Misplaced Pages

#233766

121-783: Vaksince, like the whole region of Macedonia, belonged to the Ottoman Empire for centuries. When it fell apart at the beginning of the 20th century, Albania gained independence on November 28, 1912, during which the majority of citizens in and around Vaksince were in favor of their region belonging to this new state. However, Serbia was able to persuade the great powers that most of the Albanian settlement areas in Macedonia came under its rule, including Vaksince. Between 1918 and 1991 Vaksince belonged to Yugoslavia and since then to North Macedonia. The Macedonian-Albanian conflict in 2001 In 2001, Vaksince

242-400: A coordinated attack on the village from the directions of Otlja, Orizare and Slupčane. The insurgents were firing machine-guns, automatic rifles, sniper rifles , and rocket propelled grenades ". During the next two days, Macedonian security forces carried out an offensive towards Slupčane, which was shelled on a daily basis. In the meantime, there was news that there was renewed fighting in

363-702: A definition of economics as a study of human behaviour, subject to and constrained by scarcity, which forces people to choose, allocate scarce resources to competing ends, and economise (seeking the greatest welfare while avoiding the wasting of scarce resources). According to Robbins: "Economics is the science which studies human behavior as a relationship between ends and scarce means which have alternative uses". Robbins' definition eventually became widely accepted by mainstream economists, and found its way into current textbooks. Although far from unanimous, most mainstream economists would accept some version of Robbins' definition, even though many have raised serious objections to

484-451: A distinct field. The book focused on determinants of national income in the short run when prices are relatively inflexible. Keynes attempted to explain in broad theoretical detail why high labour-market unemployment might not be self-correcting due to low " effective demand " and why even price flexibility and monetary policy might be unavailing. The term "revolutionary" has been applied to the book in its impact on economic analysis. During

605-541: A halt to the offensive on 12 June. During the ceasefire, the supply of drinking water for Kumanovo would be turned on again, and civilians in Lipkovo would receive food, water and medicine by the OSCE . Socioeconomics Economics ( / ˌ ɛ k ə ˈ n ɒ m ɪ k s , ˌ iː k ə -/ ) is a social science that studies the production , distribution , and consumption of goods and services . Economics focuses on

726-522: A kilometer up the hills fighting their way towards the village of Gajre . By early afternoon, the village of Gajre was captured by the police; they entered Šipkovica , but the NLA insurgents put up stiffer resistance at Lavce . Macedonian government forces continued to move carefully to the north of Tetovo during the second day of the offensive (26 March 2001), consolidating their control of villages that had been held by Albanian rebels for almost two weeks. After

847-420: A lower relative cost of production, rather relying only on its own production. It has been termed a "fundamental analytical explanation" for gains from trade . Coming at the end of the classical tradition, John Stuart Mill (1848) parted company with the earlier classical economists on the inevitability of the distribution of income produced by the market system. Mill pointed to a distinct difference between

968-449: A more comprehensive theory of costs on the supply side. In the 20th century, neoclassical theorists departed from an earlier idea that suggested measuring total utility for a society, opting instead for ordinal utility , which posits behaviour-based relations across individuals. In microeconomics , neoclassical economics represents incentives and costs as playing a pervasive role in shaping decision making . An immediate example of this

1089-460: A more important role in mainstream economic theory. Also, heterogeneity among the economic agents, e.g. differences in income, plays an increasing role in recent economic research. Other schools or trends of thought referring to a particular style of economics practised at and disseminated from well-defined groups of academicians that have become known worldwide, include the Freiburg School ,

1210-455: A number of factories had to close down, adding to already high unemployment. At the same time, the main transit route for Macedonian exports to most of Europe had been closed, increasing the costs for exports. State coffers, almost empty before the outbreak of the crisis, were now practically exhausted. Macedonians were worried about the impact that more than 360,000 Albanian refugees might have on Macedonia's own ethnic mix. They were afraid that

1331-583: A prominent manifestation of these demands was the declaration of an autonomous republic called " Ilirida " in the western part of Macedonia. Other pressing issues were the attempted creation of an Albanian language university in Tetovo (1995), declared illegal by Macedonian authorities, as well as the anti-constitutional raising of the Albanian flag in front of the municipal assemblies in Gostivar and Tetovo in 1997. Macedonians considered these two events as steps towards

SECTION 10

#1732854690234

1452-586: A proportion of the value their work had created. Marxian economics was further developed by Karl Kautsky (1854–1938)'s The Economic Doctrines of Karl Marx and The Class Struggle (Erfurt Program) , Rudolf Hilferding 's (1877–1941) Finance Capital , Vladimir Lenin (1870–1924)'s The Development of Capitalism in Russia and Imperialism, the Highest Stage of Capitalism , and Rosa Luxemburg (1871–1919)'s The Accumulation of Capital . At its inception as

1573-409: A rapidly growing population against a limited amount of land meant diminishing returns to labour. The result, he claimed, was chronically low wages, which prevented the standard of living for most of the population from rising above the subsistence level. Economist Julian Simon has criticised Malthus's conclusions. While Adam Smith emphasised production and income, David Ricardo (1817) focused on

1694-469: A set of stable preferences, a definite overall guiding objective, and the capability of making a choice. There exists an economic problem, subject to study by economic science, when a decision (choice) is made by one or more players to attain the best possible outcome. Keynesian economics derives from John Maynard Keynes , in particular his book The General Theory of Employment, Interest and Money (1936), which ushered in contemporary macroeconomics as

