Classical economics school presentation. Presentation on economics on the topic “Classical Political Economy. General characteristics and stages of development. A. Smith and D. Ricardo "free download. Classical political economy

Slide 2

2.4.3. The law of markets and the theory of "three factors of production" by J. B. Say. 2.4.1. Methodological principles and basic provisions of the theory of Karl Marx. 2.4.2. T. Malthus's theories. 2.4.4. Historical school in Germany - as an alternative to the classics.

Slide 3

Karl Marx (1818-1883) Karl Marx Lawyer by education, journalist and professional revolutionary “Marxism is too valuable to be left to Marxists alone” P. Samuelson

Slide 4

Historical conditions for the emergence of Marxism The victory of capitalism in Europe (40s of the XIX century) Spontaneous workers' revolts Changing the class structure of society Main classes: bourgeoisie proletariat 1831 - uprising of Lyons weavers in France, 30-40s. - Chartist movement in England, 1840 - uprising of Silesian weavers in Germany.

Slide 5

Three sources of Marxism

Utopian socialism (Saint-Simon, Fourier, Owen) Classical bourgeois political economy (Smith and Ricardo) German philosophy (Hegel and Feuerbach)

Slide 6

Dialectical materialism Subject and method of Marxism Subject Method Analysis of the sphere of production, relations of production Revealing the law of movement and death of capitalism. Study of relations between people and the property relations that define them.

Slide 7

"Outlines for the Critique of Political Economy" (1843) "The Holy Family, or Critique of Critical Criticism" (1844) "The Poverty of Philosophy" (1847) The main works of K. Marx and F. Engels "On the Critique of Political Economy" (1859) "Capital" (1867-1905) "Criticism of the Gotha Program" (1875)

Slide 8

Analysis of the capital production process Subject "The best in my book: the dual nature of labor, the study of surplus value, regardless of its special forms." Karl Marx Characteristics of "Capital" I volume (1867)

Slide 9

Characteristics of "Capital" (I volume)

The foundations of the labor theory of value are presented The process of production of surplus value is analyzed The characteristics of the essence and basic forms are given. wages The process of capital accumulation is analyzed. The operation of the law of value is shown. The analysis of the historical process of development of exchange and forms of value is carried out. The basic economic law of capitalism, the law of surplus value, is formulated. K. Marx showed how the "dazzling" monetary form appeared, the "secret" of money was revealed. "The economic system of Karl Marx is distinguished by an iron logic, if you accept the starting point, then you are forced to agree with the conceptual conclusions." Boehm-Bawerk

Slide 10

Analysis of the process of circulation of capital Subject Characteristics of "Capital" II volume (1885)

Slide 11

Characteristics of "Capital" (II volume)

The reproduction of individual capital is analyzed The conditions for the unhindered implementation of social capital are formulated The problem of the reproduction and circulation of all social capital is analyzed The study of fixed and circulating capital is developed The stages of capital movement are shown monetary productive commodity The rate of capital turnover Expanded reproduction schemes - the first model of economic growth

Slide 12

Analysis of production and Circulation taken as a whole Subject Characteristics of "Capital" Volume III (1894) "... in the influence of different capitals on each other, in competition and in the everyday consciousness of the agents of production themselves." K. Marx

Slide 13

Characteristics of "Capital" (Volume III)

The problem of combining the operation of the law of value with obtaining an equal rate of return on capital is given. Criticism of the "triune formula" is given. The doctrine of absolute rent is created and the source of differential rent is found. Rent - land Wages are determined by labor

Slide 14

Characteristics of "Capital" Volume IV (1905) Provides a complete picture of the development of bourgeois political economy from its inception to its transformation into a petty bourgeois

Slide 15

Thomas Robert Malthus (1766-1834) T. Malthus Pupil of A. Smith, friend of D. Ricardo Defender of the interests of the agricultural aristocracy Priest, professor of the department modern history and Political Economy College East India Company Born in England, the son of a landowner 2.4.2. T. Malthus's theories.

