The Economic Schools Of Thought

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Freshwater Economics Macroeconomic schools of thought would be prudent to accept certain aspects of the views of other schools of thought to better understand the scope of economic efficiency through the use of various models aimed at understanding the implications that all actions affect outcome. Like other economic schools of thought, Freshwater developed from previous schools of thought as new macroeconomic ideas were discussed and disputed. Neoclassical synthesis was a postwar movement in economics that absorbed the macroeconomic theories of John Maynard Keynes and the theories of neoclassical economics to formulate a synthesis of Keynesian macroeconomics and neoclassical microeconomics. John Hicks developed this theory, presenting it in 1937 and mathematical economist Paul Samuelson coined the term “synthesis” in his influential textbook, Economics. Representing such adaptations that helped shape consumer decision making and consumer theory, neoclassical synthesis originally focused on microeconomics using a comprehensive mathematics framework. Unforeseen at the time, it laid the groundwork as the first step towards Freshwater economics. The second step was led by Milton Friedman and Friedrich Hayek at the University of Chicago. While Friedman worked on re-writing our understanding of The Great Depression, he intended to show that monetary policy by the central bank was at fault, implying that a laissez-faire government fiscal policy would have been better
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