1815-409: A single tax on income of land owners. In reaction against copious mercantilist trade regulations, the physiocrats advocated a policy of laissez-faire , which called for minimal government intervention in the economy. Adam Smith (1723–1790) was an early economic theorist. Smith was harshly critical of the mercantilists but described the physiocratic system "with all its imperfections" as "perhaps

1936-452: A social science, economics was defined and discussed at length as the study of production, distribution, and consumption of wealth by Jean-Baptiste Say in his Treatise on Political Economy or, The Production, Distribution, and Consumption of Wealth (1803). These three items were considered only in relation to the increase or diminution of wealth, and not in reference to their processes of execution. Say's definition has survived in part up to

2057-435: A sought after end). Some subsequent comments criticised the definition as overly broad in failing to limit its subject matter to analysis of markets. From the 1960s, however, such comments abated as the economic theory of maximizing behaviour and rational-choice modelling expanded the domain of the subject to areas previously treated in other fields. There are other criticisms as well, such as in scarcity not accounting for

2178-442: A synthesis emerged by the 2000s, often given the name the new neoclassical synthesis . It integrated the rational expectations and optimizing framework of the new classical theory with a new Keynesian role for nominal rigidities and other market imperfections like imperfect information in goods, labour and credit markets. The monetarist importance of monetary policy in stabilizing the economy and in particular controlling inflation

2299-658: A televised speech to the nation, that he would not negotiate with "terrorists". He rebuked the United States and Germany, whose troops patrolled the border from the Kosovar side as part of NATO's contingent there, for not doing enough to stop the rebels. Georgievski accused NATO of "creating a new Taliban in Europe" and allowing Albanian extremists to operate out of UN administered Kosovo . After five days of guerrilla attacks against government forces in and around Tetovo, on 18 March 2001,

2420-421: Is a term for the "way (nomos) to run a household (oikos)", or in other words the know-how of an οἰκονομικός ( oikonomikos ), or "household or homestead manager". Derived terms such as "economy" can therefore often mean "frugal" or "thrifty". By extension then, "political economy" was the way to manage a polis or state. There are a variety of modern definitions of economics ; some reflect evolving views of

2541-438: Is also applied to such diverse subjects as crime , education , the family , feminism , law , philosophy , politics , religion , social institutions , war , science , and the environment . The earlier term for the discipline was "political economy", but since the late 19th century, it has commonly been called "economics". The term is ultimately derived from Ancient Greek οἰκονομία ( oikonomia ) which

SECTION 20

#1732854690234

2662-413: Is promoting it. By preferring the support of domestic to that of foreign industry, he intends only his own security; and by directing that industry in such a manner as its produce may be of the greatest value, he intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention. Nor is it always the worse for the society that it

2783-598: Is the consumer theory of individual demand, which isolates how prices (as costs) and income affect quantity demanded. In macroeconomics it is reflected in an early and lasting neoclassical synthesis with Keynesian macroeconomics. Neoclassical economics is occasionally referred as orthodox economics whether by its critics or sympathisers. Modern mainstream economics builds on neoclassical economics but with many refinements that either supplement or generalise earlier analysis, such as econometrics , game theory , analysis of market failure and imperfect competition , and

2904-568: The Albanian and Turkish flag in the town halls of Gostivar and Tetovo. The removal of the flags sparked protests . The Macedonian Army was formed in 1992 with the withdrawal of the Yugoslav National Army under the agreement that it would take all of its equipment with it, stripping the facilities bare, and mining them for demolition, in some case even army apartments were stripped of wire and plumbing. According to Belgrade newspapers

3025-564: The Associated Press that the NLA was holding thousands of villagers as human shields. The offensive started with the shelling of selected targets in Vaksince by military helicopters and field artillery . In the next several days, Macedonian security forces shelled NLA positions in the villages of Slupčane, Orizari and Otlja. Afterwards, Macedonian police and infantry units advanced. On 7 May 2001, Macedonian Army officials announced that in

3146-531: The Democratic Party of Albanians , which was a part of the Macedonian government, criticized the attack against the police station and said the following: The Tetovo incident is part of an orchestrated action against the government and a very crude attempt to overthrow it. Regardless of who is behind it, as a political party we deeply condemn this act. This is a deeply anti-Macedonian act, but also an act against

3267-617: The Kosovo Liberation Army began crossing the border and entrenching themselves in Albanian-populated municipalities of the Republic. Macedonian authorities frequently intercepted and seized weapons deliveries en route to Kosovo. In the prelude to the conflict in late 2000, groups of armed Albanians started opening fire on Macedonian police and security forces located on the border with Yugoslavia . These events appeared to catch

3388-473: The Macedonian government and the international community by surprise. The first attacks occurred in the small village of Tanuševci , located in northern Macedonia near the border with Kosovo . The conflict began on 22 January 2001, when a group of armed Albanians attacked the police station of the village Tearce near Tetovo , killing a police officer and injuring three others. Arben Xhaferi , leader of

3509-565: The Republic of Macedonia had been trying to focus on its internal affairs . The promotion of democracy and harmonised inter-ethnic relations had been defined as the main goal of the new state. Since the first democratic elections in 1991, the Albanians of Macedonia used all constitutional and political opportunities to play a significant political role in the country. There were several Albanian political parties, whose behaviour and rhetoric (just as in

3630-747: The School of Lausanne , the Stockholm school and the Chicago school of economics . During the 1970s and 1980s mainstream economics was sometimes separated into the Saltwater approach of those universities along the Eastern and Western coasts of the US, and the Freshwater, or Chicago school approach. Within macroeconomics there is, in general order of their historical appearance in

