An Introduction to Modern Economics Joan Robinson lmf"rirus Pro/e)'SOf ul EnmOfllM )
Acknowledgements .v Preface
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xvi
John Eatwell fellow 01 Trinit)' Collt'J.:f'
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Cambridge
Ia) Problems and functions of I'<"<>nom ic philosophy Ib) Metaphysics and science 3
IIefoft Adam Smith 5 5 la) Effectiye demand 1M Money and weakh 6 Ie) The last Mercantilist 7 1.2 The Physiocrats 8 la) Feudalism 8 !hI Metaphysical argument
2.4 Enective Demand (a) Say's law 23
1.1 leading Ideas
2
Classical
PoIhIc~1
23
(b) Malth"s' theory of ' gluts' 25 2.S. Marx 27 (a) Social relations and the creation 01 (b) Value and prices 29 (c) The cap~alist epoch 30 Appendix: Marx's Notation 31
9
Economy n The Neocla..ical Era
2.1 fundamental Ideas 12 (a) A class analysis 12 (b) Otpitat as ar> advance 14 (e) The determination of ' surplus' (d) Dynamic analysis 15 2.2 The Accumulation of Wealth 15 Ia) The division of labour 16 Ib) The factory S¥stem 16 2.3 Distribution and Prices 17 (0) Ricardian .r..tribution theory Ib) Prices 19 (e) Produced commodities 21 (d) An·invariable standard 22
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3.1 Victo,y of the New 5-chool J.i FI.n<k:T, ~nt~lldeas 35 ta: Ut'ility 3b (b; 'equilibrium 37 (c) factors .of production
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34
38 (ell ' The rcw~rd of waitin/!' :111 .l3 Priles and Distnbuti..n :19 (.-v Scarcity 39 (b) ' Marginal productivity ' 40 (c) Normal profits 42 3.4 Effective Demand 43 3.5 Cr~ics 44 fa) A Marxist 44 (b) A Populist 45(e) Marx upside down 46 3.6 The Keynesian Revolution 46 (a! Laissez-faire 46 (b) Time 48 (e) Prices 49 (d) Savings and investment s.o (e) The rate of interest 50 (f) Revolution and restoration 51
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Introduction
(;rowth: Finns, 1ndusIries, and Nations 9 .1 Behaviour of Firms
InlernalionalllAWK:es
53
55
245 245
(al The foreign balance 246 (b) Home activity 246 k) Accumulation 247 (d) The capital ac count 247 (e) The balancing factor 248 (f) The balance of payments (g) International money 249
Armam €' nt~
29S USA 295 (b) UK a nd france 297 (e) West Germany and Japan 297 1.2 Employment Policy 296 (a) Confidence 298 Ib) Fiscal policy 299 (c) Interest rates and investment' 299 (d) Monetary boosters and dampers 300 (e) Stop-go 301 1.3 Open Economies 301 la) The balance of payment. 301 (b) Competitive success 303 (c) . Compet~ive weak"ess 304 1.4 Growth 306 (al Economic miracles 306 Ih) 1"llatiun :107 (e) roverty in the midst oi plel1ty :108 ta) Migration 309 (e) Pollution 309 I[) What nowl 311 (a)
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232
Rentiers 233 Th.. process of growth 233 The te<chnostrunure 214 'Maximi<ing profits' 235 (e) The profit criterion 236 (f) The authority of finance 236 9.2 Industries 237 (a) Demarcation· 237 (h) Supplies 238 (e) Markets 239 9.3 National Policy 246 (a) Free-trade theory and protectionist (b) Beggar-my-neighbour 241 (c) Rules of the game 24t Id) Planned trade 242 9.4 The Neoclassical Model 242
10.1 Trade of a Region
Method 53 (a) Models 53 (b) Simplifications (e) Warnings 5-6 Synopsis 5-6
1.1
(a) (h) Id (d)
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Analysis
Introduction 293 C~pit~list Nations 295
In t.i'luidity 211 Igl The basis ..f crt<dit 122 (h) The supply of money 223 8.2 The Market for Placements 224 (a) Bonds and shares 224 (b) The Stock Exchange 225 (e) Instability 226 8.3 Interest Rates 227 (a) Long-term ",tes 227 (b) Stock and flOw 227 (e) Monetary policy 226 (d) The economisfs day dream 229 8.4 'Monetary Theory ' 229
2
Socialist SI~tes
313
2.1 Another Set of Problems 313(a) Employment 313 Ib) International trade 314 (c) Innation 315 (d) Public finance 315 Ie) Alienation 316 2.2 Agriculture 317 (a) Extracting the surplus 317 (b) The terms o( trade 316 Icl Politic,11 prices J1fl 2.. \ Pmjl!'clt'n Refmm~ (,l) Wholl
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319
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