Slide 16

The main works of T. Malthus

"Experience on the law of population in connection with the future improvement of society" (1798) "Research on the nature and growth of rent" (1815) "Principles of Political Economy" (1820)

Slide 17

Theoretical provisions of T. Malthus

Value and income distribution Implementation The law of population Denied the equality of supply and demand, pointed out ways to increase demand Supporter of the theory of production costs The population is surplus in comparison with the goods of life it needs Productive labor Labor in the sphere of material production

Slide 18

J.Say Author of theories: subjective utility, three factors of production, realization. Economist and Entrepreneur Born in Lyon, the son of a merchant 2.4.3. The law of markets and the theory of "three factors of production" by J. B. Say. Commentator and systematizer of A. Smith's ideas Representative of the French bourgeoisie Member of the St. Petersburg Academy of Sciences Jean Baptiste Say (1767-1832)

Slide 19

Works by J. B. Say

"A treatise on political economy or a simple statement of the way in which wealth is formed, distributed and consumed" (1803) "Catechism of Political Economy" (1815) "A Course in Political Economy" (6 volumes) (1828-1830)

Slide 20

2.4.3. The law of markets and the theory of "three factors of production" by J. B. Say. Served as the basis of the neoclassical direction in political economy "Say's Law": Any sale of goods is at the same time a purchase, so the implementation process must be carried out smoothly. "Theory of three factors": Value (utility) is created - by labor, capital, land. Conclusions: There can be no general overproduction, therefore it is necessary to expand production. The prosperity of one industry is favorable for the prosperity of others. Advocated for free trade and condemned protectionism. He demanded a "cheap state" and its minimal intervention in the economy. Labor creates wages Capital creates profit Land creates rent

View all slides

1 slide

LECTURE 26 Classical Political Economy. general characteristics and stages of development. A. Smith and D. Ricardo

2 slide

The classical school: origin, development, macroeconomic theories In the 17th-18th centuries, capitalist relations were established in European countries, and this became the starting point for the onset of conditions of "complete laissez faire" - economic liberalism. Since that time, a new theoretical school of economic thought was born, which was called classical political economy. After the coup d'etat of 1688, England turned into a constitutional monarchy, a compromise was finally reached between the landowners and the bourgeoisie, but the mercantilist ideology of the British government had not yet been overcome: the state still protected the monopolies, imposed import duties and export bonuses, and regulated guild activities. by limiting the number of employees in each profession. Changing economic policy required a new ideology. This task was undertaken by brilliant economists, the founders of classical political economy, the Englishman William Petty (1623-1687) and the Frenchman Pierre de Boisguillebert (1646-1714). These authors condemned the protectionist system that constrained the freedom of entrepreneurship, they emphasized the priority importance of liberal economic principles in creating national wealth in the sphere of material production.

3 slide

Representatives of the new school were also distinguished by the fact that they re-formulated the method and subject of study of economic theory. As a subject of study, the "classics" put forward the sphere of production. The method of study and economic analysis acquired new features through the introduction of the latest methodological techniques, which quite successfully provided deep analytical results, a lesser degree of empiricism. Classical economists saw the task of economic science in studying not really occurring events, but only those forces that in some, not quite understandable way predetermined the emergence of real phenomena... Classical economists have emphasized that the conclusions of economics are ultimately based on postulates drawn equally from observable "laws of production" and subjective introspection. K. Marx believed that the "classics", in the works of their best authors A. Smith and D. Ricardo, absolutely did not allow slipping on the surface of economic phenomena. According to him, "the classical school investigated the relations of production in bourgeois society." Classical political economy in its teachings investigated the analysis of the conditions of free economic activity only the capitalist system.

4 slide

There are four main stages in the development of classical political economy. First stage. It begins at the turn of the XVII - early XVIII centuries, when in England, thanks to the work of W. Petty and in France - P. Boisguillebert, signs began to form, the beginnings of a new, alternative to mercantilism, doctrine, which would later be called classical political economy. In their works, the first attempts were made to costly interpretations of the value of goods and services (by taking into account the amount of labor and labor spent in the production process). They emphasized the priority importance of liberal economic principles in the creation of national (non-monetary) wealth in the sphere of material production.

