How Economics Should Be Complicated

Albert O. Hirschman, born in Berlin in 1915 and a refugee from Nazi Germany, graduated from the University of Trieste in 1938. He moved to the United States in 1940, joined the army during the war, worked in the Marshall Plan for the Federal Reserve, and then, for the World Bank, advised the Colombia Government on development. Hirschman taught at Columbia and Harvard universities and has been Professor of Social Science at the Institute for Advanced Study in Princeton, New Jersey.Luca Meldolesi, born in Rome in 1939, taught at the universities of Rome, Calabria and Naples, collaborated with Hirschman on numerous books and articles and has applied Hirschman’s point of view in his teaching, grass roots initiatives and in government on behalf of the Italian South.

• Introduction: Five Theses and an Excursus – Foreign Trade as an Instrument of National Power – Disinflation, Discrimination, and the Dollar Shortage – Devaluation and the Trade Balance: A Note – Balanced and Unbalanced Growth – Efficiency and Growth of the Individual Firm – The Contriving of Reform – Obstacles to Development: A Classification and a Quasi-Vanishing Act – The Principle of the Hiding Hand – The Political Economy of Import-Substituting Industrialization in Latin America – Foreign Aid: A Critique and a Proposal – "Exit, Voice, and Loyalty": Introduction and Doctrinal Background – Political Economics and Possibilism – Policymaking and Policy Analysis in Latin America. A Return Journey – Varieties of Consumer Disappointment – From Private Concerns into the Public Arena – Against Parsimony: Three Easy Ways of Complicating Some Categories of Economic Discourse – The Concept of Interest: From Euphemism to Tautology – Bibliography of Albert O. Hirschman’s Work – Index of Names – Index of Subjects.