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2015/2016  KAN-CPHIV7002U  Pluralist Economic Theory

English Title
Pluralist Economic Theory

Course information

Language English
Course ECTS 7.5 ECTS
Type Elective
Level Full Degree Master
Duration One Semester
Start time of the course Autumn
Timetable Course schedule will be posted at calendar.cbs.dk
Study board
Study Board for BSc/MSc in Business Administration and Philosophy, MSc
Course coordinator
  • Ole Bjerg - MPP
The primary teacher is cand.polit Rasmus Hougaard Nielsen

Contact information: https:/​/​e-campus.dk/​studium/​student-hub/​aabningstider-og-kontaktinformation
Main academic disciplines
  • International political economy
  • Methodology and philosophy of science
  • Economics
Last updated on 16-02-2015
Learning objectives
To achieve the grade 12, students should meet the following learning objectives with no or only minor mistakes or errors: Having completed the course student should have an overview and understanding of key shools of economic theory. This includes:
  • being familiar with key concepts from these different schools.
  • being able to analyse economic phenomenon and problems from several different perspectives.
  • understanding the difference between endogeneous and exogeneous theories of money.
  • understanding the theoretical assumptions behind modern economic theory
Course prerequisites
Prior knowledge to economic theory is an advantage but not an obligation. The course will be non-technical but technicalities will be used as seen proper.
Pluralist Economic Theory:
Exam ECTS 7,5
Examination form Home assignment - written product
Individual or group exam Individual
Size of written product Max. 15 pages
Assignment type Essay
Duration Written product to be submitted on specified date and time.
Grading scale 7-step scale
Examiner(s) One internal examiner
Exam period Winter
Make-up exam/re-exam
Same examination form as the ordinary exam
Description of the exam procedure

Students write an essay on a topic covered during the course using literature and concepts from the curriculum.

Course content and structure

In this course we will go through different schools of thought in economics - Neo-classical, Post-Keynesian, Austrian, ecological, institutional, and Marxist economics - and put these lines of thought into perspective with modern economic scholars.

We will analyse and discuss some of the problems of traditional economic theory regarding the assumptions of rationality and money neutrality as well as the lack of dynamic analytical tools.  We will also investigate and discuss the more general relationship between money, power and value from different theoretical perspectives and seek answers to questions such as: How is value measured in the 21st century? And is a new theory of value for the modern economy needed? How do we measure development and progress measured in the 21st century? What is the theoretical background of modern monetary and fiscal policy? Furthermore we will study the pre-conditions for a modern non-equilibrium economic paradigm where money, finance, resource constraints and time matters. In continuation of this we will discuss the use of macroeconomic models and theories with money endogeneity compared with traditional growth models and theories, in regard to their relevance and explanatory power in terms of explaining the trends in inequality, unemployment and the technological development as well as the monetary and financial dynamics in the economy.


Themes covered

  • Introduction – schools of thoughts
  • Money and Finance – endogen vs. exogenous monetary theory - Where does money come from?
  • Money and Finance – What is the impact of the financial sector on the economy? – debt- deflation theory, Perry Merhling etc.
  • Class structures In the modern economy – Neo-marxism – The Precariat.
  • Value vs. prices.  Standing/Daly – vs. neo-classical
  • Economic development – Schumpeter/Keen vs. neo-classical growth models – technological innovations
  • Modelling the economy – Bezemer/Hudson/Keen vs. neo-classical. Dynamic and financial modelling.
  • Resources and the environment – Herman Daly and Keen
  • Monetary and fiscal policy –
  • Does institutions matter? –  Galbraith and Perry Merhling
  • Economic cycles – Boom Bust – debt-deflation vs. business cycles
  • Economic Policy and reforms – Positive Money


Teaching methods
The course will consist of a combination of lectures and student exercises.
Expected literature
  • Dunn S. P. And Pressman S. (2005) The Economic contributions of John Kenneth Galbraith. Review of Political Economy Vol. 17, nr. 2. p. 161-209
  • Fisher I. (1936) The Debt-Deflation Theory of Great Depressions.
  • Minsky, H. (1982) Can ”it” Happen Again. M. E. Sharp
  • Daly, H. (2002) Ecological Economics and Sustainable Development.
  • Ryan-Collins, Josh; Werner, Richard; Jackson, Andrew (2012). Where Does Money Come From?: A Guide to the UK Monetary & Banking System (2nd ed.). London:  New Economics Foundation. p. 178.
  • Bezemer, D. (2009) ”No one saw it coming” –Understanding Financial Crisis Through Accounting Models. Munich Personel RePC Archieve.
  • Keen, S. (2011) Debunking Economics – the naked emperor dethroned?. Zed Books.
  • Merhling, P. (2011) The New Lombard Street – How the Fed Became the Dealer of Last Resort. Princeton University Press.
  • Standing, Guy  (2011) The Precariat – The new dangerous class. Policy Network Observatory.
  • Hudson M. And  Bezemer D. (2012) Incorporating the Rentier Sectors into a Financial Model. World Economic Review vol. 1 p. 1-12.
Last updated on 16-02-2015