5 slide

Second phase. This period is wholly and completely attached to the name and work of the great economist Adam Smith, whose ingenious creations became the most significant achievements of economic science throughout the last third of the XVIII century. his theoretical research is largely based on modern concepts of a product, its properties, money, wages, profits, capital, etc. The third stage. The chronological framework of this stage covers the entire first half of the 19th century, during which in developed countries, especially in England and France, there was a transition from manufacturing to factories, i.e. to machine, industrial production. During this period such economists as D. Ricardo, T. Malthus, N. Senior, Zh.B. Say, F. Bastiat, and others, each of these authors, following the "father" of classical political economy, Adam Smith, left very noticeable traces in the history of economic thought. Stage four. The last period of classical political economy falls on the second half of the 19th century. and is conditioned by the works of J. S. Mill and K. Marx, who took it upon themselves to codify the best achievements of the "classical school". At the fourth stage, the formation of a new, more progressive direction of economic thought - "neoclassical economic theory", has already begun. However, the popularity of the theoretical views of the "classics" remained quite impressive, because they sympathized with the working class and were drawn to socialism and reforms.

6 slide

A. Smith and D. Ricardo The merit of Adam Smith in the formation of classical political economy lies in the fact that he codified it and formed the basis for future generations. Back in The Theory of Moral Sentiments, he introduced the famous principle of the "invisible hand" and continued to develop his ideas in "Investigation of the Nature and Causes of the Wealth of Nations". Here Smith devoted himself entirely to the study of the development of the economy in society and ways to improve its welfare, while applying completely new methodological methods of analysis and supporting the concept of economic liberalism. He recognized the importance of the laws in force in market economy and advocated free competition. He argued that the fate of every economic entity is predetermined, and thrift is the main factor in increasing profits. Key ideas: competition theory, principles of market regulation, labor theory value and the study of factors of production, the study of money as a medium of exchange, the law of inverse proportionality between wages and profit David Ricardo: labor theory of value, theory of wages, theory of capital, theory of profit, theory of money. Ricardo believed that value does not consist of wages, profit and rent, but decomposes into them, or - the source of rent is not a special generosity of nature, but the applied labor.

7 slide

The Rise of Liberal Reformism and the Rise of Socialism The representative of the emerging liberal reformism was Jean Baptiste Say (1767-1832). Sei's main work is "A Treatise on Political Economy", which had 3 sections: production, distribution and consumption. Two main ideas in the work of Zh.B. Sei: Theory production factors: three factors of production - labor, capital and nature (land) - correspond to three basic incomes: labor creates wages, capital - interest, land - rent. The sum of these three incomes determines the value of the product, and each of the owners of this or that factor receives a remuneration or income created by the corresponding factor of production as a certain share of the value of the product. Thus, factors of production are viewed by Say as equivalent sources of value. The three-factor theory has played an important role in the development of economics. Factor analysis of production (the method of production function) was subsequently developed from it, the meaning of which is to find a profitable, optimal combination of factors of production for certain competitive cases.

8 slide

Say's identity or market law associated with the problem of overproduction crises. Periodic crises of overproduction, accompanied by depression, which then turns into a new upsurge, began to be detected and then regularly repeated starting from the 20s of the 19th century. Say's law of markets, stating that production is always equal to consumption, excluded the possibility of a general overproduction of the mass of commodities. An overproduction crisis, according to Say's law, does not occur because the market total amount goods exceeds the total amount of money, but because some goods are produced less than necessary. The resulting structural mismatch is inevitably leveled out as a result of the movement of goods and price combinations. Say's postulate that production always generates demand, products are bought for products, despite the subsequent criticism, remains a fundamental postulate of the theory of the liberal direction in economics and at the present time.

9 slide

John Stuart Mill (1806-1873) - English economist, representative of the late classics, summarized the main achievements of this school. According to Mill, in production there are irrevocable, immutable laws, the appearance of which can be compared with the actions of the laws of nature. Another type of law applies to distribution. These laws can be changed by people in accordance with the requirements of justice and the common good. Therefore, the laws of distribution must be considered separately from the laws of production. Mill also explored the theory of exchange. The theory of production is reduced, as in all the classics, to the study of three factors, each of which grows in accordance with its own specific laws.

