History of Economic Thought

The history of economic thought explores how ideas about economics have evolved over time, influenced by philosophers and historical contexts. Early thinkers like Adam Smith emphasized free markets and individual self-interest. In contrast, Karl Marx critiqued capitalism and focused on class struggle. The 20th century brought diverse theories, including Keynesian economics, which advocates for government intervention during economic downturns, and monetarism, led by Milton Friedman, emphasizing the role of money supply. Today, economics blends with psychology and sociology, reflecting a deeper understanding of human behavior and societal impacts, highlighting the complex nature of economic systems.