NeoClassic » neoclassical synthesis

Keynesian Macro Concepts in Neoclassical Synthesis

Neo — Thu, 10 Sep 2009 12:52:39 +0000

“The difficulty lies not in the new ideas, but in escaping from the old ones,” wrote British economist John Maynard Keynes in his 1935 text The General Theory of Employment, Interest and Money. “As these old ideas ramify, for those brought up as most of us have been, into every corner of our minds.” [...]

Keynesian Theory in Neoclassical Economics

Neo — Wed, 09 Sep 2009 12:50:40 +0000

The story of the rise of Keynesian economics is fascinating. From the late 19th century onwards, neoclassical economics theory dominated the mainstream discourse of macro and microeconomics. Under the assumption that humans are rationale and their decisions are rooted in efforts to maximize the utility of their purchasing power, neoclassical economics theory stressed the [...]

The Creators of Neoclassical Economics

Neo — Tue, 08 Sep 2009 12:48:20 +0000

The creators of neoclassical economics differentiated from other schools of economics in their understanding of what determines the utility of a commodity in the market. At the height of the Industrial Revolution, the market place was understood in terms of classical economic theory. In his text The Wealth of Nations, Adam Smith explained that [...]