Political Economy

SAMPOL214 is a course that provides a rigorous survey of studies in and perspectives on the relationship between the state and the economy under capitalism. Its central theme is that of understanding and contrasting orthodox and heterodox approaches to macroeconomic theory. The readings and topics are drawn from the disciplines of both political science and economics. A wide range of rival methodological, ideological, and theoretical approaches will be studied, with an effort to consider the contemporary relevance of each respective perspective. Part I of the course surveys a range of introductory topics including a historical overview of the discipline, fundamental concepts, and rational choice theory. Part II of the course introduces the key theoretical and policy problems that occupy the attention of macroeconomic theory. A thorough elaboration and comparison of classical/neoclassical and Keynesian theories will set the stage for surveys of monetary and fiscal policy approaches. Part III of the course focuses on the state/market relation, presenting the Phillips Curve and general debates concerning the potential unemployment/inflation trade-off. In addition, we will also cover topics and readings related to the political business cycle, inequality, and social democracy. Part IV moves on to the study of business cycles and economic crises under capitalism, placing particular emphasis upon the 2008 financial crisis, its origins, its aftermath, and its consequences for the distribution of income and political influence, both in the US as well as the EU.

A student who has completed the course should have the following learning outcomes: 

Knowledge

• discuss and debate key rival perspectives in macroeconomic theory, including fiscal and monetary policy;
• demonstrate a familiarity with the history of economic ideas in the twentieth century and their manifestation in public policy;
• understand and apply rational choice models to key research questions in political science;
• analyse the sources and consequences of the global economic crisis of 2008.

Skills

• demonstrate an understanding of formal economic logic, concepts and models and their relevance for political science;
• assess claims made by politicians, policy makers and researchers concerning the efficacy and consequences of alternative economic policy approaches.

General competence

• critically analyse and evaluate the ideological and theoretical foundations of alternative economic models and policies and engage in discussions and analyses of the consequences of such models and policies for economic outcomes and social well-being.