Economists Views Flashcards
1
Q
Hayek
A
Importance free market to ensure price signalling mechanism
Believed rposperity of society driven by creativity, entrepreneurship and innovation
Inflation increadibly dangerous
2
Q
Hayek on monetary policy
A
Opposed low interest rates as could lead to misallocation of resources and ppor investments- accounted for 2001 crash 2008 crash and great depression
3
Q
Adam smith books
A
Wealth of nations
- division of labour- specilaisation as get better at one task
- absolute adv- countries should specialise in what they can produce with lower opp cost thus ncrease oecrall output
- people repsond to econ incentives and society benefits if motivated to work, markets will prdocue better outcomes than gov interventiosn- free market
4
Q
Nudge theory
A
Thaler and sunstein
