History of Modern and Contemporary Economics in the West I

Western economics has a history of more than 200 years since its development, but it has deeply shocked the world and made generations of readers crazy.

In the beginning, people thought that economics was about the study of wealth, the study of how to obtain the greatest wealth, and in the early days, people thought that wealth was precious gold and silver, and they were directly in the field of circulation, so economists came to the conclusion that to protect the field of circulation, that is, to protect the development of commerce.

This seems to be the original mercantilism, but also the most primitive state interventionism. The representative of this period was William Petty, who first proposed the labor theory of value.

Western Economics.

The research object is the rational allocation and effective utilization of resources under certain institutional conditions.

The object of study in Western economics.

1. Scarcity - the basic economic problem of human society.

Scarcity refers to the finitude of economic goods and resources relative to human desires or needs. The finite nature of economic resources and the infinite nature of human desires.

2. Selection and resource allocation.

The principle of three choices.

The minimum input gets the maximum output, that is, the scheme of optimal allocation of resources is selected. The way in which resources are allocated – the economic system The planned economic system --- allocate resources by administrative means. The market economy system --- a mixed economic system that allocates resources through market mechanisms--- combines market regulation with administrative means.

4. Definition and research object of Western economics.

1. Broadly speaking, Western economics is a behavioral science, which studies people's behavioral choices under conditions of scarcity.

2. In a narrow sense, Western economics studies how to choose the most efficient way of resource allocation, how to make full use of resources, and how to distribute social products.

3. Western economics studies the relationship between people and things.

4. The research object of Western economics is the rational allocation and effective utilization of resources under certain institutional conditions.

The Commercial Press's "English-Chinese** Investment Dictionary" explains that the invisible hand is "invisible hand" in English. The theory put forward by the classical economist Adam Smith in "The Wealth of Nations" holds that the development of a country's economy should not be intervened by **, but should be chosen by the needs of the whole society.

This social need is considered to be the "invisible hand" that regulates the market.

Economics refers to the economic theories and policy propositions that are popular in developed countries in Western Europe and North America. Western economics was born in the 15th century, and since the establishment of economics in the 18th century, especially since the 70s of the 19th century, it has been considered to be an important theory, concept, policy proposition and analytical method that can explain economic operation and state regulation. He is known as the "King of Social Sciences".

Economics is a compulsory basic course for finance and management majors in China's colleges and universities. It focuses on economic theory and economic policy. It not only studies the ancient and modern housekeeping management, but also studies the colorful business management, and boldly explains the increasing economic regulation and control.

It not only praises the efficiency advantages of the "invisible hand" of the first mechanism, but also ruthlessly analyzes the many shortcomings of the market mechanism in the allocation of resources in many fields.

Economics encompasses a wide range of topics, including microeconomics, macroeconomics, mathematical economics, dynamic economics, welfare economics, the history of economic thought, and so on. It mainly includes microeconomics and macroeconomics.

Microeconomics: The study of the rational allocation of economic resources by households, firms, and markets. Targeting the economic behavior of a single economic unit; The rational allocation of resources is the main problem to be solved; Take the ** theory as the central theory; Quantity analysis is used as the method; The basic assumption is that the market is clear, completely rational, and fully informed.

Macroeconomics: The study of the science of making the best use of economic resources in the overall operation of the national economy. Aiming at the operation of the national economy as a whole; the main problem to be solved by the full utilization of resources; The theory of national income determination is the central theory; Based on the total volume analysis, the basic assumption is that the market is out of order and efficient.