ronki23
Well-Known Member
I'm getting a bit confused here but I thought there were two main schools of economics :
NeoClassical Consensus: developed by Adam Smith and where the market is free from the government. Also known as economic liberalism?
Keynesianism: developed by John Maynard Keynes and where the goverment intervenes in the economy.
NeoClassical synthesis: NeoClassical economics applied to microeconomics i.e. consumer behaviour and the business' response. Macroeconomics is Keynesianism so various stimulus packages, tax increases, etc.
Monetarism: Developed by Milton Freidman. This is where I'm confused because Monetarism is supposed to be the opposite of Keynesianism but I thought the opposite of Keynesianism was the NeoClassical consensus?
I thought the 'answer' to the Keynesian vs Classical economics was the NeoClassical Synthesis so what's the reason for monetarism?
NeoClassical Consensus: developed by Adam Smith and where the market is free from the government. Also known as economic liberalism?
Keynesianism: developed by John Maynard Keynes and where the goverment intervenes in the economy.
NeoClassical synthesis: NeoClassical economics applied to microeconomics i.e. consumer behaviour and the business' response. Macroeconomics is Keynesianism so various stimulus packages, tax increases, etc.
Monetarism: Developed by Milton Freidman. This is where I'm confused because Monetarism is supposed to be the opposite of Keynesianism but I thought the opposite of Keynesianism was the NeoClassical consensus?
I thought the 'answer' to the Keynesian vs Classical economics was the NeoClassical Synthesis so what's the reason for monetarism?