ABSTRACT

The use of the word “History” to define the field of Economic History has undoubtedly contributed to the peripheral role its practitioners play in the average economics department. The tendency of economic historians at times to eschew the methodology of the mainstream might be taken as due to the nature of their subject matter rather than their preferences. Economic historians must have a wider perspective than mainstream economists. Cross-country comparison points to many reasons for lower unemployment; long-term employment contracts in Japan, guaranteed jobs for the long-term unemployed in Sweden, more rapid rates of economic growth. Relying for prosperity on continual product innovation must mean that flexibility becomes a guiding principle of economic management. Both regular business cycles and longer swings in economic fortunes were attributed to technological change. The role of trade policy in supporting industries which then become a major force in economic growth deserves inspection.