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About Classical Economics: Say's Law
1. Classical economics believed that supply creates its own demand and saving is irrational. Keynesian economics refuted Say's law and established stable relationships between consumption, income, inflation and unemployment. 2. Early macroeconomic schools included monetarism, which focused on the stable relationship between money demand and the quantity theory of money, and neo-Keynesianism, which synthesized neoclassical and Keynesian ideas using models like the IS/LM model. 3. Later developments included rational expectations theory, real business cycle theory, new Keynesian theory using DSGE models, and the credit view focusing on financial frictions and credit channels.
Detailed Information
| Author: | ['ARBAB RAJPUT'] |
|---|---|
| Publication Year: | 2022 |
| Pages: | 24 |
| Language: | English |
| Format: | |
| Price: | FREE |
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