This paper traces the development of economic theory up till ‚Äėeconomic rationalism‚Äô became a household name. At each developmental stage factors leading to changes in economic theory are examined and leading protagonists and antagonists identified. Economic systems such as Mercantilism; classical economics; marginalism and neoclassical economics are embraced.
The advance of neoclassical liberalism was subjected to strong pressure during the Great Depression and the Second World War and this led to reliance on macroeconomic theory as explained by John Maynard Keynes. An economic time line has been developed and placed in the appendix of the full paper.
Keywords: Economic rationalism; neoclassical economics; classical economics; Keynesian economics; Mercantilism; liberalism or libertarianism
10th QMOD Conference. Quality Management and Organiqatinal Development. Our Dreams of Excellence; 18-20 June; 2007 in Helsingborg; Sweden
AQUINAS; T. (1955/1929) Summa Theologiae; Madrid; La Editoria Catholica (English trans. The `Summa Theologica’ of St Thomas Aquinas; Fathers of the English Dominican Province; London; Burns; Oates & Washborne; 1929).
BRUNER; J. (2007) John Maynard Keynes. Sparticus Educational Website; Retrieved from http://www.spartacus.schoolnet.co.uk/TUkeynes.htm on 15 February 2007.
CANTILLON; R. (1931) Essai Sur La Nature Du Commerce En G√©n√©ral; edited and translated by Henry Higgs. New York; Augustus M. Kelley.
CARROLL; J. (1992) Economic Rationalism and its Consequences; in John Carroll and Robert Manne (editors). Shutdown: The Failure of Economic Rationalism and How to Rescue Australia. Melbourne; The Text Publishing Company : pp. 7-26.
CLARNETTE; W. (1993) The churches and economic rationalism; in Chris James; Chris Jones and Andrew Norton (eds). A Defence of Economic Rationalism. Sydney; Allen & Unwin: pp. 168 - 175.
COLEMAN; W. & HAGGER; A. ( 2001) Exasperating Calculators: the Rage Over Economic Rationalism and the Campaign Against Australian Economists; Sydney; Macleay Press.
HAYEK; F. A. (1940) Reviewed Work: How to Pay for the War by J. M. Keynes. The Economic Journal; Vol. 50; No. 198/199 (Jun. - Sep.; 1940).
HAYEK; F. A. (1944) The Road to Serfdom; London; Routledge Press
HAYEK; F. A. (1994) Introduction: Carl Menger. IN SPADARO; L. M. (Ed.) Principles of Economics. Grove City; PA; Libertarian Press; Online version by the Ludwig Von Mises Institute; 2004; pp.11-36; Retrieved from http://www.mises.org/etexts/menger/ednote.asp on 10 February 2007.
HIGGS; H. (1892) Cantillon’s Place in Economics. Quarterly Journal of Economics; Vol. 6; 436-456.
HUNTER; V. (1996) Reviewed Work: Xenophon "Oeconomicus": A Social and Historical Commentary by Sarah H. Pomeroy. Classical Philology; Vol. 91 No.2. (Apr.; 1996) 184-189.
JEVONS; W. S. (1871/1888) The Theory of Political Economy. London; Macmillan and Co. and Library of Economics and Liberty; Third Edition 1888; Retrieved from http://www.econlib.org/LIBRARY/YPDBooks/Jevons/jvnPE1.html on 15 January 2007
JEVONS; W. S. (1881) Richard Cantillon and the Nationality of Political Economy. The Contemporary Review Vol. 39; (January 1881); 61-80.
KEYNES; J. M. (1919) The Economic Consequences of the Peace. Retrieved from http://socserv2.socsci.mcmaster.ca/econ/ugcm/3ll3/keynes/peace.htm on 15 February 2007.
KEYNES; J. M. (1933) The Means to Prosperity. New York; Harcourt Brace.
KEYNES; J. M. (1936/1970) The General Theory of Employment Interest and Money; London; Macmillan; St Martin’s Press.
KEYNES; J. N. (1890/1999) The Scope and Method of Political Economy; Kitchener; Published by Botoche Books in 1999.
MACFARLANE; I. (2006) Boyer Lectures 2006. Australian Broadcasting Commission Transcripts. Radio National; Australian Broadcasting Commission
MALTHUS; T. R. (1814) Observations on the Effects of the Corn Laws; and of a Rise or Fall in the Price of Corn on the Agriculture and General Wealth of the Country.
