Joseph Alois Schumpeter (1883-1950) stands among the intellectual giants of the twentieth century, especially in the field of economics; in his long and varied impact on the profession, he is second only to Maynard Keynes. He was a pragmatist in his economic philosophy, an “objective scientific investigator with no particular axe to grind” (Newman, et al., 746). His encyclopedic History of Economic Analysis, edited after his death by his wife and published in 1954, is a monument to his gigantic (...) and versatile achievements; and it remains the locus classicus of almost all works in this area. (shrink)

The doctrine of the “just price” is more than often described as the core of the “economic” thinking of the Scholastics (de Roover 1958; Baldwin 1959; Wilson 1975; Worland 1977). In fact, one could hardly contest that the notion occupies a place of high importance in the economic reflections of the Medieval Doctors. It is of no doubt that their study of economic reality led them to call up very frequently the said notion of “just price”. Yet the insistence with (...) which modern historiography has itself treated this – central but particular – element of the Scholastic economic thinking conceals, to our opinion, some of its important sights and interests. An “objective” approach of the scholastic theory seems to command such an interpretation. But why is the phrase “just price” so often used and developed by the Doctors? Such a simple question cannot be answered simply by focusing on the notion. From a more “methodological” point of view, just price appears only like the final result of a complex argumentation. Little attention has been given to the fact that (1) the issue at stake is less a problem of correctness in limited bargaining than a general question of social justice; (2) the method used to deal with this vast subject in the field of economic relations is a systematic “contractual” analysis. The second point forms the main theme of this paper. (shrink)

This article discusses the intricate relationship between moral theology and economics of the Second Scholasticism developed in the colonies. Its concrete topic is the theory of just price of Tomás de Mercado, who became a classic because of his direct and at the same time scholarly language. The topic of fair or just price, which is not new in scholastic moral theology, is treated by him in a philosophical manner, using an original view based on practical rationality which (...) caused his work to be reprinted several times. (shrink)

This paper is a review of 'Faith and Liberty. The Economic Thought of the Late Scholastics' by Alejandro A. Chafuen.

There are varying opinions about whether or not the field of business ethics has a history or is a development of more modern times. It is suggested that a book by a Dominican Friar, Johannes Nider, De Contractibus Mercatorum, written ca. 1430 and published ca. 1468 provides a basis for a history of over 500 years. Business ethics grew out of attempts to reconcile Biblical precepts, canon law, civil law, the teachings of the Church Fathers, and the writings of early (...) philosophers with the realities of expanding economic activity. Nider's background is discussed as well as his book as an example of incunabula.Nider was one of the Scholastics who provided a link between Aristotle and later Reformation thinkers. In Nider we find caveat venditor as his moral guide to merchants as well as other surprisingly modern ideas such as justice in exchange; restitution for defective goods; the market as the final arbiter of value; and the importance of creating utility in products. (shrink)

A Companion to the Spanish Scholastics offers a much-needed survey of the entire field of early modern Spanish scholastic thought. The volume introduces main themes and contexts of scholastics inquiry (theology, philosophy, ethics, politics, economics, law, science and the senses) through close examination of a wide range of texts, debates, methods, and authors, as well as in-depth discussion of the relevant literature. Each chapter includes a useful bibliography and serves as point of departure for future research. The volume (...) not only draws the sum of existing research, but also challenges established notions and breaks new ground. (shrink)

The Sourcebook is a thematically unified collection of seminal texts in the history of economics on the topic of money and exchange relations —its nature, purpose, value, and relationship to justice and morality in financial transactions—within the tradition of late-scholastic commercial ethics.

In the development of Roman Catholic social thought from the teachings of the scholastics to the modern social encyclicals, changes in normative economics reflect the transformation of an economic terrain from its feudal roots to the modern industrial economy. The preeminence accorded by the modern market to the allocative over the distributive function of price broke the convenient convergence of commutative and distributive justice in scholastic just price theory. Furthermore, the loss of custom, law, and usage in defining (...) the boundaries of economic behavior led to a depersonalization of economic relationships that had previously provided effective informal means of protecting individual well-being. Hence, recent economic ethics has had to look for nonprice, nonmarket mechanisms for distributive justice. This is reflected, for example, in the shift in attitude from the medieval antipathy toward unions to the contemporary defense of organized labor on moral grounds. (shrink)