10 slide

The law of the growth of labor is the law of the growth of the population, unlimited by nature. But the development of culture, varied needs, and living comfort is gradually becoming a constraint on population growth. Poverty and fear of poverty are also powerful constraints to population growth. Capital growth depends on the frugality of the population. The main incentive here is the high rate of profit, but much also depends on the character of the person, on the traditions of society. If traditionally the propensity to save and accumulate is strong (as in England, Holland), then a low profit and interest are enough to stimulate savings. Thus, writes J. Mill, the second condition for capital growth lends itself to an increase that does not have any definite boundaries. The situation is different with the third factor of production - land. The limited area of ​​land and land fertility sets limits for increased production. Here J. Mill refers to the law of diminishing returns from investment of capital and labor in land, formulated in the works of D. Ricardo. However, J. Mill also sees counter-trends opposing the law of diminishing returns on investment in land. This is the progress of knowledge and technology, "the process of civilization."

11 slide

The theory of value. J. Mill divides all goods into three groups. Goods, the number of which cannot be increased; the value of these goods is determined by their utility and scarcity. Goods, the quantity of which can be increased by the application of labor and capital at the same cost per unit of goods; the value of these goods is determined by the cost of production. Goods, the quantity of which can be increased by the application of labor and capital, but not with fixed, but with increasing costs per unit of goods. These are the products of agriculture and mining. The cost and price of these goods are determined by the marginal (maximum) costs of their production.

12 slide

Utopian socialists Socialism is represented by the works of Thomas More, Robert Owen, Claude Henri de Rouvroix Saint-Sismondi, François Marie Charles Fourier. They criticized capitalism, demanded the abolition of private property, the reorganization of production, distribution, consumption and the elimination of the opposition between mental and physical labor... The most famous work of T. More was "The Golden Book is as useful as it is funny, about the best structure of the state and the new structure of utopia." The first part criticizes Mooru's contemporary social order, the second gives a system of an ideal social order. R. Owen believed that one should not reproach a person for his ignorance and other vices, since a person is a product of the environment and his shortcomings are a consequence of vices existing society... He was the pioneer of factory legislation. He shortened the working hours at the factory he managed, raised wages, changed living conditions, organized a system of educational and educational institutions for children and adults .. The economic crisis of 1815-1817. gave him a critical attitude towards the capitalist mode of production. R. Owen put forward a plan for the organization of labor communes, villages - communities without private property, clergy and authorities. He advocated the creation of a communist society without revolutionary ideas.

13 slide

C. Saint-Simon promoted the ideas of equality, brotherhood and freedom. Saint-Simon great attention devoted to the debunking of the capitalist system, predicted its inevitable death, proposed a program for creating a just social system based on the principles of association. He proposed to unite mercenaries and employers (the bourgeoisie) into a single group of industrialists. According to Saint-Simon, every social system is a step forward in history. The history of development goes through 3 phases, respectively: theological - the period of the domination of religion (covers slave-owning and feudal societies), metaphysical - the period of the collapse of the theological and feudal system, positive - the future social system as a natural result of previous history. The future was to be based on the scientific and planned organization of large-scale industry while maintaining private property. C. Fourier was fond of philosophy, tried to explain the problem of happiness and combine the happiness of one and many. He was interested in the organization of labor, evaluating its effectiveness by the degree of freedom of labor. In his opinion, bourgeois society is so contradictory, so antihuman that inevitably - the sooner, the better - it must be eliminated, replaced by a society of social harmony, prepared by the entire preceding history.

F. Quesnay (1694-1774)

Representatives of classical political economy in France in the XVIII century. were François Quesnay and Anne Robert Jacques Turgot. They transferred the question of the origin of social wealth from the sphere of circulation to the sphere of production. At the same time, the latter was limited only agriculture, believing that wealth is created only in this industry.

A. Turgot (1727-1781).

Therefore, this direction in the development of economic thought was called the school

physiocrats

(the term is derived from the Greek words "nature" and "power").

Adam Smith (1723-1790)

Prominent English economist Adam Smith went down in history as the "Prophet of Free Competition". His greatest merit can be considered the fact that in the world of economics he discerned a natural self-regulating order discovered by Newton in the physical sublunary world. The main idea in the teachings of A. Smith is the idea of ​​liberalism, minimal government intervention in the economy, market self-regulation based on free prices that develop depending on supply and demand. The main work of his life, "Investigation of the Nature and Causes of the Wealth of Nations" (1776), had a tremendous impact on the next century. Economic life, according to Smith, is subject to objective laws that do not depend on the will and conscious aspirations of people. The starting point of all his research is the problem of the division of labor, which links "egoists-individuals" into a single society. After examining this problem, he proceeds to outline the origin and use of money. Smith made a significant contribution to the theory of value, to the doctrine of income, productive and unproductive labor, capital and reproduction, and the economic policy of the state.

