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The covid pandemic ought to shake up the field of economics

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The Wealth of Nations, America’s 13 states declared independence, and the same day, July 4, philosopher David Hume held a dinner party for his friends, including Smith, to mark the twilight of his life.Smith’s path-breaking work, along with later highly influential contributions by Léon Walras, Stanley Jevons, and Alfred Marshall, transformed economics.

We learned that markets can function smoothly without a central authority, because the actions of ordinary people trying to earn more and purchase the goods they want create tugs and pulls of demand and supply, causing prices to rise and fall.As this idea became formalized, the social norms and customs on which markets also depend became part of the woodwork—tacit assumptions that we.

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