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LECTURE AND READING GUIDE

Economic History, ECOS3024
Semester 1, 2024

Lecturer/Coordinator: Matthew Smith, Rm 555, Social Sciences Building (A02).

Class Time: Thursday, 12 – 3 pm (Lectures, Q & A Seminars)

Venue: Chemistry Lecture Theatre 4 (F11, Rm. 236)

Note: Dates shown below are only approximate. Essential readings are starred.

Introduction

(Week 1, beginning 19 February)

What is economic history? Why is economic history useful? Interpreting economic history and explaining
growth and development. Lecturer’s perspective on the interpretation of economic history. Outline of
topics covered in the unit and its main objectives.

Reading:

O’Rourke, K. H. (2013) ‘Why economics needs economic history’, Vox Centre of Economic Policy
Research’s Policy Portal, 24 July. http://www.voxeu.org/article/why-economics-needs-economic-history

Smith, M. (2012) ‘Demand-led Growth Theory: A Historical Approach’, Review of Political Economy,
24:4, pp. 543-73.

Smith, M. (2018) ‘Demand-Led Growth Theory in a Classical Framework: Its Superiority, Its Limitations,
and Its Explanatory Power’, Centro Sraffa Working Paper no. 29 (March).
http://www.centrosraffa.org/cswp_details.aspx?id=32

Solow, R (1985), ‘Economic History and Economics’, The American Economic Review 75, pp. 328-31.

Topic 1: The Mercantilist Economy and the Birth of Capitalism

(Weeks 1 and 2, beginning 19 & 26 February)

The renaissance, scientific revolution and age of exploration and discovery. What was mercantilism?
Britain’s rise to dominance as a mercantile power. The enlightenment and the birth of capitalism.

Reading:

* Cameron, R. (1989) A Concise Economic History of the World, New York: Oxford University Press, pp.
94-159.

Deane, P. (1979) The First Industrial Revolution, Second Edition, Cambridge: CUP, Ch. 1, pp. 1-19,
online.
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Topic 2: Britain the Pioneer: The First Industrial Revolution

(Weeks 2 and 3, beginning 26 February & 4 March)

The role of the commercial revolution and mercantilism. Key sectors in Britain’s industrial revolution.
Role of transport and communications in building a national (and empire) market. The key role of
technological innovation. Consideration of British government policy and economic liberalism. The
controversial question of the progress of living standards in the First Industrialisation of Britain.

Reading:

* Deane P. (1979) The First Industrial Revolution, 2nd edn, Cambridge: CUP, especially chs 1-8, 12-13,
15, online.

*Mokyer, J. (2004) 'Accounting for the Industrial Revolution', The Cambridge Economic History of
Modern Britain Volume 1: Industrialisation, 1700-1860, ch. 1, pp. 1-27, online.

Harley, K.C. (2004) ‘Trade: Discovery, Mercantilism and Technology’, The Cambridge Economic History
of Modern Britain Volume 1: Industrialisation, 1700–1860, ch. 7, pp 175-203, online.

Mathias, P. (1993) The First Industrial Nation: The Economic History of Britain 1700-1914, Second
edition, London: Routledge, Ch. 10 (‘Railways’), online.

Deane, P. and Cole, W.A. (1969) British Economic Growth 1688-1959, Second edition, Cambridge: CUP.

Hudson, P. (1992) The Industrial Revolution, New York: Edward Arnold, pp. 101-32, 166-90, online.

Cameron, R. (1989) A Concise Economic History of the World, New York: Oxford University Press, pp.
160-86.

Landes, David S. (1972) The Unbound Prometheus: Technological Changes and Industrial Development
in Western Europe from 1750 to the Present, Cambridge: CUP, pp. 41-123, online.

NO CLASS IN WEEK 4 (11 – 16 March)

Topic 3: The Industrialization of Germany

(Weeks 4 & 5, beginning 18 March & 25 March)

Relative German economic backwardness. The role of Liberal reforms and the customs union. Locating
the industrial take-off: 1850-1870. Key role of the railways as the ‘leading sector’ and development of
its iron and engineering industries. Innovative banking, education system and rapid technological
progress. Bismark and German unification: a nation born with deadly political defects. A return to
protectionism and policy of aggressive mercantilism.