CLASSIC POLITICAL ECONOMY

Classical political economy is not a homogeneous, uniform doctrine and contains a number of directions, the authors of which considered certain aspects of economic life from their own, original point of view. The classical school laid the foundations for all the diversity of modern economic views.

Jean Baptiste Say (1767-1832) began to develop another tradition of the interpretation of value, laid down by A. Smith - the theory of factors of production. He was the first of the classics to clearly and unambiguously formulate the idea that the value of a product is equal to the sum of wages, profit and rent, i.e. the amount of income of the owners of production factors used in the manufacture of this product.

The most important contribution made by the representative of the classical school, Thomas Robert Malthus (1766-1834) in economics, is his development of the "theory of population", in which he linked economic and demographic factors. Moreover, in his formulation of this question, the dependence turns out to be two-sided: as the economy affects the change in population, so does the size of the population affect the economy.

J. Sismondi (1773-1842). For him, the whole interest of political economy from a theoretical point of view was reduced to explaining crises, and from a practical point of view - to finding measures to prevent them and improve the situation of the workers. He thus becomes the head of a number of economists, whose activities did not stop throughout the 19th century. Not being socialists, but not blinded by the vices of the liberal regime, these writers sought a middle path in which they would not sacrifice their principles, correcting the abuses of freedom.

CLASSIC POLITICAL ECONOMY

The formation and development of classical political economy took place against the background of serious changes in the economic and social life of society. The traditional feudal relations were replaced by a new economy - a market one, which on initial stages its development was characterized by deep social stratification society.

Abuses in factories in the first half of the 19th century have been described thousands of times: the exploitation of children of all ages in the most unhealthy and cruel conditions, the almost endless length of the working day for women and adult workers, beggarly wages, ignorance, rudeness, disease and vices that arise in such deplorable conditions. In England, doctors' reports, House of Commons questionnaires, speeches and revelations by Robert Owen provoked public outrage.

The requirement to restrict the work of children in cotton spinning mills since 1819 is the first timid step in the field of labor legislation. J. B. Say, traveling in England in 1815, declared that a worker in England, despite having a family, and despite efforts often worthy of the highest praise, can earn only three-quarters, and sometimes only half of his expenses.

WORK

Ford Madox Brown, England (1821-1893)

Artistic

Manchester

CLASSIC POLITICAL ECONOMY

Ricardo (1772-1823).

The largest economist of the era industrial revolution D. Ricardo was in England. He formulated a series of economic laws that entered the treasury of political economy. The central place in the teachings of D. Ricardo is occupied by the theory of value and money, wages and profit, land rent, the theory of capital and reproduction.

Paul Samuelson, in his economics textbook, describes David Ricardo as a key figure in the 19th century: "He was one of the lucky ones. Classical, neoclassical, and post-Keynesian scholars all trace their ancestry back to his circle. The same can be said of the socialist Marxists." ...

Summing up the results of the consideration of the classical school, it should be noted that the main object of research here is production as such, regardless of its sectoral characteristics, as well as the distribution of benefits. Its outstanding representatives put forward and substantiated a system of concepts and categories that represent a scientific reflection of many economic processes.

MARXISM

Karl Marx 1818 - 1883

The merit of the German philosopher and economist Karl Marx lies not only in the development of his original doctrine - the theory of surplus value and the law of concentration (automatic expropriation), but also in the fact that his work became the starting point for modern radical political economy (XX century).

Moreover, its economic theory served in the XX century as one of the components of the social ideology of socialist countries with a planned economy, thus making a contribution to fundamental changes in both the economic and general history of mankind in this century.

Karl Marx was born in Trier (Germany) in the family of a lawyer. During the revolutionary events in Europe 1848 - 1849 he actively participated in the work of the international organization "Union of Communists" and together with Engels wrote its program "Manifesto The communist party"(1848)

IN In 1867, Marx's main work, Capital (vol. 1), was published, which analyzes the development of capitalism and its historical limits; Marx did not complete the work on the following volumes; they were prepared for publication by Engels (v. 2, 1885; v. 3, 1894).

