History of Economics as a science

The first philosophical reflections on economy date back to ancient times. Aristotle addressed some problems of economics mainly as problems of a household management. Scholastic philosophers addressed ethnical questions concerning economy behavior and then condemned usury – taking of interest on money. Then, with the increasing importance trade and of nation-states in the early modern period, mercantilist philosophers addressed questions concerning the balance of the trade and regulations of the currency. Only in the work of physiocrats and especially of Adam Smith` do scholars begin to think of economy as an object of study, with its own participles and laws.

The economy as a distinct subject dates back only to the 18th century. The 18th century philosophers wrote in the shadow of Newton’s accomplishments. David Home hoped to develop a science of mind and society in the image of Newton’s science of the solar system. To the end, he seeks out general laws of individual thought and action and hope to find some large-scale orderly relations. Traces the rise in prices and the temporary increase in economic activity that follow an increase in currency to the perceptions and actions of individuals who first spend the additional currency.

The first systematic work of economics was Adam Smith’s “ An Inquiry into the Nature and Causes of the Wealth of Nations “. He also made an implication probably the foundation of all social sciences. That implication is that the social, aggregative implications of individual choices are often unintended. When people spend their additional gold imported from abroad, they don’t intend to raise the price-level, but that’s what they do anyway. This can be an object of scientific investigation.


The most important economists of the past



Adam Smith (1723-1790)
Adam Smith was Scottish political economist and philosopher. He was the most significant protagonist of Early Classical school which was called also Smithians. He was working at Glasgow University where his lectures contained ethics, rethoric and political economy. In 1759 he published The Theory of Moral Sentiments where many of his lectures were covered. In this book he expressed concern with the explanation of moral approval and disapproval. In 1763 he resigned his professorship and became a tutor to a young duke. Together with his pupil he was travelling in France where he met many intellectual leaders.