Books 2024: A History of Economics

Roger E. Backhouse

This is a brief history of Economics, quickly pushing from the ancient to the modern times. It is written from a very academic point of view — wrought with innumerable references and theoretical citations. Much of the economics is historical, followed by an amalgamation with statecraft, leading to something we know as ‘political economy.’ Comparatively, mathematical economy is a recent development with experimental & data driven features being something accepted only in the last three decades!

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1930–40:

Creation of National Accounts & large-scale systematic collection of economic statistics

1940–50:

Game Theory is established

Economics is employed in War Planning

Council of Economic Advisors is established in US

World War II & its implications on Economics:

1. Macroeconomics — Monetary economics & business cycle is developed

2. Birth of a mixed economy — A economy that is market driven but with government intervention is conceived as a working model

3. Globalization — Various institutions for world trade are established

1950–60:

US Military sponsors R&D in economics

1960–70:

Mathematization of economics, Keynesian economics reached its crest!

1970–80:

Oil prices rise as OPEC cuts production

The term ‘Stagflation’ is coined

Keynesian economics comes to an end

1980–90:

‘Experimental economics’ is recognized as a part of the economics subject

Globalization gathers pace

‘Adjustment lending’ is executed by World Bank

1990-Present:

Data driven economics is practiced

The aftermath of Globalization — the state of workers & poor in rich countries is a focus

Talk about ‘Environmental Economics’ has gathered pace

(PS: this is a personal interpretation of the facts presented by the author)