IN in the last years of his life, Marx took an active part in the formation of proletarian parties. Marx developed the principles of a materialist understanding of history (historical materialism), the theory of surplus value, studied the development of capitalism and put forward the position of the inevitability of its death and transition to communism as a result of the proletarian revolution. Marx's ideas had a significant impact on social thought and the history of society in the late 19th and 20th centuries.

The successor to the work of Marx and Engels was V. I. Lenin, who developed the Marxist teaching in new historical conditions.

MARGINALISM

In the 1870s, the "Marginalist Revolution" took place in economics, which led to dramatic methodological and theoretical shifts. It was from this moment that one can consider the beginning of modern economic analysis. Among essential elements marginalism as a direction in economics, the following should be highlighted:

Using limit (i.e. incremental) values... The very word "marginalism" comes from the Latin margo, which means edge, limit. For the first time, marginalists use categories - marginal utility and marginal performance.

Static. Marginalists have lost interest in the "laws of motion" of capitalism, which the classics were concerned with. The emphasis of economic research after the Marginalist Revolution shifted to the study of the use of scarce resources to meet the needs of people at a given point in time.

Subjectivism, i.e. approach in which all economic phenomena researched and evaluated from the point of view of an individual economic entity. It is not for nothing that marginalism is sometimes called the subjective school of economics.

The marginalist direction of economic thought is usually divided into two schools due to the difference in methodology - Austrian and Lausanne.

	Austrian school						Lausanne school

At present, marginalism (mainly based on the Lausanne school), due to the addition of the components of the classical school, has transformed into "NEOCLASSICS (NEOCLASSIC SCHOOL)".

ECONOMIC SCIENCE

from ancient times to the end of the 19th century

Classical political economy

Adam Smith, Jean B. Say, David Ricardo, Robert Malthus ...

PHYSIOCRATS

F. Quesnay, A Turgot

Mercantilism

Atuan de Montchretien

Medieval thinkers

Thomas Aquinas, William of Ockham

Saving

Aristotle, Antisthenes, Plato

NEOCLASSIC SCHOOL

At present, marginalism, due to the addition of the components of the classical school, has transformed into "NEOCLASSIC (NEOCLASSIC SCHOOL)". Outstanding representatives of which are: Alfred Marshall and Joseph Schumpeter.

				A. Marshall. Main work: "Principles of Economic Science" (1890). The fact that
				neoclassical school is a synthesis of ideas of (early) marginalism and classical
				school, looks especially obvious when we refer to the works of recognized
				founder neoclassical school English economist A. Marshall.
				"Principles of Economic Science" are written in a manner traditional for the classics - with
				long digressions, rich in factual material, reasoning on social
				and moral themes.
				The subject of economic science, from the point of view of A. Marshall, are those incentive
				the motives that a person is guided by in their economic activities. These motives
				quantifiable: the strength of a stimulus that causes
				a person to take some action is equal to the monetary payment necessary for a person to
				performed this action.
				Joseph Schumpeter, economist and sociologist. Born in Austria-Hungary, since 1932 in the USA. Essays
				on the problems of the economic cycle, the history of economic doctrines. Considered history
				political economy as a process of the upward development of analytical apparatus and methods
				the central place in which is given to the entrepreneurial function. Offered
				dynamic concept of the cycle, where cyclicality is considered as a regularity
				economic growth.
				The root problem of every economic system, said Schumpeter, is
				achieving and maintaining balance. Within the framework of the model, all firms are in the state
				stable equilibrium, and incomes are equal to costs. Profit and interest are zero, prices
				are formed on the basis of average cost, economic resources are fully utilized.
	Schumpeter Josef			This model introduces a new production function corresponding to the new
				the ratio between costs and output. Introducing a new function
				carried out by an Innovator seeking to get more profit than they can give
				the usual ways.

MONETARISM

Monetarism is considered one of the branches of neoclassical economic thought. It originates in the mid-1950s in the United States. One of the recognized founders and leaders of monetarism is the representative of the so-called Chicago School Milton Friedman.

