In the framework of a critical illustration of the contemporary history of economics, this chapter provides a brief exposition of the main characteristics of the Classical and the marginalist approaches, including the notions of self-interest and felicific calculus and Marx’s thought

In the framework of a critical illustration of the contemporary history of economics, this chapter provides an illustration of Sraffa’s thought, from his first writings on money and banking to his book on “Production of commodities by means of commodities”. His friendship with and cultural relations with Gramsci, Wittgenstein, Keynes are considered, as well as his critique of Marshall’s theory of the firm and the notion of the representative firm. His proposal of a theory of imperfect competition and the reasons for its abandonment are illustrated. The role of the critical edition of Ricardo’s writings for the reconstruction of the Classical approach is stressed. An interpretation is provided for Sraffa’s contribution to the Classical theory of prices and distribution and for his critique to the marginalist approach.

In the framework of a critical illustration of the contemporary history of economics, this chapter illustrates the various streams of neo-liberalism, from Ordoliberalism to Mises’s new Austrian school and Hicks’s Austrian capital theory, from Friedman and the Chicago school to rational expectations and supply-side economics, from the public choice school to political economics, from the Mount Pélerin Society to the Washington consensus and the idea of expansionary austerity. Step by step, the feeble theoretical and conceptual foundations of this set of theories are critically discussed.

Polanyi–s and Galbraith–s analyses of very long-run changes in, and main characteristics of, economic and social structures. It is pointed out how neo-institutionalism is grounded in the traditional marginalist approach, thus sharing its limits, while the evolutionary and institutional approaches, with strong connections among them, are born in counterposition to the marginalist approach. Their contributions, in particular those to the analysis of technical change, are then illustrated. With reference mainly to Hirschman, the cultural element in development economics is recalled. A final section illustrates the –varieties of capitalism–.

In the framework of a critical illustration of the contemporary history of economics, this chapter recalls the foundations of utilitarianism and the ethics of consequences and provides a survey of research on income inequalities. Then it provides a critical history of welfare economics. It illustrates Sen’s notion of capabilities. It opposes conservative, revolutionary and reformist views on the evolution of capitalism and, finally, discusses a rather unusual topic, the economists’ ethics.

In the framework of a critical illustration of the contemporary history of economics, this chapter provides an (original) illustration of Hayek’s thought: his formative years, his contributions to the theory of the trade cycle and the theory of capital and the subsequent debates with Sraffa and Kaldor, his theory of the spontaneous order and of the market as a mechanism of knowledge diffusion, his political individualism and the similarities/differences to the notions of methodological individualism , liberism and liberalism, his thesis on the denationalization of money.

In the framework of a critical illustration of the contemporary history of economics, this chapter provides an (original) illustration of Hayek’s thought: his formative years, his contributions to the theory of the trade cycle and the theory of capital and the subsequent debates with Sraffa and Kaldor, his theory of the spontaneous order and of the market as a mechanism of knowledge diffusion, his political individualism and the similarities to and differences from the notions of methodological individualism, liberism and liberalism, his thesis on the denationalization of money.

In the framework of a critical illustration of the contemporary history of economics, this chapter provides an assessment of the development of microeconomics since von Neumann’s and Morgenstern’s theory of expected utility, including the developments of general equilibrium theory, reproposals by the Chicago school and others of the Marshallian theory, Samuelson’s Marshallian-Walrasian synthesis, the new theories of the irm (oligopoly and barriers to entry, contestable markets and others), growth and limits of game theory.

In the framework of a critical illustration of the contemporary history of economics, this chapter presents a general picture of developments in monetary theory and in the theory of financial markets, beginning with the monetarist approach. The transition in the policy field from domination of the Keynesian to domination of the monetarist approach is then illustrated. The theory of efficient financial markets is then considered, from the Modigliani–Miller theorem to Fama’s contribution. A section is devoted to various issues in the theory of financial markets and institutions, as an introduction to Minsky’s ‘truly Keynesian’ analysis of financial markets and their fragility as the repeated origin of crises. Finally, Minsky's idea of a new stage in the development of capitalism, the so-called money managers capitalism, is recalled.

In the framework of a critical illustration of the contemporary history of economics, this chapter discusses post-Keynesian macroeconomics: the Cambridge tradition and the new Cambridge school. Some of the main protagonists are considered separately: Kalecki, Kaldor Kahn, Joan Robinson and others. The debate on the interpretations of Keynes is then recalled, as well as the debate on the theory of capital and the critique of the marginalist value theory. Kaldor’s and Pasinetti’s post–Keynesian (or ‘Cambridge’) theory of distribution is then illustrated, as well as the developments of the different ‘Sraffian schools’ with the aim of constructing a renewed classical approach. In this direction, some suggestions for a classical–Keynesian synthesis are provided.