Reading:

* Trebilcock, C. (1981) ‘Germany’, The Industrialization of the Continental Powers 1780-1914, London:
Longman, Chapter 2, pp. 22-111, online.

Hoffman, W.G. (1965) ‘The Take-Off in Germany’, in W. Rostow (ed.) The Economics of Take-Off into
Sustained Growth: Proceedings of a Conference held by the International Economic Association, New
York: St. Martins Press, pp. 95-118. [ereader: pp. 95-118]

Fremdling, R. (1977) ‘Railroads and German Economic Growth: A Leading Sector Analysis with a
Comparison to the United States and Great Britain’, Journal of Economic History, 37:3, pp. 583-604.
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Tilly, R. (1967) ‘Germany 1815-1870’ in R.Cameron (ed.), Banking in the Early Stages of
Industrialization: A Study in Comparative Economic History, New York: Oxford University Press, Ch. VI,
pp. 151-82. [ereader 151-82]

Pierenkemper, T and Tilly, R. (2005) The German Economy During the Nineteenth Century, New York:
Berghahn Books.

Topic 4: The Rise to Dominance of the United States of America

(Weeks 6 and 8, beginning 25 March & 15 April)

Colonial economic development and the American War of Independence. The birth of an independent
United States of America and its early stage of industrialization. The American policy of tariff
protectionism in the nineteenth century. Innovation and industrial development in the antebellum
period. Transport and communications in building an enormous growing national market. The role of
immigration and population growth in the nineteenth century. American innovation and the development
of its heavy industry. Financing industrialization with an undeveloped monetary system. Position in the
international economy in 1913 as the dominant capitalist economy.

Reading:

* Hughes, J. (1990) American Economic History, 3rd edn., New York: Addison-Wesley, Chs. 8, 9, 10, 14,
16, 17. [ereader: Chs 11 & 17]

Gallman, R. E. (2008) ‘Economic Growth Structural Change in Long Nineteenth Century’, in S. L.

Engerman and R.E. Gallman (eds), The Cambridge Economic History of the United States, Volume 2 The
Long Nineteenth Century, Cambridge: Cambridge University Press, , Ch. 1, pp. 1-56, online

Engerman, S.L. and Sokoloff K.L. (2008) ‘Technology and Industrialization, 1790-1914’, in S. L.
Engerman and R.E. Gallman (eds), The Cambridge Economic History of the United States, Volume 2 The
Long Nineteenth Century, Cambridge: Cambridge University Press, Ch. 9, pp. 376-402, online.

North, D.C. (1965) ‘Industrialization in the United States (1815-60)’, in W.W. Rostow (ed.) The
Economics of Take-off into Sustained Growth: Proceedings of a conference held by the International
Economic Association, New York: St. Martins Press, ch. 3, pp. 44-62.

Easter Semester Break: Common Week, 1 – 5 April

In-Semester Test (Week 7): 8 - 12 April 2024

Topic 5: World Wars, the Great Depression and a New World Order

(Weeks 8 & 9, beginning 15 April & 22 April)

The economic consequences of the First World War. German hyper-inflation and the rise of the political
right. The postwar decline of British economy and the ill-fated return to the Gold Standard. The collapse
of agricultural prices in the 1920s. The Great Depression and great policy debates of the 1930s. The
economic recovery of Nazi Germany, Britain and the United States in 1930’s and the road to the Second
World War. The Keynesian revolution and the making of a postwar new world order.
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Reading:

* Kenwood, G and Lougheed, A.L. (1984) The Growth of the International Economy 1820-1980: An
Introductory Text, `London: George Allen and Unwin, Part II, ‘The Interwar Years’, pp. 174-245, 190-
221, online.

* Temin, P. (2008) ‘The Great Depression’, in S. L. Engerman and R.E. Gallman (eds), The Cambridge
Economic History of the United States, Volume 3, The Twentieth Century, Cambridge: Cambridge
University Press, ch. 5, pp. 302-28, online.

