Related Research Articles
Keynesian economics are the various macroeconomic theories and models of how aggregate demand strongly influences economic output and inflation. In the Keynesian view, aggregate demand does not necessarily equal the productive capacity of the economy. Instead, it is influenced by a host of factors – sometimes behaving erratically – affecting production, employment, and inflation.
Milton Friedman was an American economist and statistician who received the 1976 Nobel Memorial Prize in Economic Sciences for his research on consumption analysis, monetary history and theory and the complexity of stabilization policy. With George Stigler and others, Friedman was among the intellectual leaders of the Chicago school of economics, a neoclassical school of economic thought associated with the work of the faculty at the University of Chicago that rejected Keynesianism in favor of monetarism until the mid-1970s, when it turned to new classical macroeconomics heavily based on the concept of rational expectations. Several students, young professors and academics who were recruited or mentored by Friedman at Chicago went on to become leading economists, including Gary Becker, Robert Fogel, Thomas Sowell and Robert Lucas Jr.
In economics, stagflation or recession-inflation is a situation in which the inflation rate is high or increasing, the economic growth rate slows, and unemployment remains steadily high. It presents a dilemma for economic policy, since actions intended to lower inflation may exacerbate unemployment.
John Maynard Keynes, 1st Baron Keynes was a British economist and philosopher whose ideas fundamentally changed the theory and practice of macroeconomics and the economic policies of governments. Originally trained in mathematics, he built on and greatly refined earlier work on the causes of business cycles. One of the most influential economists of the 20th century, he produced writings that are the basis for the school of thought known as Keynesian economics, and its various offshoots. His ideas, reformulated as New Keynesianism, are fundamental to mainstream macroeconomics.
Monetarism is a school of thought in monetary economics that emphasizes the role of governments in controlling the amount of money in circulation. Monetarist theory asserts that variations in the money supply have major influences on national output in the short run and on price levels over longer periods. Monetarists assert that the objectives of monetary policy are best met by targeting the growth rate of the money supply rather than by engaging in discretionary monetary policy. Monetarism is commonly associated with neoliberalism.
Henry Stuart Hazlitt was an American journalist who wrote about business and economics for such publications as The Wall Street Journal, The Nation, The American Mercury, Newsweek, and The New York Times.
Paul Anthony Samuelson was an American economist who was the first American to win the Nobel Memorial Prize in Economic Sciences. When awarding the prize in 1970, the Swedish Royal Academies stated that he "has done more than any other contemporary economist to raise the level of scientific analysis in economic theory". Economic historian Randall E. Parker has called him the "Father of Modern Economics", and The New York Times considers him to be the "foremost academic economist of the 20th century".
The General Theory of Employment, Interest and Money is a book by English economist John Maynard Keynes published in February 1936. It caused a profound shift in economic thought, giving macroeconomics a central place in economic theory and contributing much of its terminology – the "Keynesian Revolution". It had equally powerful consequences in economic policy, being interpreted as providing theoretical support for government spending in general, and for budgetary deficits, monetary intervention and counter-cyclical policies in particular. It is pervaded with an air of mistrust for the rationality of free-market decision making.
The Failure of the "New Economics" subtitled An Analysis of The Keynesian Fallacies, (1959) is a book by Henry Hazlitt offering a detailed critique of John Maynard Keynes' work The General Theory of Employment, Interest and Money (1936).
In monetary economics, the quantity theory of money is one of the directions of Western economic thought that emerged in the 16th-17th centuries. The QTM states that the general price level of goods and services is directly proportional to the amount of money in circulation, or money supply. For example, if the amount of money in an economy doubles, QTM predicts that price levels will also double. The theory was originally formulated by Renaissance mathematician Nicolaus Copernicus in 1517, and was influentially restated by philosophers John Locke, David Hume and Jean Bodin. The theory experienced a large surge in popularity with economists Anna Schwartz and Milton Friedman's book A Monetary History of the United States, published in 1963.
Abraham "Abba" Ptachya Lerner was a Russian-born American-British economist.
The permanent income hypothesis (PIH) is a model in the field of economics to explain the formation of consumption patterns. It suggests consumption patterns are formed from future expectations and consumption smoothing. The theory was developed by Milton Friedman and published in his A Theory of Consumption Function, published in 1957 and subsequently formalized by Robert Hall in a rational expectations model. Originally applied to consumption and income, the process of future expectations is thought to influence other phenomena. In its simplest form, the hypothesis states changes in permanent income, rather than changes in temporary income, are what drive changes in consumption.
