particularly relevant ideas in the realm of economic thought. As such his empirical argument against British mercantilism became the foundations of classical economics. His series of Essays in his Political Discourse(1752) are considered to be inspirations for modern economic theories in the ambits of money, international trade and growth and are believed to have strongly influenced his friend and fellow countryman Adam Smith. To understand his economics visions, one must read his essays of 1752
monetary and fiscal policy is related to the business cycles. Different schools of thought have explained their point of view regarding the stabilization of business cycles such as the Keynesian, the Friedman’s Monetarist and the classical. Keynes’s theory of business cycle is both related to the fiscal policy and the monetary policy of the economy since he related the recessions and recovery processes with aggregate demand, highly determined by the fiscal policy, and the interest rate, which is fixed
neoliberalism has been dominating and shaping the world today. Thorsen and Lie, on the one hand, stated that it is a new paradigm for economic theory and policy-making. Many scholars have stated in their studies that the core foundation of this ideology goes back to Adam Smith and his work “The Wealth of Nations”. In support to this, Clarke (2005) stated in his paper that Smith’s main argument in laying the foundation of neoliberalism was that, “free exchange was a transaction from which both parties necessarily
trade openness and economic growth is under constant dispute causing continued controversy among economists. Trade openness refers to the policies put in place by a country which either restrict or assist inter-country trade and its definitive effects on economic growth are unresolved. As International trade continues to increase, this relationship and its effects become more prevalent. This essay is going to discuss the association between the two by examining relevant theories and the empirical
process of growth: I. Progressive State: Capital accumulation is proceeding, either smoothly or erratically in this system. It is a condition of positive economic growth, usually associated with high and rising profits and wages. II. Stationary State: A stationary state is one in which growth is neither positive nor negative. Generally unwelcomed in classical political economy. Until J.S. Mill Stationary state was considered undesirable economic state, popularly it was believed that growth benefits
general pace of economy by endeavoring to keep up enduring growth and high amount of employment and stable prices. The market is part and parcel from our daily life as it is a mechanism where buyers and sellers exchange goods and services and decide upon the price which acts as a signal the balances the market for both buyers and sellers. In addition, economics has an exclusively influential device for clarifying changes in the economic life. it is called hypothesis of supply and demand. The government