3751-420: The ethnic Macedonian majority and the largest minority, the ethnic Albanians , had co-existed uneasily both before and after the country declared independence in 1991, their relations had generally been peaceful. All of the successive Macedonian governments had included Albanian parties as coalition partners, and several problems were resolved through political dialogue. The mood was more or less optimistic until

Vaksince - Misplaced Pages Continue

3872-433: The macroeconomics of high unemployment. Gary Becker , a contributor to the expansion of economics into new areas, described the approach he favoured as "combin[ing the] assumptions of maximizing behaviour, stable preferences , and market equilibrium , used relentlessly and unflinchingly." One commentary characterises the remark as making economics an approach rather than a subject matter but with great specificity as to

3993-467: The neoclassical model of economic growth for analysing long-run variables affecting national income . Neoclassical economics studies the behaviour of individuals , households , and organisations (called economic actors, players, or agents), when they manage or use scarce resources, which have alternative uses, to achieve desired ends. Agents are assumed to act rationally, have multiple desirable ends in sight, limited resources to obtain these ends,

4114-415: The societal to the microeconomic level: Economics is a study of man in the ordinary business of life. It enquires how he gets his income and how he uses it. Thus, it is on the one side, the study of wealth and on the other and more important side, a part of the study of man. Lionel Robbins (1932) developed implications of what has been termed "[p]erhaps the most commonly accepted current definition of

4235-506: The "Tigers", who specialised in urban counter-guerrilla fighting, was also deployed. After two weeks of heavy fighting, on 26 May 2001 the Macedonian security forces recaptured Vaksince and Lojane. During the battle for Vaksince, Macedonian forces killed Fadil Nimani, chief commander of the NLA in Kumanovo. Macedonian troops continued their offensive towards the NLA strongholds of Slupčane and Matejce, both about thirty kilometres northeast of

4356-400: The "choice process and the type of social interaction that [such] analysis involves." The same source reviews a range of definitions included in principles of economics textbooks and concludes that the lack of agreement need not affect the subject-matter that the texts treat. Among economists more generally, it argues that a particular definition presented may reflect the direction toward which

4477-486: The 1970s and 1980s, when several major central banks followed a monetarist-inspired policy, but was later abandoned because the results were unsatisfactory. A more fundamental challenge to the prevailing Keynesian paradigm came in the 1970s from new classical economists like Robert Lucas , Thomas Sargent and Edward Prescott . They introduced the notion of rational expectations in economics, which had profound implications for many economic discussions, among which were

4598-500: The 2/502nd & 3/502nd Infantry Regiments of the 101st Airborne Division (Air Assault) controlled much of the border. Infantry Squads patrolled the mountains 24/7 conducting clandestine observation and interdiction. Mortar platoons provided illumination support for night observation. On March, KFOR and the Macedonian forces led a joint operation against Albanian rebels in the Macedonian-Kosovar border region, which resulted in

4719-549: The Albanian insurgents, discouraging their encampment in the buffer zone ( Ground Safety Zone ) area between Kosovo and Serbia , or preventing their entry into Macedonia. The NLA claimed that the rebel force comprised several thousand men, coming mainly from Macedonia. After a month of clashes, by late February, the Macedonian special police units neutralized the positions of the NLA in Tearce and Tanuševci , temporarily driving them across

4840-791: The Kosovo Liberation Army. Ceka Bilal was a member of the Kosovo Intelligence Agency and was one of the main organizers for weapons smuggling in Kosovo. In reference to the attack, Macedonian President Boris Trajkovski stated, "We are fighting terrorists, not rebels, and we have exercised the utmost restraint in tackling them". The killing of the eight Macedonian soldiers and police officers led to riots in Skopje , Bitola , and Veles , during which ethnic Macedonians attacked Albanian-owned businesses and shops. At least ten Albanian shops in

4961-482: The Macedonian government announced an end of its offensive against the NLA armed groups. The Macedonian government claimed to have killed a dozen NLA guerrillas during the offensive. The rebels also claimed to have killed at least a dozen Macedonian border police, however this was denied by security officials. Hospital officials in Tetovo said thirty police officers and ten civilians were wounded. One civilian, an Albanian man,

Vaksince - Misplaced Pages Continue

5082-523: The Macedonian government ordered a general mobilization of reservists to execute a wider counter-attack against the National Liberation Army's positions in the hills around Tetovo. The offensive of the Macedonian security forces was launched against NLA positions on the hillsides overlooking the city on 25 March 2001. While encountering fierce resistance from the rebels, more than two-hundred troops, aided by tanks and mortars, advanced about

5203-651: The Macedonian police. Two people were killed, including the commander of the regional police. As of the 2021 census , Vaksince had 1,808 residents with the following ethnic composition: According to the 2002 census, the village had a total of 2479 inhabitants. Ethnic groups in the village include: This Lipkovo location article is a stub . You can help Misplaced Pages by expanding it . 2001 insurgency in Macedonia 90 civilians killed 150–250 total dead and 1,000 total casualties 70–250 killed in fighting Other : 140,000 people displaced [REDACTED] One British soldier killed The 2001 insurgency in

5324-442: The Macedonian security forces' artillery and infantry assault, most of the NLA insurgents had abandoned their positions farther north into the mountains stretching toward Kosovo . On 28 March 2001, two days after the NLA was driven out from the greater part of Tetovo, Macedonian security forces launched a second offensive, this time directed at clearing the insurgents from their remaining strongholds stretching from east of Tetovo to

