Political Economy - Political Economy
Section outline
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Since returning to office, Donald Trump has done much to overturn conventional politics and economics: he has governed by executive decree, brought in a new era of high US tariffs, and trampled over international institutions and international law. In short, he has weakened US democracy and destroyed much of the international order which can be traced back to the end of World War II, was largely created - for better or worse - by the United States itself, and which shaped the era of rising globalisation from the mid-1980s until the Global Financial Crisis in 2007-2008.Similar moves to retreat from international liberalism can be found elsewhere. In Europe, its most obvious example so far has been Brexit, but the rise of national populism across the continent seems far from over. More importantly has been the consolidation of China's distinct form of "political capitalism" (Branko Milanovic), which in the last decade has seen a political return to clearer Marxist-Leninism under the rule of Xi Jinping (Kevin Rudd), coupled with the greater assertion of China in the global economy and China's domination of worldwide manufacturing.Although war has never been absent from the world, Russia's invasion of Ukraine in 2022 has led to the first major conflict in Europe since 1945 and a reconfiguration of international trade and commerce. The horrendous tragedy of Gaza has also substantial political ramifications for South-North relations.These ongoing shocks to the global economy are profoundly changing international relations and also the way the world economy is working. They also represent a significant challenge to economics as a discipline, whose origins stem from historical political liberalism and whose evolution in recent decades is strongly associated with (Western, and even US) neoliberalism.This course seeks to provide some elements to help students understand these trends in today's world and the political economy of contemporary capitalism(s). It takes an institutional and historical approach to shed light on the interactions between politics and economics, both nationally and internationally. The classes will broadly follow the outline below, although Sections will be updated and modified as necessary.During classes, students will also be required to make group presentations (PPT plus written text) about their own countries' political and economic situation as well as their challenges. This class work represents 20% of your final mark. A traditional - pen and paper - 3-hour exam makes up the remaining 80%.16 January 2026What is Political Economy?Wikipedia gives quite a good, broad definition of what Political Economy is. Academics are usually sceptical about Wikipedia, although some students have told me it is their most trusted source of information. Wikipedia does have the advantage of being permanently reviewed, and it is of course incredibly international. You can read more here: https://en.wikipedia.org/wiki/Political_economy.
Course Outline
The following is a course outline of what we will look at in class, and more detail is given in the sections of this Epi below. These will be steadily amended during the semester, which lasts for twelve weeks. Each section will therefore be covered in two weeks.
1/ Economics in times of crisis:1a) What is economics? What is capitalism? How do they respond to crises?1b) The contribution of complexity theory to understanding crises: an introduction2a) The post-World War II world and the Keynesian settlement. The "shocks" of the 1970s and paradigm change.
2b) A brief review of French Régulationist theory. The Covid-19 crisis and the wars in Ukraine and Gaza in a historical perspective.
2/ The neoliberal paradigm
1a) "Tax revolts" and the primacy of monetary policy, and the Jackson Hole consensus;
1b) Market deregulation, privatisation and the weakening of labour;
2a) Why does public spending tend to rise?2b) New Public Management.
3/ The "Washington Consensus", the "End of history" and "varieties of capitalism"
1a) From dependency theory and alternative development theories to the Washington Consensus.1b) The "End of History" and the emergence of "varieties of capitalism" literature.2a) The traditional literature on "varieties of capitalism".2b) New varieties of capitalism across the globe.
4/ Money, financial globalisation and financial crises1a) The nature of money (the forgotten core of capitalism); the function of banks;1b) The rise of global finance;
2a) The 2007-2008 global financial crisis (GFC) and managing Covid;2b) From "secular stagnation" to dealing with inflation again.
5/ The changing International Political Economy (IPE)
1a) A review of the historical concepts of IPE (the mercantilist/realist, liberal/rules-based, and Marxist/radical schools);
1b) Dany Rodrik's "Globalisation Paradox";
2a) The end of the liberal, rules-based system: Trump(ism) and Brexit;
2b) Covid, war in Ukraine, and the new rivalry between China and the United States.
6/ The contributions of some women economists1a) An introduction to feminist economics.
1b) The Social Provisioning Approach
2a) A brief review of work by Elinor Ostrom and Esther Duflo.
2b) A presentation of Kate Raworth's "Doughnut Economics", Kate Soper and "alternative hedonism", Noreen Hertz's "The Lonely Century", etc. -
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This section deals with the following (updated 19/01/2023):1a) What is economics? What is capitalism? How do they respond to crises?1b) The contribution of complexity theory to understanding crises: an introduction2a) The post-World War II world and the Keynesian settlement. The "shocks" of the 1970s and paradigm change.
2b) A brief review of French Régulationist theory. The Covid-19 crisis and the wars in Ukraine and Gaza in a historical perspective. -
This section examines three broad issues
1a) "Tax revolts" and the primacy of monetary policy, and the Jackson Hole consensus;
1b) Market deregulation, privatisation and the weakening of labour;
2a) Why does public spending tend to rise?2b) New Public Management and beyond. -
3) The "Washington Consensus", the end of alterantive development theories, the "End of History" and "varieties of capitalism"
1a) From dependency theory and alternative development theories to the Washington Consensus.1b) The "End of History" and the emergence of "varieties of capitalism" literature.2a) The traditional literature on "varieties of capitalism".2b) New varieties of capitalism across the globe. -
1a) The nature of money (the forgotten core of capitalism); the function of banks;1b) The rise of global finance;
2a) The 2007-2008 global financial crisis (GFC) and managing Covid;2b) From "secular stagnation" to dealing with inflation again. -
This unit will provide a short overview of some of the key elements of International Political Economy. Part of the unit will look in greater detail at recent work by Dany Rodrik.
1a) A review of the historical concepts of IPE (the mercantilist/realist, liberal/rules-based, and Marxist/radical schools);
1b) Dany Rodrik's "Globalisation Paradox";
2a) The end of the liberal, rules-based system: Trump(ism) and Brexit;
2b) Covid, war in Ukraine, and the new rivalry between China and the United States. -
I) An introduction to feminist economics.
ii) The Social Provisioning Approach
III) A brief review of work by Elinor Ostrom and Esther Duflo.
IV) A presentation of Kate Raworth's "Doughnut Economics", Kate Soper and "alternative hedonism", Noreen Hertz's "The Lonely Century", etc.
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