New classical macroeconomics, sometimes simply called new classical economics, is a school of thought in macroeconomics that builds its analysis entirely on a neoclassical framework. Specifically, it emphasizes the importance of rigorous foundations based on microeconomics, especially rational expectations.
The following outline is provided as an overview of and topical guide to economics:
Steven Pressman is an American economist. He is a former Professor of Economics and Finance at Monmouth University in West Long Branch, New Jersey. He has taught at the University of New Hampshire and Trinity College in Hartford, Connecticut.
Following the global financial crisis of 2007–2008, there was a worldwide resurgence of interest in Keynesian economics among prominent economists and policy makers. This included discussions and implementation of economic policies in accordance with the recommendations made by John Maynard Keynes in response to the Great Depression of the 1930s, most especially fiscal stimulus and expansionary monetary policy.
The Keynesian Revolution was a fundamental reworking of economic theory concerning the factors determining employment levels in the overall economy. The revolution was set against the then orthodox economic framework, namely neoclassical economics.
Macroeconomic theory has its origins in the study of business cycles and monetary theory. In general, early theorists believed monetary factors could not affect real factors such as real output. John Maynard Keynes attacked some of these "classical" theories and produced a general theory that described the whole economy in terms of aggregates rather than individual, microeconomic parts. Attempting to explain unemployment and recessions, he noticed the tendency for people and businesses to hoard cash and avoid investment during a recession. He argued that this invalidated the assumptions of classical economists who thought that markets always clear, leaving no surplus of goods and no willing labor left idle.
The post-war displacement of Keynesianism was a series of events which from mostly unobserved beginnings in the late 1940s, had by the early 1980s led to the replacement of Keynesian economics as the leading theoretical influence on economic life in the developed world. Similarly, the allied discipline known as development economics was largely displaced as the guiding influence on economic policies adopted by developing nations.
Throughout modern history, a variety of perspectives on capitalism have evolved based on different schools of thought.
References
- ↑ "This House Believes that We Are All Feminists Now". The Oxford Student. 2013-03-04. Retrieved 2023-01-23.
- ↑ Walters, Suzanna Danuta (2018-10-04). "We Are All Feminists Now". Ms. Magazine. Retrieved 2023-01-23.
- ↑ Carl B. Turner (1969) An analysis of Soviet views on John Maynard Keynes, Duke Univ Press, p52
- ↑ "We Are All Keynesians Now". Time . December 31, 1965. Archived from the original on October 23, 2008. Retrieved 2008-12-16.
- ↑ Gerstle, Gary, The Rise and Fall of the Neoliberal Order: America and the World in the Free Market Era (New York: Oxford University Press, 2022), p. 46. Hazlitt, Henry. "The Policy is Inflation". Newsweek, July 5, 1954. Reprinted in Doolittle, Marc, ed., Business Tides: The Newsweek Era of Henry Hazlitt , p. 353. Retrieved April 2, 2023.
- ↑ "Letter: Friedman & Keynes". Time . February 4, 1966. Retrieved 2021-02-14.
- ↑ Jeffrey Kluger (October 22, 2012). "Viewpoint: The Problem with the "We Are All…" Trope". time.com. Retrieved 11 February 2015.
- ↑ John Meachan (February 6, 2009). "We Are All Socialists Now". newsweek.com. Retrieved 11 February 2015.
- ↑ Pearlstein, Steven (November 26, 2008). "Keynes on Steroids". The Washington Post. Retrieved 2008-12-16.
- ↑ "Nixon Reportedly Says He Is Now a Keynesian". The New York Times, Reuters. January 7, 1971. Retrieved 2021-02-14.
- ↑ Tempest, Matthew (10 June 2002). "Mandelson: we are all Thatcherites now". The Guardian . London.
- ↑ "We are all Keynesians now". The Boston Globe . November 25, 2008. Retrieved 2008-12-16.
- ↑ Fox, Justin (October 23, 2008). "The Comeback Keynes". Time . Archived from the original on October 26, 2008. Retrieved 2008-12-16.
 | This economic theory related article is a stub. You can help Wikipedia by expanding it. |