5445-469: The National Liberation Army to lay down their arms and leave the country, or face a full-scale offensive. The NLA rejected the ultimatum, announced a unilateral ceasefire, and called for political dialogue. In response, President Trajkovski claimed that the government first had to "neutralize the terrorist threat", but agreed to start a political dialogue with legitimate Albanian political parties in Macedonia. Prime Minister Ljubčo Georgievski declared, in

5566-626: The Republic of Macedonia was an armed conflict which began when the ethnic Albanian National Liberation Army (NLA) insurgent group, formed from veterans of the Kosovo War and Insurgency in the Preševo Valley , attacked Macedonian security forces at the end of January 2001, and ended with the Ohrid Agreement , signed on 13 August of that same year. There were also claims that the NLA ultimately wished to see Albanian-majority areas secede from

5687-590: The Ukrainian government agreed to suspend all military sales to Macedonia in July. According to the 1994 census, there were 442,914 Albanians in the Republic of Macedonia, making up about 22.9% of the total population of the country (1,936,877). This made them the largest ethnic minority alongside the majority Macedonian population of 1,288,330 (66.5%). In 2001, the Albanians of Macedonia lived largely in compact settlements in

5808-407: The analysis of wealth: how wealth is created (production), distributed, and consumed; and how wealth can grow. But he said that economics can be used to study other things, such as war, that are outside its usual focus. This is because war has as the goal winning it (as a sought after end ), generates both cost and benefits; and, resources (human life and other costs) are used to attain the goal. If

5929-479: The area of inquiry or object of inquiry rather than the methodology. In the biology department, it is not said that all biology should be studied with DNA analysis. People study living organisms in many different ways, so some people will perform DNA analysis, others might analyse anatomy, and still others might build game theoretic models of animal behaviour. But they are all called biology because they all study living organisms. According to Ha Joon Chang, this view that

6050-571: The army removed equipment worth $ 14 billion and $ 20 billion which could equip an army of 30,000. This left Macedonia severely weakened and forced Macedonia to rely on donated surplus vehicles and outdated weaponry, the World War II t-34/85 was the main battle tank of the Macedonian Army until the Bulgarian donation of 100 M −30 howitzers and 94 T-55 tanks in 1999. In 2001 Ukraine

6171-436: The army, and allow for presidential rule by decree, fewer restraints on the army, the banning of demonstrations, a nationwide curfew, and sealing the country's borders. During the entire conflict, however, the United States urged Macedonia not to declare a state of war in its fight against the NLA. In the beginning of May 2001, a large group of NLA rebels infiltrated Macedonia from Kosovo and set up bases in several villages to

SECTION 50

#1732854690234

6292-443: The author believes economics is evolving, or should evolve. Many economists including nobel prize winners James M. Buchanan and Ronald Coase reject the method-based definition of Robbins and continue to prefer definitions like those of Say, in terms of its subject matter. Ha-Joon Chang has for example argued that the definition of Robbins would make economics very peculiar because all other sciences define themselves in terms of

6413-404: The basements of their houses rather than attempt to leave the village because they would find themselves in the cross-fire between the security forces and the NLA. Because the civilians had not fled the conflict zone, to prevent a humanitarian catastrophe in Lipkovo, and to resume the supply of water to the village, a temporary ceasefire was brokered by the OSCE , and President Trajkovski ordered

6534-470: The beginning of 2001. The main cause for incidents though, was the repression by the Macedonian governments on the use of the Albanian language in Macedonia and the ban of the use of the Albanian flag in public institutions. In 1997 the Constitutional Court restricted the use of the Albanian flag in public institutions to state holidays after the mayors of Tetovo and Gostivar illegally hoisted

6655-716: The behaviour and interactions of economic agents and how economies work. Microeconomics analyses what is viewed as basic elements within economies , including individual agents and markets , their interactions, and the outcomes of interactions. Individual agents may include, for example, households, firms, buyers, and sellers. Macroeconomics analyses economies as systems where production, distribution, consumption, savings , and investment expenditure interact, and factors affecting it: factors of production , such as labour , capital , land , and enterprise , inflation , economic growth , and public policies that have impact on these elements . It also seeks to analyse and describe

6776-426: The border into Kosovo . By March 2001, NATO forces deployed in and around Kosovo began to interdict rebel supplies from areas under KFOR control, with surveillance carried out by drones . USAF Predators from the 11th Reconnaissance squadron were moved to the Skopje airport and later replaced by Task Force Hunter, a drone unit made up of IAI RQ-5 Hunter unmanned aircraft. A combined ground and aerial mission

6897-414: The capital Skopje. After several clashes in which the NLA insurgents were defeated, on 29 May 2001, Macedonian police and army units entered the village of Matejče. While searching the houses, the police found weapons and military equipment. The police also discovered a system of tunnels which provided connection between several houses. After the Macedonian security forces captured Matejče, the NLA initiated

7018-426: The capture of the village Tanuševci . US Forces coordinated with Macedonian Forces to minimize border traffic and activity. In the middle of March, NLA forces reappeared in the hills above Tetovo , a key northwest Macedonian town with an ethnic Albanian majority. The insurgents fired down on Macedonian positions using rifles, machine guns and mortars. At that point the NLA controlled at least seven villages to

7139-430: The car, dropped to his knees, and threw the grenade at the police checkpoint but failed to explode. A cordon of Macedonian troops, positioned behind sandbags, unleashed a volley of gunfire at the Albanian. At first he slumped against the car, then fell on the curb, dead. Moments later the father was also shot as he tried to run from the car. Despite photographic evidence of the grenade witnesses later interviewed insisted

