Week 1
June 19 - 11:30 EST- Introductory Lecture by Jesús Fernández-Villaverde - Slides
In this introductory session, we set the stage for the course by explor ing how economic ideas have evolved from the Middle Ages to the modern era. We will delve into the contributions of early thinkers like Thomas Aquinas and the Scholastic tradition, focusing on their discussions of morality, justice, and the ethical dimensions of eco nomic exchange. This week also covers the influence of Aristotle’s philosophy on medieval thought, particularly through the School of Salamanca, which laid early foundations for concepts such as value, fair pricing, and property rights. By examining these intellectual bi ographies, we will establish a framework to understand how early economic principles paved the way for later developments leading to modern liberal economic thought. This exploration provides context for the thinkers we will study in-depth in subsequent weeks, such as Adam Smith, Karl Marx, and John Maynard Keynes
Week 2
June 24 - 11:30 EST - Lecture by Jacob Hall - Slides
June 26 - 11:30 EST - Lecture by Daniel Klein - Presentation Outline
This week focuses on Adam Smith, widely regarded as the father of modern economics. We explore his foundational contributions to the understanding of markets, trade, and economic growth. Smith emphasized the benefits of specialization and the division of labor, showing how these could significantly increase productivity. His theory of absolute advantage laid the foundation for modern trade theory, illustrating how countries can benefit from trade by focusing on the efficient production of goods in which they excel. Additionally, we will discuss Smith’s insights on the role of institutions, governance, and how economic systems are shaped by human behavior and social structures
Week 3
This week examines Karl Marx’s critique of capitalism and his influential contributions to economic theory and political thought. Marx developed his labor theory of value, arguing that the value of goods is determined by the amount of socially necessary labor invested in their production. He introduced the concept of surplus value, highlighting how capitalists extract profit by paying workers less than the value of what they produce, leading to exploitation. Marx’s analysis of class struggle,economic cycles, and the contradictions within capitalism provided a framework for understanding social and economic inequalities. We will explore how Marx’s ideas emerged in response to the social disruptions of the Industrial Revolution and continue to influence debates on labor, class, and economic systems today.
Week 4
July 8 - 11:30 EST - Lecture by Ivan Luzardo - Slides
July 10 - 11:30 EST - Lecture by Keith Tribe - Presentation Outline
This week delves into the contributions of Alfred Marshall, a key figure in the development of microeconomic theory and the formalization of economics as a discipline. Marshall introduced crucial concepts such as elasticity of demand, consumer surplus, and producer surplus, which continue to be fundamental to understanding market behavior. His work also emphasized the role of marginal utility in determining value based on the insights of the Marginal Revolution. Marshall is credited with integrating supply and demand analysis into a coherent framework for understanding prices and market equilibrium. In addition, he contributed to the understanding of market structures and the theory of the firm, exploring how competition, monopolies, and imperfect markets affect economic outcomes. His ability to combine theoretical rigor with practical policy insights made his work foundational for economics and public policy.
This week explores the contrasting yet intertwined ideas of John Maynard Keynes and Friedrich Hayek—two towering figures whose debates defined much of 20th-century economic thought. Keynes revolutionized economics by challenging the classical assumption that markets naturally return to equilibrium. During the Great Depression, he argued that insufficient aggregate demand could trap economies in prolonged unemployment, calling for active government intervention through fiscal policy to stabilize output and employment. In sharp contrast, Hayek emphasized the dangers of centralized economic planning. He argued that markets are powerful precisely because they transmit dispersed knowledge through the price system, and that interventions risk distorting these signals. While Keynes focused on short-run instability and the role of the state in smoothing economic cycles, Hayek was concerned with long-term institutional order and individual liberty. These sessions use their intellectual confrontation to illuminate more profound questions about knowledge, coordination, uncertainty, and the proper scope of the state in economic life.
In this final week, we turn to Milton Friedman and the broader trajectory of modern economic thought in the postwar era. Building on critiques of Keynesianism, Friedman placed monetary theory at the center of macroeconomic analysis, famously declaring that “inflation is always and everywhere a monetary phenomenon.” He championed rules-based policies over discretionary fiscal interventions, arguing for predictable frameworks to guide economic management. His revival of classical principles, coupled with a strong emphasis on empirical research, significantly influenced global macroeconomic policy from the 1970s onward. We also explore the broader evolution of economics during this period—from the rise of micro foundations to the growing reliance on mathematical formalism and policy modeling. The week concludes with a critical reflection on the future of economics and the place of the history of economic thought within the discipline.