Initially, monetarism arose as a separate branch of experimental research in the field of money circulation, namely, as an analysis of the demand for money. In the future, it has evolved, covering an ever wider range of economic issues. In the end, by the mid-1970s, it turns into a respectable doctrine, the recipes of which began to be used by the governments of many capitalist countries.

In theoretical terms, monetarism, on the one hand, is based on certain provisions of the neoclassical synthesis (for example, the theory of property), and on the other hand, it is a continuation of the Precaysian neoclassical quantitative theory of money.

Freedman 1912-

The main works of M. Friedman: "Research in the field of the quantitative theory of money" (1956); M. Friedman, A. Schwartz "The Monetary History of the United States, 1867 - 1960" (1963).

All benefits acquired and stored by an economic entity can be represented in the form of its assets. Their combination forms a portfolio of assets. Money is an asset along with other goods.

Assets are held by an individual either because they generate cash income (financial assets: stocks, bonds), or because they have a certain utility as such (non-financial assets: for example, consumer durables, capital goods), or because that they deliver convenience, liquidity and security (money).

The individual's task is to distribute the resources (wealth) at his disposal in such a way as to maximize his utility. The new quantitative theory of money is primarily interested in the amount of funds stored in monetary (liquid) form, that is, in other words, the demand for money.

The demand for money is determined by three main groups of factors: a) the general wealth of an economic entity; b) the costs and benefits associated with various forms of wealth storage; c) the preferences of the individual in relation to various forms of wealth storage.

Classical School of Management.
Prepared
Pupils of grade 10-B
EML
Taran Christina
Strelnikova Alina

Introduction
The classical or administrative school in management spans the period from 1920 to 1950. The founder of this school is considered Henri Fayol, a French mining engineer, an outstanding manager-practitioner, one of the founders of management theory.
The goal of the classical school was to create universal principles of management.

Authors who have written about scientific management have mainly devoted their research to what is called production management. They focused on improving efficiency below the managerial level. With the emergence of the administrative school, specialists began to constantly develop approaches to improving the management of the organization as a whole.

The adherents of the classical school, like those who wrote about scientific management, did not care much about the social aspects of management. Moreover, their work was largely based on personal observation rather than based on scientific methodology. The "classics" tried to look at organizations from a broad perspective, trying to determine the general characteristics and patterns of organizations. The goal of the classical school was to create universal principles of management. In doing so, she proceeded from the idea that following these principles will undoubtedly lead the organization to success.

These principles covered two main aspects. One of them was the development of a rational organization management system. In defining the main functions of business, the theorists-"classical" were confident that they could determine The best way division of the organization into divisions or working groups. Traditionally, these functions were considered finance, manufacturing and marketing. The definition of the main management functions was closely related to this. Fayol's main contribution to management theory was that he viewed management as a universal process, consisting of several interrelated functions, such as planning and organization. In the next section of this chapter, we'll take a closer look at the actual control functions.

The second category of classical principles concerned the construction of the structure of the organization and the management of employees. An example is the principle of one-man management, according to which a person should receive orders from only one boss and obey only him alone.

Historical preconditions for the emergence
At different stages of world history, there were large state formations, for example, Macedonia, Persia, the Roman Empire, etc. Over the years, the management of such formations became clearer and more complex, and the formations themselves became stronger and more stable. So, for example, the army of the Roman Empire had a well-developed structure of management, planning and perfect discipline. Its legions easily defeated the poorly organized armies of Europe and the Middle East. The conquered territories were given under the control of governors subordinate to Rome. Roads were built to improve the communication of the outskirts with Rome, promptly collect taxes in favor of the emperor, and, if necessary, quickly move legions to the outskirts of the provinces if local residents or the administration rebelled against Roman rule.

Practical management experience was studied:
F. Engels K. Marx R. Owen
R. Babbage

At the end of the 19th century, the situation in the economy of the most developed countries was unfavorable. The emergence of new machines, engines internal combustion, metal-working high-speed machine tools and other equipment did not give the expected results in the form of an increase in labor productivity. Concentration and specialization of production did not lead to an increase in the return on invested capital. Scientists were attracted to study the reasons for this situation. Thus, at the turn of the century, the scientific establishment of management took place.