7260-414: The case with the parties of the Macedonian political block), depended on whether they were in the governing coalition or not. Despite these political fluctuations, the Albanian parties were included as coalition partners in all post-communist Macedonian governments. According to the Albanian politician Arben Xhaferi , there was systemic discrimination against Albanians in Macedonia. The Albanian flag

7381-575: The city of Bitola were destroyed, and dozens of buildings were damaged. To suppress the riots, the Macedonian government imposed a curfew in Bitola, and Premier Georgievski announced that his cabinet considered declaring a state of war to have greater flexibility in fighting the NLA insurgents. According to the Macedonian Constitution a state of war would give enhanced powers to the President and

SECTION 60

#1732854690234

7502-517: The colonies. Physiocrats , a group of 18th-century French thinkers and writers, developed the idea of the economy as a circular flow of income and output. Physiocrats believed that only agricultural production generated a clear surplus over cost, so that agriculture was the basis of all wealth. Thus, they opposed the mercantilist policy of promoting manufacturing and trade at the expense of agriculture, including import tariffs. Physiocrats advocated replacing administratively costly tax collections with

7623-434: The commander of the Albanian insurgents, Fadil Nimani. After that, the shelling of the place was stopped. Overall, several Albanian civilians, two NLA fighters and several Macedonian soldiers and police officers lost their lives in the clashes over Vaksince. The two Albanian parties in Macedonia condemned the actions of the NLA and the threat to Albanian civilians from the army's artillery fire. Vaksince, like other places in

7744-487: The constitution to declare the Albanians as a second titular nation of the country, recognising Albanian as a second official language , and providing state support for the underground Albanian-language university in Tetovo . Albanians also claimed to represent as much as 30% and even 40% of the country's population, not the 22.9% recorded in the official June 1994 census. In 1994, some Albanian politicians in Macedonia advocated for wider collective political rights. In 1994,

7865-545: The country, though high-ranking members of the group have denied this. The conflict lasted throughout most of the year, although overall casualties remained limited to several dozen individuals on either side, according to sources from both sides of the conflict. With it, the Yugoslav Wars had reached the Republic of Macedonia which had achieved peaceful independence from Yugoslavia in 1991. When it declared its independence from Yugoslavia on 8 September 1991, Macedonia

7986-492: The country. According to the International Crisis Group , there was nearly 3% growth in 1999. The second half of 2000 also saw steady growth, leading to a 5% GDP increase for the year. In January 2001, the government projected a budget surplus for the second year in a row. In 2000 the country's emerging middle class began buying new cars, adding extensions to apartments and planning summer vacations abroad. Although

8107-517: The creation of "parallel authorities" of the Albanians in Macedonia. During the conflict in Kosovo in 1999, Macedonia opened its borders to thousands of Kosovo Albanian refugees who were fleeing into the country. According to figures released by the United Nations High Commissioner for Refugees (UNHCR) , on 17 May there were 229,300 Kosovo Albanian refugees in Macedonia. The number of Albanian refugees in Macedonia at that stage

8228-488: The design of modern monetary policy and are now standard workhorses in most central banks. After the 2007–2008 financial crisis , macroeconomic research has put greater emphasis on understanding and integrating the financial system into models of the general economy and shedding light on the ways in which problems in the financial sector can turn into major macroeconomic recessions. In this and other research branches, inspiration from behavioural economics has started playing

8349-506: The distribution of income among landowners, workers, and capitalists. Ricardo saw an inherent conflict between landowners on the one hand and labour and capital on the other. He posited that the growth of population and capital, pressing against a fixed supply of land, pushes up rents and holds down wages and profits. Ricardo was also the first to state and prove the principle of comparative advantage , according to which each country should specialise in producing and exporting goods in that it has

8470-464: The economy can and should be studied in only one way (for example by studying only rational choices), and going even one step further and basically redefining economics as a theory of everything, is peculiar. Questions regarding distribution of resources are found throughout the writings of the Boeotian poet Hesiod and several economic historians have described Hesiod as the "first economist". However,

8591-405: The father and son died with mobile phones in their hands, claiming that the pair were victims of revenge by police. The strategic position of the NLA units gave them an overview of the town. The front line between the NLA and the Macedonian security forces expanded along the wooded hills adjacent to the city center to the north. The same day that a front opened in Tetovo, the NLA took control of

8712-674: The first large-scale macroeconometric model , applying the Keynesian thinking systematically to the US economy . Immediately after World War II, Keynesian was the dominant economic view of the United States establishment and its allies, Marxian economics was the dominant economic view of the Soviet Union nomenklatura and its allies. Monetarism appeared in the 1950s and 1960s, its intellectual leader being Milton Friedman . Monetarists contended that monetary policy and other monetary shocks, as represented by

8833-423: The first week of the offensive in Kumanovo, on 8 May 2001, at the entrance to the village of Slupčane. Army infantry launched an onslaught, causing insurgents to leave their positions and retreat towards Vaksince. Army helicopters then intercepted them with machine-gun fire and inflicted heavy casualties. That same day, a position of twenty NLA insurgents was destroyed by the Macedonian Army in the "Mining colony" that

8954-536: The following decades, many economists followed Keynes' ideas and expanded on his works. John Hicks and Alvin Hansen developed the IS–LM model which was a simple formalisation of some of Keynes' insights on the economy's short-run equilibrium. Franco Modigliani and James Tobin developed important theories of private consumption and investment , respectively, two major components of aggregate demand . Lawrence Klein built

9075-509: The global economy . Other broad distinctions within economics include those between positive economics , describing "what is", and normative economics , advocating "what ought to be"; between economic theory and applied economics ; between rational and behavioural economics ; and between mainstream economics and heterodox economics . Economic analysis can be applied throughout society, including business , finance , cybersecurity , health care , engineering and government . It