People have thought about economics for as long as they have thought about how to manage their households, and indeed Aristotle assimilated the study of the economic affairs of a city to the study of the management of a household. During the two millennia between Aristotle and Adam Smith, one finds reflections concerning economic problems mainly in the context of discussions of moral or policy questions. For example, scholastic philosophers commented on money and interest in inquiries concerning the (...) justice of "usury" (charging interest on money loans), and in the 17th century, there was a great deal of discussion of policy concerning foreign trade. Economics only emerged as a distinct field of study with the bold 18th-century idea that there were "economies"--that is autonomous law-governed systems of human interaction involving production, distribution and exchange. This view is already well developed in Adam Smith's Wealth of Nations, from which much of economics derives. (shrink)

Martín de Azpilcueta and his fellow Spanish Scholastics writing and teaching at the University of Salamanca during Spain’s Golden Age are rightly pointed to by historians of economic thought as being major contributors toward, if not outright founders of modern economic theory. Among these is the theory of time-preference for which Azpilcueta has repeatedly been given the credit for discovering. However, this discovery is a curious one given how the same man, Azpilcueta, condemned usury in general during his whole life. (...) If Azpilcueta did in fact discover this theory and fully understand its implications, we would reasonably expect him to have questioned his support for the ban on charging an interest on a loan. This paper, therefore, challenges the claim that Azpilcueta understood and revived time-preference theory and shows how his understanding was much more nuanced, and, at times, inconsistent. (shrink)

Gerald Odonis' treatise on contracts, restitutions, and excommunication is one of his earliest works, composed in Toulouse ca. 1315-17. Mainly based on Peter John Olivi's De contractibus, but using a variety of other sources and offering some original arguments as well, it is remarkable for its pragmatic approach to economic phenomena. His rejection of the rational argument against usury reveals a casual use of the bull Exiit qui seminat, defining Franciscan poverty, as well as a change of assumptions in the (...) approach to economic exchange. Whereas various explanations can be provided for the provocative aspect of this youthful treatise, all in all, it can best be described as a free and uninhibited interpretation of the scholastic tradition. (shrink)

This essay traces a thread between the Novak’s philosophical and theological contribution and the economic and ethical reflection on the commons. Although present embryonically, these interconnections have not been taken into consideration so far. This convergence will be presented through three interrelated stages: a sound theological background, Scholastic reasoning and the evolution of the idea of common goods. From these points some interesting insights will emerge.

Four previously unpublished chapters by Jacob Viner. The first two deal with the economic doctrines of the Christian Fathers and the Scholastics; the last two are each concerned with a particular aspect of the relationship between religious thought, economic ethics, and society. Initially conceived as part of a larger study on "Religion and Society," this volume holds some interest for the philosopher of religion because it examines the treatment by Christian theologians, both Protestant and Catholic, of topics such as private (...) property, riches and poverty, commerce, just price and economic motivation. Viner explores the roles of early Protestant theology in the rise of capitalism, with special reference to the Weber-Tawney thesis which attributes significant responsibility to Calvinist doctrine for the growth and the character of modern capitalism. The chapters on Patristic and Scholastic economic thought are particularly strong. There is a detailed examination of the economic views of Thomas Aquinas, though the author is aware that Aquinas’s influence was not a dominant one before the sixteenth century. In the final chapter Viner amasses considerable historical evidence to construct a case against Weber and his followers. In the first three chapters, Viner appears to have been partly inspired by a desire to correct the false impressions of some earlier and less friendly commentators on Catholic economic thought. Throughout, documentation is extensive. There is a rich bibliography.—J.P.D. (shrink)

Gerald Odonis' treatise on contracts, restitutions, and excommunication is one of his earliest works, composed in Toulouse ca. 1315-17. Mainly based on Peter John Olivi's De contractibus, but using a variety of other sources and offering some original arguments as well, it is remarkable for its pragmatic approach to economic phenomena. His rejection of the rational argument against usury reveals a casual use of the bull Exiit qui seminat, defining Franciscan poverty, as well as a change of assumptions in the (...) approach to economic exchange. Whereas various explanations can be provided for the provocative aspect of this youthful treatise, all in all, it can best be described as a free and uninhibited interpretation of the scholastic tradition. (shrink)

