Classical economics and modern times

Abstract

A scientific program and paradigm of classical economics is in focus of the paper. The different versions of the periodization and wording of the distinctive features and principles which make a basis of classical economics can be observed in the research literature and study materials. The paper considers the criteria according to which any research could be referred to a certain economic theory and basic distinction between classical economics and neo-classical one which mainly lies in fact that neo-classical economics refused from an objective character of economic laws and adopted a criteria of the minimal number of initial hypothesis as a major principle of building an economic theory. The elements of continuity of paradigm can be noted in classical economics and certain institutionalism concepts. The difference in methodology of institutionalism and classical economics mostly lies in fact that institutionalism is based on positivism whereas classical economics assumes a standard model of economy. However, the continuity of views of both of them ban be observed in a class nature of society and differentiation between a phenomenon and its essence as well as in interdependence between economic and social life.