The main provisions of the classical school of management
The classical school includes scientific management and an administrative approach. The essence of scientific management was set forth in the works of F. Taylor, F. Gilbert, L. Gilbert, G. Gantt, M. Weber, S. Parkinson, G. Ford and others. They believed that using observations, measurements, logic and analysis , many operations can be improved manual labor in order to achieve them more efficiently, they analyzed the content of the work and determined its main components. Based on the information received, the scientific management changed work operations to eliminate unnecessary unproductive movements, using standard procedures and equipment, aimed to improve work efficiency, while achieving significant results.

The human factor was also taken into account in scientific management. It was supposed to provide material incentives for increasing labor productivity and production volumes. It also provided for the possibility of rest and inevitable interruptions in production. As a result, it became possible to establish reasonable production rates and pay extra to those who overfulfill them. The authors of works on scientific management also recognized the importance of selecting people who would physically and intellectually correspond to the work performed, emphasized great importance training of workers An important aspect of the scientific approach is the recognition by the authors that management work is a specific specialty, and each group of workers should focus on what it does best. As a result, management was recognized as an independent area of ​​scientific research. Leaders and scientists have made sure that the methods and approaches used in science and in production can be effectively used in the practice of achieving goals.

The authors of the theory of the administrative approach of the classical school of management - A. Fayol, L. Urvik, D. Mooney and others - had experience as leaders top echelon management in big business. They largely proceeded from personal observation, rather than based on scientific methodology, tried to look at organizations from a perspective, to determine their general characteristics and patterns. The goal of these scientists was to create universal management principles that would address two main aspects. The first aspect is the development of a rational management system. By defining the main functions of management, the authors found the best way to divide the organization into departments or working groups. The second aspect concerned the structure of the organization and the management of employees. A. Fayol singled out such management principles as one-man management, the responsibility of the leader for the activities of the team, material incentives, the unity of purpose for all employees of the organization, etc.

Fayol principles and functions of management
A. Fayol (1841-1925) divided the entire management process into five main functions that we still use in the management of an organization: planning, organization, selection and placement of personnel, leadership (motivation) and control. On the basis of the teachings of A. Fayol in the 20s. the concept organizational structure a firm whose elements represent a system of interconnections, a series of continuous interconnected actions - management functions.

The principles of management developed by A. Fayol should be recognized as an independent result of the science of management, "administration" (hence the name "administrative school"). It is no coincidence that the Americans call the Frenchman A. Fayol the father of management.

"Economic Analysis" - It is assumed that labor costs are expressed in units of labor of the same degree of complexity. Integer programming problem. Model is a conditional image of a controlled object (research). Determination of methods with which you can solve the problem. A particular methodology concretizes the general methodology in relation to the economic processes taking place in a certain branch of the national economy, to a certain type of production.

"Department of Production Automation" - Educational laboratory "Software control of equipment". Our graduates and students of specialties 220301 and 220402? cost-effective products! If you enroll in a commercial form of training, the costs will pay off. Educational laboratory "Fundamentals of Robotics". Department "Automation technological processes and production ".

"Teacher of Economics" - Application of ICT. Study room. first in the ranking of students of the State University Higher School of Economics. Health-saving effect of intersubject communication technology. The system of extracurricular activities. The structure of the cognitive needs of teachers of economics. Berezina Irina Viktorovna. Connected to a local computer network with the ability to access the internet.

"Modern Economy" - About the program " Financial economics": Round table on the topic:" Psychological aspects of money "17.10.10 at the Financial University. External Study Program. We invite you to visit the website of the London Educational Project http://projects.fa.ru/london. Partners, collaboration: Science Festival, September 2010. Basic courses in the direction of "Economics" Program "Financial Economics".

"Establishment of a training center" - Staff of research laboratories staff production units new employees of the enterprise. Increase in labor productivity; decrease in development time and introduction of new products; increase in product quality; preservation of intellectual and scientific property of the company. 1 month 2-3 months 2 months 2 weeks 2 months undefined.

"Economic sphere" - Poll. Production. The economy of a particular country, including certain industries and types of production. Lesson 1. People, organizations. Social science. Grade 9. Political. What would happen if people did not have economic knowledge? The structure of the economy. Market. Exchange. Earth. When, under what circumstances?

There are 13 presentations in total