9196-598: The government or the Red Cross . To prevent civilian casualties, government representatives ordered the civilians in Lipkovo to evacuate the village. However, this order was not followed since the NLA insurgents in the village would not allow the International Red Cross to evacuate the civilians. The Mayor of Lipkovo, Husamedin Halili, issued an order opposite to the government's. He told civilians that they would be safer in

9317-424: The growth in the money stock, was an important cause of economic fluctuations, and consequently that monetary policy was more important than fiscal policy for purposes of stabilisation . Friedman was also skeptical about the ability of central banks to conduct a sensible active monetary policy in practice, advocating instead using simple rules such as a steady rate of money growth. Monetarism rose to prominence in

9438-463: The importance of various market failures for the functioning of the economy, as had Keynes. Not least, they proposed various reasons that potentially explained the empirically observed features of price and wage rigidity , usually made to be endogenous features of the models, rather than simply assumed as in older Keynesian-style ones. After decades of often heated discussions between Keynesians, monetarists, new classical and new Keynesian economists,

9559-544: The interests of the Albanians in Macedonia. In the same month, a group calling itself the National Liberation Army (NLA) claimed responsibility for the attacks against the police . Initial reports gave conflicting information about the NLA. Macedonian President Boris Trajkovski claimed that the rebels were primarily Kosovo Liberation Army (UÇK) members who had infiltrated the country from Kosovo . Macedonian officials accused NATO of not doing enough to disarm

9680-449: The market's two roles: allocation of resources and distribution of income. The market might be efficient in allocating resources but not in distributing income, he wrote, making it necessary for society to intervene. Value theory was important in classical theory. Smith wrote that the "real price of every thing ... is the toil and trouble of acquiring it". Smith maintained that, with rent and profit, other costs besides wages also enter

9801-478: The medieval city fortress north of the city center, and started shooting at police stationed in the urban areas. After the initial clash, the Macedonian police pushed the NLA out of Tetovo and captured the medieval fortress. The NLA were pushed back into the surrounding hills where several houses were reportedly burning. Medical officials said one person was killed and at least fourteen injured, including eleven police officers. The government issued an ultimatum asking

9922-437: The most famous passages in all economics," Smith represents every individual as trying to employ any capital they might command for their own advantage, not that of the society, and for the sake of profit, which is necessary at some level for employing capital in domestic industry, and positively related to the value of produce. In this: He generally, indeed, neither intends to promote the public interest, nor knows how much he

10043-419: The north and west of Tetovo, all of which were up in the mountains and easily defensible. On 22 March 2001, tensions soared further in Tetovo, when two Albanian men, a father and a son, were shot dead during a routine search at a police checkpoint. The incident began when their car was stopped and the officer saw the man reach for his pocket. Fearing it was a grenade, the officer panicked and ran. The man exited

10164-484: The north of Kumanovo. This armed group of NLA insurgents, known as the "113 Brigade of the NLA", was led by the Kosovo Albanian Fadil Nimani . On 3 May, the NLA launched another ambush on Macedonian security forces in Vaksince, near Kumanovo, and killed two Macedonian soldiers and kidnapped a third. The three soldiers were on a border patrol which was returning from routine duty when it was ambushed near

10285-503: The pessimistic analysis of Malthus (1798). John Stuart Mill (1844) delimited the subject matter further: The science which traces the laws of such of the phenomena of society as arise from the combined operations of mankind for the production of wealth, in so far as those phenomena are not modified by the pursuit of any other object. Alfred Marshall provided a still widely cited definition in his textbook Principles of Economics (1890) that extended analysis beyond wealth and from

10406-437: The police corps; poor representation in the military officer corps; denial of citizenship to many long-time ethnic Albanian residents of Macedonia as well as discrimination in the process of citizenship applications; and unfair drawing of voting districts which dilutes their voting strength. Because of these reasons and many more, Albanians in Macedonia began to demand greater political rights. These included making amendments to

10527-483: The present, modified by substituting the word "wealth" for "goods and services" meaning that wealth may include non-material objects as well. One hundred and thirty years later, Lionel Robbins noticed that this definition no longer sufficed, because many economists were making theoretical and philosophical inroads in other areas of human activity. In his Essay on the Nature and Significance of Economic Science , he proposed

10648-441: The previous three days the Macedonian security forces had managed to destroy fourteen NLA entrenched positions, eight machine-gun bunkers, seven sniper nests, six control points, three arms storage facilities, and one mortar position. Army officials also stressed that during the operations only selected targets were being hit, to avoid civilian casualties and unnecessary material damage. The most intensive clashes occurred during

10769-409: The price of a commodity. Other classical economists presented variations on Smith, termed the ' labour theory of value '. Classical economics focused on the tendency of any market economy to settle in a final stationary state made up of a constant stock of physical wealth (capital) and a constant population size . Marxist (later, Marxian) economics descends from classical economics and it derives from

10890-429: The purest approximation to the truth that has yet been published" on the subject. The publication of Adam Smith 's The Wealth of Nations in 1776, has been described as "the effective birth of economics as a separate discipline." The book identified land, labour, and capital as the three factors of production and the major contributors to a nation's wealth, as distinct from the physiocratic idea that only agriculture

11011-459: The refugees' presence could disturb the Republic's demographic balance. Macedonians were worried about the possible destructive spill-over effects that could result from the newest phase of the Kosovo conflict and also feared that they had the most to lose. As a Chicago Tribune journalist stated in March 1999, "People are afraid that after Kosovo comes Macedonia." At the same time, insurgents from

