Economics History

Aims of the course

This course provides the grounds for understanding social and economic development in historical perspective from an interdisciplinary perspective on the study of economic growth. Students will get acquainted with the history and analysis of economic growth, inequality and political economy to understand why some countries forge ahead while others fail and remain mired in the vicious cycle of poverty. The economic history unveils the rise and decline of societies and perhaps provides more good questions than answers. The course requires an a broader interdisciplinary approach to long-run growth and development, and attempts to provide a tentative explanation for the path-breaking changes in the 20th and 21st century.

Course syllabus

The course sets the basic framework for understanding global economic history with special emphasis on European economic history. The course aims for exploring the basic dilemmas of economic growth and development in a historical perspective. It attempts to provide a tentative explanation for why societies some societies rise and other fail. Historical economic and social development is persistently cyclical where different nodes of civilization interplay ranging from Babilionian, Helenistic, Chinese, American and European path of development. The social and economic development of large empire has been crucially influenced by demographics, military power, institutions, trade and the ability to generate path-breaking technological progress. This course emphasizes three chronological and systemic episodes of European economic history: (1) Antiquity and institutional changes in the midst of late Medieval feudalism that set the stage for the onset of economic growth, (2) Industrial Revolution and the seeds of early capitalist development, and (3) the history of 20th century with special reference to the Great Depression, regulation and the international political economy. Long-term patterns of growth confirm two distinctive research questions: (i) why some countries produce so much more than others and (II) why economic inequalities are so large and persistent?

1. Introduction to economic history. Basic questions and methods of historical research. Institutions and economic development. Economic structure and structural change. Long-run economic cycles. The evolution of global economic system.
2. Economic development of babylonian world and antiquity. Economics of large empires. Trade and economic development. Economic outcomes of antique civilization. Crisis and transition.
3. The evolution of large empires with special reference to China, Mesoamerica, Little Asia. Special features of European Medieval age. The Medieval economy. The role of religion in Medieval age. Rural societies, the onset of early urbanization and the rise of cities.
4. The rise of early capitalism and the structure of material endowments. The role of money and prices in economic exchange. Early demographic transition and the onset of early colonialism. Mercantilism. The fall of Spain and rise of the Netherlands and England in European economic history.
5. First industrial revolution. Economic, technological and political prerequisites for economic takeoff. Early determinants of economic development with the special reference to technology, manufacturing, transport and finance.
6. Models of capitalist development in ¸9th century. Institutional changes and the economic role of the state. The rise and decline of societies in the aftermath of first Industrial Revolution. Modern forms of government. Western Imperialism and its contradictions.
7. The growth of world trade and liberalization. The position of the United Kingdom and the the role of glod standard. Economic disintegration. Economic aftermath of World War 1. Economics of Bolshevik revolution and communist economic system
8. Great Depression. Monetary regimes, financial crisis and the aftermath. Economic origins and effects of World War II. Postwar international economic arrangement. United States and the rise of free-market enteprise.
9. European economic miracle and the rise of welfare state. Economics of colonialization. The origins of the European Union. Inflation, stagnation and the shift of development paradigm. The rise of new liberalism. The collapse of Soviet Union. The decline of Bretton-Woods system. Washington Consensus and the end of history.
10. The expansion of European Union. Contradictions of European economic development. Convergence and divergence. The Great Recession and crisis of 2008 in United States, EU and Japan. A brief history of anti-crisis policy measures.
11. The economic, social and political future of the world. American hegemony and the rise of China. Evolution of capitalism. Can capitalism survive?

Course director(s)