Middleton, R. (1985) Towards the Managed Economy: Keynes, the Treasury and the fiscal policy debates
of the 1930s, London: Taylor and Francis, online.

Overy, R. (2010) ‘The “Great Crash”: Capitalism in Crisis’, Chpater 5 of Inter-war Crisis 1919-1939,
Revised Second edition, pp. 48-61, online.

Stewart, M. (1986) Keynes and After, Harmondsworth, Middlesex: Penguin.

Topic 6: The Golden Age ‘1946-1973’

(Weeks 10 & 11, beginning 29 April & 6 May)

The postwar international order: multilateral trade, international institutions in the ‘Bretton Woods’
monetary system. Postwar depression in Europe and the Soviet communist threat. The United States
takes charge: Marshall Aid, the suppression of ‘Labor Movements’ and restoration of management
classes. Social welfare reform and Keynesian full-employment policy. Korean War kicks off a ‘golden
age’ of development. Key role of the United States. The collapse of ‘Bretton Woods’. Oil Price hikes with
stagflation of the 1970s ends the ‘Golden Age’.

Reading:

* Glyn, A., Hughes, A., Lipietz, A. and Singh, A. (1992) ‘The Rise and Fall of the Golden Age’, Marglin
S.A. and Shor, J.B. (eds), The Golden Age of Capitalism: Reinterpreting the Postwar Experience, Oxford:
OEP, ch 2, online.

* Armstrong, P., Glyn, A. and Harrison, J. (1984) Capitalism since 1945, London: Fontana, pp. 117-230.
[ereader]

Epstein, G.A and Schor, J.B. (1992) ‘Macropolicy in the Rise and Fall of the Golden Age‘, Marglin S.A.
and Shor, J.B. (eds), The Golden Age of Capitalism: Reinterpreting the Postwar Experience, Oxford:
OEP, ch 3, online.

Crafts, N. and Toniolo G. (eds) (1996) Economic Growth in Europe since 1945, Cambridge: Cambridge
University Press, online.

Topic 7: Japan: The Rising Sun

(Weeks 12 & 13, beginning 13 & 20 May)

Some historical background: the ‘Edo Period’ and creation of a feudal nation. Meiji: birth of modern
Japan in 1869. Laying the foundations for a modern economy 1868-1885: abolition of feudalism, trading
with the world, assimilating western technology and building transport and communications
infrastructure. Early stages of industrialization of Japan 1885-1920. Rapid population growth and acute
problems in agricultural production. Colonialism and nationalism: Japan as an international
power. Economic depression and military-based industrial revival of the 1930s. US occupation 1945-
51. The Korean War and economic recovery turns to boom. The ‘miracle’ economy’ 1955-1973.

Reading:
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* Allen, George (1972) Short Economic History of Modern Japan 1867-1937; with a supplementary
chapter on economic recovery and expansion, 1945-1960, London: Allen and Unwin, online.

*Ohkawa, K and Rosovsky, H. (1978) 'Capital Formation in Japan', P. Mathias and M.M. Postan
(eds) The Cambridge Economc History of Europe, Volume 7:The Industrial Economies: Capital, Labour
and Enterprise, Part 2, The United States, Japan and Russia, ch. 3, pp. 134-65, online.

Tsuru, S. (1993) Japan’s Capitalism: creative defeat and beyond, Cambridge: Cambridge University
Press.

Katz, R. (1998) Japan, the system that soured: the rise and fall of the Japanese economic miracle,
Armonk, NY: M.E. Sharpe, ch. 6, online.

Tairo, K. (1978) 'Factory Labour and Industrial Revolution in Japan', P.Matias and M.M postan (eds), The
Cambridge Economic History of Europe Volume 7: The Indsutrail Economies: Capital, Labour and
Enterprise, Part 2: The United States, Japan and Russia, Ch. 4., pp. 166-214, online.

Allinson, G.D. (2007) Japan’s Postwar History, Second edition, Ithaca NY: Cornell University Press.

STUVAC 29 May – 2 June