How to End Poverty
... that I have simplified it considerably. Second, the inventors did not first look at the facts and then work out a theory to fit them. That isn’t how theory is developed. For example, the first “sputnik” that circled the earth did not generate a theory; instead, the prior theory generated the first m ...
... that I have simplified it considerably. Second, the inventors did not first look at the facts and then work out a theory to fit them. That isn’t how theory is developed. For example, the first “sputnik” that circled the earth did not generate a theory; instead, the prior theory generated the first m ...
On Cost-Push Theories of Inflation in the Pre
... Here is the essence of the costpush view that general price disturbances stem from non-monetary influences that cause a series of changes in the individual prices of key commodities. Other cost-push propositions that surfaced during the Bullionist debate include the notions of passive money and reve ...
... Here is the essence of the costpush view that general price disturbances stem from non-monetary influences that cause a series of changes in the individual prices of key commodities. Other cost-push propositions that surfaced during the Bullionist debate include the notions of passive money and reve ...
Chapter 10
... 1. In a command economy, government officials set prices for most goods a. They also decide what to manufacture 2. In an economy based on a market system (like the U.S.), prices are set by a kind of interaction 3. This interaction is the effect that demand and supply have on each other 4. Supply and ...
... 1. In a command economy, government officials set prices for most goods a. They also decide what to manufacture 2. In an economy based on a market system (like the U.S.), prices are set by a kind of interaction 3. This interaction is the effect that demand and supply have on each other 4. Supply and ...
Dudley Seers- The cultural Lag - OpenDocs Home
... the general demand deficiencies of the 1930s, and embodied in the sophisticated models of the 1930s and 1960s, turned out after all to be of limited relevance, as did - at least in the view of many - the monetarist policies which partially took their place. Government economists in Western Europe te ...
... the general demand deficiencies of the 1930s, and embodied in the sophisticated models of the 1930s and 1960s, turned out after all to be of limited relevance, as did - at least in the view of many - the monetarist policies which partially took their place. Government economists in Western Europe te ...
History of economic thought Short characteristic of economics
... and firms make choices, how they interact in markets and how government attempts to influence their choices. - e.g. how consumers and producers respond to changes in prices, income and other facts or incentives. • Try to find the most efficient way (e.g. in reducing smoking, drug policy, global warm ...
... and firms make choices, how they interact in markets and how government attempts to influence their choices. - e.g. how consumers and producers respond to changes in prices, income and other facts or incentives. • Try to find the most efficient way (e.g. in reducing smoking, drug policy, global warm ...
Process and Emergence in the Economy
... to convert information about the world into action emerge from experience, and these categories or cognitive props need not fit together coherently in order to generate effective actions. Agents therefore inhabit a world that they must cognitively interpret—one that is complicated by the presence an ...
... to convert information about the world into action emerge from experience, and these categories or cognitive props need not fit together coherently in order to generate effective actions. Agents therefore inhabit a world that they must cognitively interpret—one that is complicated by the presence an ...
cnanges in market equilibrium
... government controls on price of quantity. It allows consumers to pay more so they can buy a good when rationing makes a good otherwise unavailable. ...
... government controls on price of quantity. It allows consumers to pay more so they can buy a good when rationing makes a good otherwise unavailable. ...
History of macroeconomic thought
Macroeconomic theory has its origins in the study of business cycles and monetary theory. In general, early theorists believed monetary factors could not have an impact on 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 word macroeconomics was first used by Ragnar FrischThe generation of economists that followed Keynes synthesized his theory with neoclassical microeconomics to form the neoclassical synthesis. Although Keynesian theory originally omitted an explanation of price levels and inflation, later Keynesians adopted the Phillips curve to model price-level changes. Some Keynesians opposed the synthesis method of combining Keynes's theory with an equilibrium system and advocated disequilibrium models instead. Monetarists, led by Milton Friedman, adopted some Keynesian ideas, such as the importance of the demand for money, but argued that Keynesians ignored the role of money supply in inflation. Robert Lucas and other new classical macroeconomists criticized Keynesian models that did not work under rational expectations. Lucas also argued that Keynesian empirical models would not be as stable as models based on microeconomic foundations.The new classical school culminated in real business cycle theory (RBC). Like early classical economic models, RBC models assumed that markets clear and that business cycles are driven by changes in technology and supply, not demand. New Keynesians tried to address many of the criticisms leveled by Lucas and other new classical economists against Neo-Keynesians. New Keynesians adopted rational expectations and built models with microfoundations of sticky prices that suggested recessions could still be explained by demand factors because rigidities stop prices from falling to a market-clearing level, leaving a surplus of goods and labor. The new neoclassical synthesis combined elements of both new classical and new Keynesian macroeconomics into a consensus. Other economists avoided the new classical and new Keynesian debate on short-term dynamics and developed the new growth theories of long-run economic growth. The Great Recession led to a retrospective on the state of the field and some popular attention turned toward heterodox economics.