1. Schools of economic thought Flashcards
What is the orthodox mainstream view of economics based on?
The work of neoclassical economists
What are alternatives to orthodoxy often known as?
Heterodox economics
How did the orthodox school develop?
A linear progression from classical to neoclassical to mainstream
What is theoretical monism?
Later schools of thought replacing earlier ones. A unified framework with methodological consistency whcih is reductionist regarding complex ideas into basic
What is the heterodox view of
What is the heterodox view of the progression of economic thought?
That schools of thought can coexist
What is the heterodox perspective known as with regards to the progression of economic thought?
Theoretical pluralism
What are the two main schools that emerged from classical economics?
- Marxian economics
- Neocassical economics
List the main heterodox schools of thought
Institutional economics
Neo-Ricardian economics
Radical economics
Post-Keynesian economics
Austrian economics
What was the prime interest of classical economics
prime focus was of interest is economic growth and development
what did development depend on in the classical economic model
development depends on investment by profit recipients, surplus generates growth through investment
what do profits depend on in classical economics
the factor distribution of income between profit rent and wages
what ensures regular profits and investment in classical economics
a permanent surplus is present [implying market power], ensuring regular profits and investment
Who are some of the key classical economists?
Smith, Ricardo, Mill
What are some of the fundamental ideas of neoclassical economics?
Based on rational choice, market learning, utility functions and is individualistic