11132-502: The region, was then closely monitored by the international missions of the OSCE, NATO and the EU. The Macedonian army and police had no control over Vaksince at times even after the clashes. In autumn 2003 the village was occupied again by the Macedonian army. To this day there are many Albanians in the region who want to join Kosovo. In September 2007 there was a shootout between former NLA fighters and

11253-412: The scope and method of economics, emanating from that definition. A body of theory later termed "neoclassical economics" formed from about 1870 to 1910. The term "economics" was popularised by such neoclassical economists as Alfred Marshall and Mary Paley Marshall as a concise synonym for "economic science" and a substitute for the earlier " political economy ". This corresponded to the influence on

11374-486: The so-called Lucas critique and the presentation of real business cycle models . During the 1980s, a group of researchers appeared being called New Keynesian economists , including among others George Akerlof , Janet Yellen , Gregory Mankiw and Olivier Blanchard . They adopted the principle of rational expectations and other monetarist or new classical ideas such as building upon models employing micro foundations and optimizing behaviour, but simultaneously emphasised

11495-444: The source of the word economy. Joseph Schumpeter described 16th and 17th century scholastic writers, including Tomás de Mercado , Luis de Molina , and Juan de Lugo , as "coming nearer than any other group to being the 'founders' of scientific economics" as to monetary , interest , and value theory within a natural-law perspective. Two groups, who later were called "mercantilists" and "physiocrats", more directly influenced

11616-406: The state or commonwealth with a revenue for the publick services. Jean-Baptiste Say (1803), distinguishing the subject matter from its public-policy uses, defined it as the science of production, distribution, and consumption of wealth . On the satirical side, Thomas Carlyle (1849) coined " the dismal science " as an epithet for classical economics , in this context, commonly linked to

11737-408: The subject of mathematical methods used in the natural sciences . Neoclassical economics systematically integrated supply and demand as joint determinants of both price and quantity in market equilibrium, influencing the allocation of output and income distribution. It rejected the classical economics' labour theory of value in favour of a marginal utility theory of value on the demand side and

11858-402: The subject or different views among economists. Scottish philosopher Adam Smith (1776) defined what was then called political economy as "an inquiry into the nature and causes of the wealth of nations", in particular as: a branch of the science of a statesman or legislator [with the twofold objectives of providing] a plentiful revenue or subsistence for the people ... [and] to supply

11979-471: The subject": Economics is the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses. Robbins described the definition as not classificatory in "pick[ing] out certain kinds of behaviour" but rather analytical in "focus[ing] attention on a particular aspect of behaviour, the form imposed by the influence of scarcity ." He affirmed that previous economists have usually centred their studies on

12100-773: The subsequent development of the subject. Both groups were associated with the rise of economic nationalism and modern capitalism in Europe. Mercantilism was an economic doctrine that flourished from the 16th to 18th century in a prolific pamphlet literature, whether of merchants or statesmen. It held that a nation's wealth depended on its accumulation of gold and silver. Nations without access to mines could obtain gold and silver from trade only by selling goods abroad and restricting imports other than of gold and silver. The doctrine called for importing inexpensive raw materials to be used in manufacturing goods, which could be exported, and for state regulation to impose protective tariffs on foreign manufactured goods and prohibit manufacturing in

12221-401: The village of Tanuševci , north-west of Skopje. During the second offensive, the security forces attacked the NLA positions near the villages of Brest , Malino Malo, Gračani and Gošince , where clashes had taken place earlier in March before the later clashes around Tetovo. The government said the guerrillas fled northwest towards Kosovo, which they "used as a rear base". On 31 March 2001,

12342-468: The village. State radio said that the rebels had claimed the area around Vakcince as their "liberated zone". On the same day, the Macedonian security council decided to engage in a new offensive against the NLA to drive them out of their strongholds in the villages north of Kumanovo. People in the villages held by the NLA were given until 15:00 to evacuate before Macedonian security forces would launch their offensive. Army spokesman Gjordji Trendafilov told

12463-457: The villages north of Tetovo, more than a month after the Macedonian security forces crushed the rebels in an offensive in March 2001. On 8 June 2001, the Macedonian Army and the police launched a major new onslaught against the NLA in their strongholds in the remaining villages that had been occupied since the beginning of May 2001. The main goal of the operation was to secure the Lipkovo dam, which

12584-544: The violence. On 28 April 2001, eight Macedonian police officers were killed in the Vejce Ambush in an NLA ambush. Reports concluded that the attackers must have been informed by radio about the route of the police vehicle. Macedonian sources disclosed that the ambush was executed by Ismail Shinasi (alias Komandant Hoxha), Ceka Ilaz (alias Komandant Qori) and Ceka Bilal (alias Komandant Brada) – all three, and most of their people, were born in Kosovo and were veteran members of

12705-467: The war is not winnable or if the expected costs outweigh the benefits, the deciding actors (assuming they are rational) may never go to war (a decision ) but rather explore other alternatives. Economics cannot be defined as the science that studies wealth, war, crime, education, and any other field economic analysis can be applied to; but, as the science that studies a particular common aspect of each of those subjects (they all use scarce resources to attain

12826-440: The war. The burden of having to address the needs of 360,000 refugees took its toll on Macedonia's economy. Instead of experiencing modest growth as projected for 1999, the Macedonian economy shrank by as much as 10% of GDP for the rest of 1999. Trade with Yugoslavia , Macedonia's main trading partner, had collapsed, causing Macedonia to lose one of its most important export markets and a vital source of raw materials. Consequently,

