5 Famous Economists Flashcards
Who is Adam Smith
Explained how rational self interest in a free-market economy leads to economic well-being.
Equality
Who is David Ricardo
The first to suggest that inflation in BritIn was caused by the excessive issue of bank notes by the Bank of England.
Argued for reduction in protectionism and more free trade.
Who is John Maynard Keynes
Suggested that full employment could only be achieved through government spending.
Once full employment is reached he suggested that markets should be allowed to operate freely.
Who is Freidrich Hayek
Argued for control of interest rates by Central Bank to prevent credit being artificially low. Also suggested that low interest rates lead firms to invest in too many long term projects and insufficient short term projects.
Who is Milton Freidman
Advocate of free markets.
Too many regulations in markets enables firms to set high prices as other firms struggle to enter the market.
Prices are determined in individual markets.
Capitalism is the astounding belief that the most wickedest of men will do the wickedest of things for the greatest good of everyone
Keynes
Keynes
Capitalism is the astounding belief that the most wickedest of men will do the wickedest of things for the greatest good of everyone
Ricardo
There can be no rise in the value of labour without a fall of profits
There can be no rise in the value of labour without a fall of profits
Ricardo
It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest
Smith
Smith
It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest
If you put the federal government in charge of the Sahara Desert, in 5 years there’d be a shortage of sand
Friedman
Friedman
If you put the federal government in charge of the Sahara Desert, in 5 years there’d be a shortage of sand
Keynes
In the long run we are all dead
In the long run we are all dead
Keynes
