The Study of Economic History and the Importance of Understanding the Past

  • Kalim Siddiqui

Press/Media: Expert Comment

Description

At present, academic economics in the West (i.e. developed countries) are in a state of confusion, as their dominant economic thought and policy i.e. neo-classical is under attack, not least since the 2008 financial crisis but most recently after the Covid-19 crisis. The 2008 economic crisis posed challenges, not just deepening the economic and financial crisis, but also to teaching economics in the West. There was widespread criticism regarding how the economics curriculum over the years has become narrower. The subject of economics, which was once famous for several schools and thoughts, has been limited to just one school – neoclassical – where markets usually find equilibrium, meaning government intervention is not only needed, but any such intervention could hinder the economic growth process and smooth functioning of the economy. Neoclassical theory focuses on the behaviour of individual agents, which are assumed as economic decision maker. And these agents seek to optimise explicit goals “to make the most effective use of resources”. The decision of individual agents must balance, which is called equilibrium. (Dow, 2011)

Period25 Jan 2021

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