IN HAY; R. (Ed.) The Avalon Project at Yale Law School: The Corn Laws by T. R. Malthus. London; J. Johnson and Co. Retrieved from http://www.yale.edu/lawweb/avalon/econ/corframe.htm on 30 January 2007.
MARSHALL; A. (1890/1961) Principles of economics; an introductory volume; Eighth edition (1961); London; Macmillan.
MENGER; C. (1994/1871) Principles of Economics; Grove City; PA; Libertarian Press; Online Version by the Ludwig Mises Institute; 2004; Retrieved from http://www.mises.org/etexts/menger/ednote.asp on 10 February 2007.
NEVILE; J. W. (1993) Economic Rationalism: On Throwing Out The Bathwater; But Saving The Baby; the 1993 Giblin Lecture;. ANZAAS Conference. Perth; Working Paper No. 3; Sydney; New College Institute for Values Research; the University of NSW.
POMEROY; S. B. (1994) Xenophon "Oeconomicus": A Social and Historical Commentary; Oxford; Clarendon Press.
PUSEY; M. (1991) Economic Rationalism in Canberra: A Nation-Building State Changes Its Mind; Cambridge; Cambridge University Press.
RICARDO; D. (1815) An Essay on Profits: An Essay on the Influence of a low Price of Corn on the Profits of Stock ...... London; John Murray; Albemarle Street; Retrieved from http://socserv.mcmaster.ca/econ/ugcm/3ll3/ricardo/profits.txt on 10 February 2007.
RICARDO; D. (1821) On the Principles of Political Economy and Taxation; Third Edition; First Published in 1817. John Murray; Library of Economics and Liberty; Retrieved from http://www.econlib.org/LIBRARY/Ricardo/ricP1.htm on 10 February 2007.
ROBINSON; J. (1956/1971) The Accumulation of Capital; London; Macmillan.
ROTHBARD; M. N. (1995) Economic Thought before Adam Smith. Vol. 1: An Austrian Perspective on the History of Economic Thought; Cheltenham; U.K.; Edward Elgar.
SAY; J. B. (1803) Trait√© d‚Äô√©conomie politique: ou; simple exposition de la mani√®re dont se forment; se distribuent et se consomment les richesses; Translation: Treatise on Political Economy: On the Production; Distribution and Consumption of Wealth; New York; Kelley: 1963 (1st edition: 1827).
SMITH; A. (1976 ) An Inquiry into the Nature and Causes of the Wealth of Nations; edited by R.H. Campbell & A.S. Skinner; Oxford; Clarendon Press.
STEINER; P. (1999) J-B Say and the Political Economy of His Time: A Quantitative Approach. Journal of the History of Economic Thought Vol. 21; No. 4; 349- 368.
TAWNEY; R. H. (1938 ) Religion and the Rise of Capitalism; West Drayton; Penguin.
THORNTON; M. (2007) The Origin of Economic Theory: A Portrait of Richard Cantillon (1680-1734). The Ludwig von Mises Institute; Retrieved from http://www.mises.org/content/cantillon.asp#; 16 January 2007.
VON MISES; L. (1984) The Historical Setting of the Austrian School of Economics. Auburn; Alabama; Ludwig von Mises Institute. Retrieved from http://www.mises.org/hsofase/ch1sec1.asp on 13 February 2007.
WALKER; D. L. (2007) Austrian Economics. The Concise Encycopedia of Economics. Retrieved from http://www.econlib.org/library/enc/AustrianEconomics.html on 8 February 2007.
WALRAS; L. (1874) Elements of pure economics : or; The theory of social wealth Translation of El√©ments d‚Äô√©conomie politique pure. Translated by William Jaff√©. Published for the American Economic Association and the Royal Economic Society by R. D. Irwin; [1965 c1954].
WATSON; A. S. (1979) Rural industries. IN PATIENCE; A. & HEAD; R. (Eds.) From Whitlam to Fraser: Reform and Reaction in Australian Politics. Melbourne; Oxford University Press.
WEBER; M. ([1904-5]1971) The Protestant Ethic and the Spirit of Capitalism; (Translated by Talcott Parsons with a Foreward by R.H. Tawney) London; Unwin University Books.
WITHERS; G. (1986) Economic Rationalism and wage fixation. Economic Papers; 5.
XENOPHON (c400BC) The Economist (Oeconomicus). Translation by H. G. Dakyns; Academy Reading Room: Retrieved from http://evansexperientialism. freewebspace.com/xenophon_economist.htm on 19 January 2007.