Understanding 'Classical' Economics

The "classical" approach to economic problems, which can be traced back to Adam Smith and David Ricardo, has been revived 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. The study opens with a clarification of what is meant by "classical" economics and examines how modern methods of economic analysis are related to the works of the classical economists. Chapters deal with the problem of economic growth and foreign trade. Contributors attempt to show that both the von Neumann growth model and the "new" theories of endogenous growth belong to the classical tradition. They also consider the work of Piero Saffra and clarify some of the more difficult aspects of his analysis. The (un)importance of the labour theory of value in classical thinking is reviewed and the work closes with observations on the critique of classical theory.