ABSTRACT
This chapter presents the psychological and historical aspects of the author's economic thought because this provides the most meaningful basis for interpreting what he was generally seeking to accomplish as an economist. It explores that an interest in the psychological and historical aspects of economic activity is likewise to be found among the earlier writings. In systematically treating psychology and history as the joint centres of his analysis of a wide range of major issues of theory and policy, he contributed much to an understanding of their significance for the study of economic activity as a whole. Since the eighteenth century there have been many who have sought to give a dominant emphasis to the psychological and historical phases of economic activity. The concern with underdeveloped areas has inevitably led to a more detailed analysis of the factors essential to economic growth, including a wide variety of cultural conditions ordinarily regarded as "givens" in the more "orthodox" treatment.
