Welcome to SPE101 An Introduction to Political Economy and Economics
Welcome to this preview site. It has been set up so that you can get a good sense of what the subject is about. It contains all the learning materials for Week 1 of the subject. Don’t hesitate to get in touch if you have any questions.
Best
Dr Tim Thornton
Director. School of Political Economy, Melbourne
Senior Research Fellow, Economics in Context Initiative, Boston University, Boston MA.
Senior Research Fellow, Global Development and Environment Institute, Tufts University, Boston MA.
Week 1 30 jAn Institutional Political Economy
It is sometimes imagined that the economy is a system of markets when it is in fact a system of institutions (i.e. formal and informal rules). Whilst the market is definitely a central economic institution, it is necessarily nested inside other institutions and these other institutions exert a profound influence over how markets work. Lectures, readings and discussions will introduce you to key ideas in institutional political economy and its key figures such as Thorstein Veblen, J K Galbraith (pictured left) and Gunnar Myrdal.
Lecture Recordings
Readings
- Reading 1 Stretton. H (1999) Economics: A New Introduction. UNSW Press Chapter 10 Institutional Studies of Economic Development.This is an excellent and accessible introduction to institutionalist analysis.
- Galbraith, James (2009) The Predator State: How Conservatives Abandoned the Free Market and Why Liberal Should Too. Chapter 12 The Need for Planning. This reading provides an excellent example of how institutionalists think about markets, the state, and the relationship between the two. If you are interested in policymaking this should work for you.
Discussion Questions
Week 2 6 feB Behavioural Economics
Behavioural economics brings psychological insights and methods into economic decision making. A major finding of this school of thought is that our decision making is often surprisingly poor. We consider what (if any) policy implications result from our regularly poor decisions, including contemplating the use of behavioural ‘nudges.’ We also contemplate how behavioural economics might (and might not) improve various real world outcomes.
Week 3 13 fEB Austrian Economics
This week we look at the ideas of the often strongly libertarian Austrian School. Scholars working in this tradition include Menger, Mises and Hayek. We examine and evaluate the many interesting, important and influential ideas associated with this school. We also examine whether all the ideas of this school of thought are inherently libertarian or whether some of them might also be relevant and useful to those of a more progressive persuasion.
Week 4 20 feB Neoclassical Economics Part 1
Neoclassical economics (sometimes called ‘mainstream economics’ or ‘traditional economics’) is something every political economist needs a working knowledge of. The ideas are presented in an accessible manner by focusing on understanding and evaluating the underlying ideas, rather than getting bogged down in technical or mathematical details. If you are seeking to better understand (and better evaluate) the way economists make sense of the world, this material should be both interesting and useful to you.
Week 5 27 feb Neoclassical Economics Part 2
Neoclassical economics (sometimes called ‘mainstream economics’ or ‘traditional economics’) is something every political economist needs a working knowledge of. The ideas are presented in an accessible manner by focusing on understanding and evaluating the underlying ideas, rather than getting bogged down in technical or mathematical details. If you are seeking to better understand (and better evaluate) the way economists make sense of the world, this material should be both interesting and useful to you.
Week 6 6 mARCH Post Keynesian Political Economy
We look at the often badly misunderstood ideas of J M Keynes, particularly his very important ideas concerning the fundamental uncertainty of the future, and the role of money in a market economy. We explain the difference between the Keynes as understood in the economic mainstream versus the ideas as they are expressed in his own writings. We also contemplate the role that Keynesian ideas could play in confronting contemporary challenges such as economic instability, stagnation, inequality and environmental constraint. We also examine the role of other leading figures in the Post Keynesian school such as Michael Kalecki and Joan Robinson (pictured left).
Week 7 13 mARCH Radical Political Economy
Like Keynes, Marx is often badly misunderstood and misrepresented (as much by some of his supporters as by his critics). In this week we look at the actual ideas of Marx. We contemplate the strengths and weaknesses of Marxian analysis, evaluate its relevance to contemporary issues and challenges. Whether you are a fan, critical or in-between, you should find a scholarly examination of Marx’s key ideas illuminating and stimulating.
Week 8 20 mARCH Georgist Political Economy
Whilst classical political economists such as David Ricardo viewed land as a distinct factor of production with special characteristics, it is treated more generically in orthodox economic theory where it is usually either subsumed into capital or ignored all together. In this final week of term will focus on the ideas of Henry George as means to think through the political economy of land. The analysis examines Georgist ideas in their own right, but also examines how Georgist ideas do, don’t, or might potentially link with other schools of political economy such as classical political economy, Marxian economics, institutionalism and Post-Keynesianism.
Week 9 27 mARCH Feminist Political Economy
Feminist political economists (or feminist economists) seek to illuminate and remedy recurrent and often quite serious gender blind-spots in economic and social analysis to thereby produce better economic inquiry and policy analysis for all. We will examine the key ideas in feminist political economy and look at the policy implications of its analysis.
Week 10 3 aPRIL Ecological EconomICS
Ecological political economy is an interdisciplinary or transdisciplinary area of knowledge whose foundation stone is the recognition that the economic system sits inside a social system which in turn needs to exist inside the opportunities and constraints of an environmental system. We examine the key ideas and figures in this school. We give particular focus to evaluating de-growth versus steady-state versus green-growth economic systems.