to trade unions 175–6 defeated Ricardo 10 English historical economics 179–80 law of decreasing returns 174–5, 177 logical calculus in economics 173–6 theory of capital 120 theory of exchange in 174 theory of labour supply 176–7 ‘toil and trouble’ of labour 75 utility theory of value 166, 174, 219 wages and labour, interest and capital 176–9 works Methods of . trading and tagging 26 theory of profit and 71 theory of wages, theory of income distribution and 171 theory of wages-fund, developed by followers of Ricardo 115, 171 thesis of trade-off 410 Thomism,. sixteenth century 28 quantity of labour commanded, quantity of embodied labour 70 quantity of money to value of transactions, mercantilist economists and 40 quantity theory 38, 45, 63 quantity theory of money. welfare economics and economic theories of justice, debate about market failures and Coase’s theorem 400–4 economic theories of justice 409–13 Sen and the critique of utilitarianism 406–9 theory of