Week 5 Flashcards
John maynar keynes historic context
fall of British economic leadership (second industrial revolution)
success of Germany and USA
WWI
!930s deep economic crisis
Maynerd keynes economic crises response
writes general theory of unemployment
focuses mainly on the causes of unemployment
laissez-faire no longer recipe for economic success
invisible hand no longer solves economic problems
1930s keynes economic crises
environmental crisis
agriculture failure
keynes outlook on unemployment crisis
employment depends on volume of demand, volume of public and private investments
employment cycle keynes
income increases
savings decrease
investment decreases
expenditure decreases
Keynes unemployment analysis and solution
the crisis is a demand crisis
you can stimulate demand through greater gov’t expenditure and lowering taxes
john meynard keynes advocates for
government control, leaving limited freedom to economic forces for adjustments
his view is an alternative to socialism as a response to capitalism
The scholastic french tradition
dates back to the 15th century
champions individual enterprise as driver and contributer to economic prospertiy
dreads taxes and government intervention
the austrian school of economics
rooted in scholastic french tradition
work in the US since 1930s
critical o Keynes
advocates for capitalistic and stateless social order
based on property and freedom of association and contract
The chicago school
milton freedman
criticla of keynes
intense mathmatical modelling for hypothesis testing
monetarism
price levels determined by amount of money in ciruclation
rational expectations
privatization, deregulation
neo classical synthesis (neo-keynesian theory)
advocates for implementation of keynesian policies and economic liberlism
government intervention in the short run to support demand and employment
laissez faire in the long run as the norm
describe Phillips curve
inflation dilemma
1970s high inflation
describes an inverse relationship between inflation and unemployment
reducing one increases the other
risk of stagflation (questioned recently)
ukraine/russia and shortage of food
john K galbraith - questioning wealth
affluent society
the role of advertisement, tech, corporate predation
individual and societal complacence about economic inequity
an economic model for investing in public wealth
describe current trends (neoliberalism)
a theory how to structure economies through free martkets, based on classical economic theory
emphasis on individual importance of individual intitative
important for geography because of global flows of people and moeny are based on neoliberal theories and powerful ppl believe this to be the solution
what does neoliberalism advocate for
states that the market should dictate the rules of society
advocates for limited or no social interventions such as state-funded welfare and healthcare
preference for flexible labour force that cannot claim benefits
