Evolution of Western Economic Thought and Its Impact

Author: Hu Daiguang, Editor-in-Chief
Publisher:
Publishing Date: 1999-02-01
Features: The book begins with the "Introduction," which summarizes and discusses the "Six Revolutions in the History of Western Economic Thought" and their impact. Then, Chapters 2 to 4 respectively provide a detailed review of the Marginal Revolution and its influence, the Keynesian Revolution and the debates it sparked, as well as the challenge of the modern classical school to Keynesianism. In the 1980s and 1990s, Western macroeconomics saw new developments, among which two theories deserve special attention: the non-equilibrium economic theory and the equilibrium credit rationing theory. These theories offer valuable references, lessons, and potential applications for the establishment and improvement of China's socialist market economy. Therefore, we have dedicated two chapters (Chapters 5 and 6) for a comprehensive and systematic discussion and analysis, highlighting their correct application in China.
The operation of any market economy cannot be separated from the connection of financial markets. The fluctuations of interest rates and exchange rates play a significant role in national economic development. Thus, this book dedicates separate chapters (Chapters 7 and 8) to introduce William F. Sharpe's Capital Asset Pricing Model and the new characteristics of exchange rate fluctuations since the 1980s, aiming to draw insights for better coordination of monetary and exchange rate policies to promote the healthy development of China's socialist market economy.
Over the past 20 years, the evolution of Western economics has given rise to a branch: New Institutional Economics. We have selected and translated its key components, specifically property rights, economic organization, and institutional change theory, while also providing detailed discussions and objective evaluations of Buchanan's (James M. Buchanan) state theory, which emerged in the 1980s (see Chapters 9 and 10). We clearly identify the implications of their theories for China's economic system reform and how to draw lessons from them.
Finally, we conclude the book with two chapters (Chapters 11 and 12): "The Evolution and Recent Development of Economic Long-Cycle Theory" and "On the Reassessment of Western Literature and Its Implications for Market Economy and Our Reflections." These chapters present comprehensive research themes.