Neoclassical Economics Vs. Keynesian Economics

The average growth peaked during 2003-2008, but most countries have been strongly impacted by the 2008 financial crisis, which led to prolonged period of recession. In Central and Eastern European countries, prior to downturn, large, relatively cheap capital inflows entered the economy, creating credit, consumption and real estate booms. During crisis, problems such as declining export performance, sizeable external liabilities, highly leveraged firms and quickly expanding general government debt, were further exacerbated by low growth and poor adjustment capacity. Growth rebounded on the account of increased trade with the Euro Area, inflow of European Union funds, low commodity prices and higher consumption. At the same time, low commodity prices, slowdown in China, international sanctions for Russia and political instability led to output contraction in the former Soviet Union countries (World Bank, Global Economic Prospects,

Keynesian are those manipulating the demand of goods and services even though Keynesian disregard the role of the money supply in our economy and how its affecting our GDP (Gross Domestic Product). While, Monetarist is the money supply in what controls our economy and in how controlling the supply of money can influences inflation. In my perspective, the most accurate among the two economics is Keynesian because of how our government is being selfish. According to the Keynesian Economics Is Destroying U.S Growth, "USA lost 3.2 million jobs to China alone since 2001." By losing millions of jobs to China, U.S. seems declining and elevating foreign country with no loyalties. U.S. is not giving the right amount of money as a return for the right

The growth began before the financial crisis that started in 2007, where the global economy enjoyed a long period of sustained economic growth

Economic crisis has precipitated many changes throughout the course of history. Whether it is the great depression of the 1930’s, the Latin Debt crisis in the early 1980’s or more

The neoclassical approach assumes that market equilibrium freely adjusts accordingly whenever demand and supply aggregate are indirect proportional hence no need for government policies,

The current economic crisis has a number of dimensions that are crucial. During this time there was a moment to represent break up to form interlocking arrangements to govern the world economy. There were several attempts to resolve the crises that arose from the central contradiction. This was within capitalism between the creation of profits and the realization of those profits in the sphere of production, circulation and exchange. These crises have led to a build-up of debts for both corporate and household debt. The crises also destabilized the returns of the international monetary resulting in trading deficit even with the most powerful nations. The crises also affected the low commodities prices ecologically. In an attempt to maintain these crises through strategic management policy they were a drastic change that affected the economy in a more severe manner in 2008. This was far the worse economy crises that affected many countries seeking for survival tactics. For China, it was a different case as it shows a remarkable growth in its economy despite the crises that threatened the economy globally.

The first of all, the existence of uncertainty, this is one of the key elements of post-Keynesian analysis. Because of the existence of uncertainty that the future is unknown and unknowable so that economic agents?f expectations can be easily frustrated. Market forces cannot account for the unknowability and unpredictability of the future and so can only disseminate incomplete, even misleading, information. As the future unfolds and become the present Joan Robinson suggests that, continues adjustment must be made. This process proceeds indefinitely without equilibrium ever being achieved, let alone maintained. Thus history matters. 4

Financial crisis of 2007-2008 is widely considered to be the worst financial crisis since the Great Depression of 1930s. The origin of this big storm dated back to the high home prices of the United States. After America’s entire investment banking system was attacked, many industries such as auto industry also went bankrupt. Unfortunately, it spread quickly to the whole world, causing huge damages to the global economy. Therefore, my study will focus on the effects of the financial crisis of 2007-2008. Not only the effects on advanced and developing countries, but also the effects that can still be felt today.

The study of trade where, there is limited resources is available is called economics and it is divided into two parts:

economic crisis in its history, is a process that have been evolving throughout the years and it

As stated by Gans, King & Mankiw, 2011, market equilibrium occurs when demand equals supply, and no tendency for price to change. At equilibrium, every consumer, firms, or nations are satisfied with the present economic market conditions. It means that market clearing price has been achieved. The consumers get all the quantity of the goods they require, at a favorable market price. At the same time, suppliers sell all the commodities produced at a price equal or slightly above the marginal cost of production; hence, no loss. Also, both buyers and the sellers benefit by gaining a bargaining power. For instance, when prices are at equilibrium, consumers will receive bargains even when the

The debate over time on economic growth has certainly changed many thing and our concern and policy implications also advanced a lot. We do not count economic growth in terms of bullion but Gross Domestic Product. The old age of extensive mercantile protective policy on International Trade seems to be an idea of past. Trade and Specialization had flourished. There are international organizations like IMF, World Bank to counter Economic Disasters and certainly in times of recession Government isn 't cutting expenditures and raising taxes to maintain budget surplus, as they did on the times of Great Depression. We can feel proud over the fact that we have better resources, management, policy implications and analytical framework than ever. But our prides falter when we look at the state of present economy. The recession of 2009 economy which caused a worldwide financial collapse raised question whether really over time we learned more and even if we are better equipped than the past, is it enough? The answer to such a question is not easy and it raises a lot of questions and all answers which we present to solve the problems itself raised contradiction. After all, the recession of 2009 showed that the idea of an global economy without any interference by government may not always led to the best possible outcome through 'invisible hand ' of Adam Smith, but to disaster in the whole if there are certain misguiding mechanics presents to

The debate over time on economic growth has certainly changed many thing and our concern and policy implications also advanced a lot. We do not count economic growth in terms of bullion but Gross Domestic Product. The old age of extensive mercantile protective policy on International Trade seems to be an idea of past. Trade and Specialization had flourished. There are international organizations like IMF, World Bank to counter Economic Disasters and certainly in times of recession Government isn 't cutting expenditures and raising taxes to maintain budget surplus, as they did on the times of Great Depression. We can feel proud over the fact that we have better resources, management, policy implications and analytical framework than ever. But our prides falter when we look at the state of present economy. The recession of 2009 economy which caused a worldwide financial collapse raised question whether really over time we learned more and even if we are better equipped than the past, is it enough? The answer to such a question is not easy and it raises a lot of questions and all answers which we present to solve the problems itself raised contradiction. After all, the recession of 2009 showed that the idea of an global economy without any interference by government may not always led to the best possible outcome through 'invisible hand ' of Adam Smith, but to disaster in the whole if there are certain misguiding mechanics presents to

The global economy has been evolving over time; there are patterns that have emerged which indicate similarities and differences between the past and the present century. In this paper I will analyze how the global economy has changed and what contributed to those changes.

The recent global financial turmoil started on July 2007 ,mainly in the USA and spread among developed nations in the later part of 2008 and subsequently shifted to the developing nations .this crisis consisted of some prime drawbacks not only for the developed countries but also for developing countries .the most talked about issue in the recent financial arena in the global financial crisis ,which started to show its effect in the middle of the year 2007.the turmoil ,however ,was rooted in the subprime mortgage crisis that began in mid -2007.the massive global crises ,already being dubbed by some as the great Recession since the great depression of the 1930s,began since the end of 2007with the subprime montage crisis in the USA .it subsequently and quickly spread to the international financial system, resulting in negative growth rates in key countries and regions ,including the US,UK and Japan .many developing countries were also infected by the contagion, from China, Brazil and South Africa to the countries of South Asia and Latin America. Asian countries were more affected by a strong recession in the USA Bangladesh