12947-491: The western part of Macedonia, towards the international border with Albania. They also lived in the north-western part of Macedonia, toward the border with the Yugoslav province of Serbia and the then-UN-administered Kosovo , as well as in the Macedonian capital Skopje and the city of Kumanovo . They also comprised the majority of the population in the Macedonian towns of Tetovo , Gostivar , and Debar . Since independence,

13068-505: The word Oikos , the Greek word from which the word economy derives, was used for issues regarding how to manage a household (which was understood to be the landowner, his family, and his slaves ) rather than to refer to some normative societal system of distribution of resources, which is a more recent phenomenon. Xenophon , the author of the Oeconomicus , is credited by philologues for being

13189-460: The work of Karl Marx . The first volume of Marx's major work, Das Kapital , was published in 1867. Marx focused on the labour theory of value and theory of surplus value . Marx wrote that they were mechanisms used by capital to exploit labour. The labour theory of value held that the value of an exchanged commodity was determined by the labour that went into its production, and the theory of surplus value demonstrated how workers were only paid

13310-553: Was assigned to German troops along their sector of the Macedonian-Kosovar border. Given the mountainous nature of the terrain, there were many dead spots for the observer on the ground. To overcome this disadvantage, the German military integrated the armoured-vehicle-mounted RATAC surveillance radar and the Luna X-2000 UAV. The Luna X-2000 flew a total of 175 sorties, and a number of suspected rebels were arrested. US Army forces of

13431-459: Was banned from public display. The Albanian language was taught in some schools but could not be used for official correspondence. The United States Department of State reported that the following forms of discrimination against ethnic Albanians continued to exist in Macedonia: limited access to Albanian-language media and education; poor representation in public sector jobs; poor representation in

13552-519: Was held by the insurgents. The NLA closed the valves that were used for control of the outflow of water from the dam of the Lipkovo Lake This stopped the supply of water for Kumanovo causing a humanitarian crisis for the civilian population in the city. The Army captured the Lipkovo lake and pushed the NLA back into the village. Unlike Vaksince, Matejče and other villages on the battleground, Lipkovo still had 10,000 people who were not evacuated by

13673-463: Was killed. NLA sources however, confirmed that during the Tetovo offensive of the Macedonian army they had lost seven armed men. The NLA's dislodging from the hills above Tetovo led to a month-long lull in the conflict. During the month-long calm period, a result of the offensive by Macedonian security forces, the government launched roundtable discussions with Macedonian and Albanian political parties on legislative reforms. However, this did not end

13794-404: Was located close to Lojane. On 25 May 2001, Macedonian security forces launched the long-awaited general offensive against the NLA in Kumanovo. Fighting continued into the next day and turned into urban warfare . The police and army infantry had to fight for every house in the large villages of Vaksince and Lojane, two NLA strongholds, as the NLA resisted fiercely. A special police unit called

13915-402: Was more than 11% of the country's population. According to the U.S. Committee for Refugees, around 360,000 Kosovo Albanian refugees repatriated in the second half of 1999. Macedonia's ability to receive refugees was limited, because contingency planning assumed only 20,000 refugees. Despite all the difficulties, Macedonia accepted refugees according to international standards until the end of

14036-421: Was no part of it. By pursuing his own interest he frequently promotes that of the society more effectually than when he really intends to promote it. The Reverend Thomas Robert Malthus (1798) used the concept of diminishing returns to explain low living standards. Human population , he argued, tended to increase geometrically, outstripping the production of food, which increased arithmetically. The force of

14157-605: Was one of the scenes of the Albanian Uprising in Macedonia. The place gained notoriety beyond the borders of the Republic of Macedonia because strong armed clashes between the Albanian insurgents, who belonged to the NLA , and the Macedonian army took place here in May of that year. Albanian fighters killed two Macedonian soldiers and captured a third near the village. The Macedonian army then attacked Vaksince with attack helicopters and artillery fire. The Macedonian troops managed to shoot

14278-892: Was productive. Smith discusses potential benefits of specialisation by division of labour , including increased labour productivity and gains from trade , whether between town and country or across countries. His "theorem" that "the division of labor is limited by the extent of the market" has been described as the "core of a theory of the functions of firm and industry " and a "fundamental principle of economic organization." To Smith has also been ascribed "the most important substantive proposition in all of economics" and foundation of resource-allocation theory—that, under competition , resource owners (of labour, land, and capital) seek their most profitable uses, resulting in an equal rate of return for all uses in equilibrium (adjusted for apparent differences arising from such factors as training and unemployment). In an argument that includes "one of

14399-437: Was recognised as well as the traditional Keynesian insistence that fiscal policy could also play an influential role in affecting aggregate demand . Methodologically, the synthesis led to a new class of applied models, known as dynamic stochastic general equilibrium or DSGE models, descending from real business cycles models, but extended with several new Keynesian and other features. These models proved useful and influential in

14520-409: Was the only ex- Yugoslav republic that managed to secede non-violently from the federation. Because of this, Macedonia was considered one of the bright spots in the former Yugoslavia . Although Macedonia had seceded from Yugoslavia as one of its poorest regions, socio-economic interventions undertaken by the consecutive democratically elected governments managed to improve the economic picture in

14641-456: Was the only supplier of military weapons to Macedonia based on a bilateral military cooperation agreement that started in 1999. Western officials vehemently protested Ukrainian arms shipments to Macedonia, Kyiv was visited by EU Secretary-General Javier Solana , U.S. National Security Adviser Condoleezza Rice , to pressure the Ukrainian government into suspending its arms supplies to Macedonia,

#233766