The ‘classical’ approach to economic problems, which can be traced back to Adam Smith and David Ricardo, has seen a remarkable revival in recent years. The essays in this collection argue that this classical approach holds the key to an explanation of important present-day economic phenomena. Focusing on the analytical potentialities of classical economics, the contributors illustrate how an important element of understanding its approach consists of developing and using its explanatory power.
The study opens with a clarification of what is meant by ‘classical’ economics; modern methods of economic analysis are related to the works of the classical economists. Then follow chapters dealing with the problem of economic growth and foreign trade. Both the von Neumann growth model and the ‘new’ theories of endogenous growth are shown to belong firmly to the classical tradition. The contributors examine the contribution of Piero Sraffa and clarify some of the more difficult aspects of his analysis. The (un)importance of the labour theory of value in classical thinking is expounded. The work closes with some observations on the critique of neo-classical theory.