On March 17, 2015, Brill was informed that the article by Francisco Gómez Camacho S. J., “Later Scholastics: Spanish Economic Thought in the XVIth and XVIIth Centuries,” in _Ancient and Medieval Economic Ideas and Concepts of Social Justice_, ed. S. Todd Lowry and Barry Gordon, pp. 503–561 suffers from serious citation problems and that in some cases the original sources are never mentioned at all. It goes without saying that Brill strongly disapproves of such practices, which represent a serious breach (...) of publication integrity. Brill condemns any violation of the authors’ rights and the copyrights of the publishers, and distances itself from these practices. As a result Brill cannot stand behind the noted material as originally contained in this volume and for these reasons formally retracts the article by Francisco Gómez Camacho and also the volume. The volume will no longer be available in its current form. (shrink)

The name "School of Salamanca" refers to a group of theologians and natural law philosophers who taught in the University of Salamanca, following the inspiration of the great Thomist Francisco de Vitoria. It turns out that the Scholastics were not simply medieval, but began in the 13th century and expanded through the 16th and 17th centuries; and they developed some original theories about economics and international law.Why should a few men mainly interested in theology and ethics apply themselves in (...) analyzing issues so far from their worries? The answer leads us to a revision of the morality rules, due to the new problems in business ethics. Thus, for example, the appearance of inflation made them have doubts about the merchant's morality. In order to solve this and other problems, they began to analyze the new and suspicious economic activity. As a result of their observations about ethical issues they discovered some advanced theories for the history of economic thought, such as the early formulation of the quantity theory of money. (shrink)

This book studies the development of ideas on freedom, coercion and power in the history of economic thought. It focuses on the exchange of goods and services and on terms of exchange and examines the nature of choice, that is, the state of the will of economic actors making exchange decisions. In a social context, anyone's range of choice is restricted by the choices made by others. The first to raise the question of the will in this economic context were (...) the medieval scholastics, drawing on non-economic analytic models inherited from antiquity and mainly from Aristotle. From these origins, views on economic choice, coercion and power are recorded, as they gradually change over the centuries, until they manifest themselves in more contemporary disputes between different branches of institutional economics. (shrink)

In this paper I argue that differences between the ‘new moral science’ of the seventeenth century and scholastic natural law theory originated primarily from the skeptical challenge the former had to face. Pufendorf’s project of a scientia practica universalis is the paramount expression of an anti-skeptical moral science, a ‘science’ that is both explanatory and normative, but also anti-dogmatic insofar as it tries to base its laws on those basic phenomena of human life which, supposedly, are immune to skeptical (...) doubt. The main scholastic legacy to the new moral science is the dichotomy between an ‘intellectualist’ and a ‘voluntarist’ view of natural law (or between lex immanens and lex imposita). Voluntarism lies at the basis of both theological views, such as Calvinism, and political views, such as those of Hobbes and Locke. The need to counterbalance the undesirable implications of extreme voluntarism may account for much of the developments in ethics and politics during the seventeenth and eighteenth centuries.Scottish natural jurisprudence, which tried to find a middle way between skepticism and extreme voluntarism, is less secular and more empirical than received wisdom admits. There emerged, as one of its ‘accidental’ outcomes, a systematic, self-contained and empirical economic theory from the search for an empirically based normative theory of social life. The basic assumption of such a theory, namely, the notion of societal laws as embedded in trans-individual mechanisms, derives from the voluntarist view of natural law as ‘imposed’ law.Later discussions of social issues in terms of ‘economic’ and ‘ethical’ reasons originated partly from a misreading ofthe Scottish natural jurisprudential framework of economic theory. Starting with this reconstruction, I try to shed some light on recent discussions about the role of ethics in economics. (shrink)

Many years before Adam Smith, numerous theologians associated with the School of Salamanca, such as Domingo de Soto, Juan de Lugo, Juan de Mariana, Luís Saravia de la Calle, Martin de Azpilcueta, Luis de Molina, Leonard Lessius, Thomas Cajetan, and Francisco Garcia had made great strides in the development of economics. Specifically, these theologians, otherwise known as the “Scholastics,” analyzed and argued against price and wage controls by explaining that the only “just” prices and wages are those that are (...) set by the market, examined and pushed back against prohibitions on usury, understood the concept of time preference, and helped develop monetary theory in multiple ways. They also demonstrated that all of this was consistent with the Catholic religion. This paper analyzes the ways in which these early theologians contributed to the development of economics and reconciled it with their Catholicism. (shrink)

A review of U. Mäki (ed.). Fact and Fiction in Economics, Cambridge: Cambridge University Press, 2003. pp. xvi 384. ISBN 0521 00957. As people interested mainly in theory, methodologists and philos...