parsons action scheme Class 08 | Advanced Microeconomics | Duncan Foley

Duncan Foley | Leo Model Professor of Economics at the New School for Social Research (NSSR) | Advanced Microeconomics: Information and Behavior in Political Economy | Class 08 Social Coordination Problems in Classical Political Economy (Part A) | Spring 2016

Class 08 Social Coordination Problems in Classical Political Economy (Part A). The eighth lecture explores Adam Smith’s division of labor and Karl Marx’s barter economy from the perspective of social coordination through the hub and spoke model.

The class begins with Smith’s tenets on division of labor, examining algebraically the terms under which a typical individual opts for diversification or specialization and how this process affects the embedment of spontaneous socialism into a society. Then, the discussion moves on to Marx’s barter economy. It focuses on the questions of whether the barter economy is a stable system of exchange and why money economy could be considered as a hub-and-spoke model with strong strategic complementarity. In other words, the fundamental issue debated is the importance of money to society.

parsons action scheme Class 08 | Advanced Microeconomics | Duncan Foley
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