Bhagirath Baria

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The Author of this blog has keen interest in understanding Economics and its implications on the Individual and the Economy as a whole. Has been writing articles and analysis of issues that may skip general observation, but exert deep influence on people's lives and their decisions. Discussions and Debates related to conventional as well as non-conventional Economics is done here. The author of this blog doesn't classify himself to any particular School of thought in Economics. He is tilted toward Mainstream Economics, though has keen interest in a few Heterodox schools too. Wishing all the readers a truly enriching experience.

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Friday, September 06, 2013

Note on Absolutist vs. Relativist interpretation of Economic History

Two works of History of Economic Thought provide very authoritative viewpoint of looking at the History of Economic thought. They are:

1. Economic Theory in Retrospect by Mark Blaug, and;
2  History of Economic Thought by E.K. Hunt and Mark Lautsienheiser.

The fomer work classifies History of Economic thought into two competing Interpretative frameworks:

1. Absolutist interpretation.
2. Relativist interpretation.

Absolutist interpretation abstracts away from Historical conditions- primarily concerned with the development of theoretical systems of various Economists, their criticism and emergence of better theories. It is therefore, it appears, is concerned with the development of economic principles irrespective of the ideological elements affecting them. Mark Blaug also explains that it is possible to refine the various economic theories and focus on the non-ideological aspects of the theory.

Hence, each theoretical system by an Economist will have at least following two elements:

1. Ideological- reflecting the Social reality around- Politics, Culture, Science & Technology, and other such variables. Hence, the theorist would have been affected by such variables around her which her theory would inevitably express.

2. Scientific- reflecting the maxim- 'Knowledge for Knowledge's sake'. These elements of the theorist would be focused solely on developing previous theories, criticising them if required, and proposing better, much more real theories- nearer to truth. These aspects woukd be solely scientific and shall be independent of the historical conditions.

The former of the above listed works follows this methodology of interpreting Economic History.

In the next post we'll see how the latter work- by Hunt and Lautsenheiser interprets the history of economic thought.

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