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Keynesian or Classical Economic Theory?


Sohan

Which do you find most valid economic theory?  

3 members have voted

  1. 1. Which do you find most valid economic theory?

    • Keynesian Theory
      2
    • Classical Theory
      1
    • NeoClassical or Marginalist Economics
      0


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Personally, I prefer the Keynesian macroeconomic approach, with its assumption of an economic model which was qualitatively different from microeconomic models, yet one that maintains its relationship to the underlying microeconomic behaviors.

I realize that flaws exist, such as Keynes' assumption that marginal labor productivity decreases with expanding employment (an assumption that is incompatible with Okun's Law---which describes the relationship between the change in the rate of unemployment and the difference between actual and potential real GDP), but it can't be denied that Keynes' support for interventionist government policy (the use of fiscal and monetary measures to minimize adverse effects of economic downturns and booms) has made a profound impact on the stability of the global economy.

What do you think?

:)

With respect,

Sohan

"If I cannot become one of extraordinary accomplishment, I will not walk the earth." Zen Master Nakahara Nantenbo


"A man who has attained mastery of an art reveals it in his every action." Samuarai maxim


"Knowing others is wisdom; knowing yourself is Enlightenment." Lao-Tzu

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Well, I can't really answer this one very well...a little over my head.

In junior college, I took micro- and macroeconomics classes, and I did enjoy them. However, I enjoyed the macro class more, as it seemed like it wasn't as attached to formulas and such.

You got some deep stuff going here, Sohan! :)

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Well, I can't really answer this one very well...a little over my head.

In junior college, I took micro- and macroeconomics classes, and I did enjoy them. However, I enjoyed the macro class more, as it seemed like it wasn't as attached to formulas and such.

You got some deep stuff going here, Sohan! :)

:wink:

With respect,

Sohan

"If I cannot become one of extraordinary accomplishment, I will not walk the earth." Zen Master Nakahara Nantenbo


"A man who has attained mastery of an art reveals it in his every action." Samuarai maxim


"Knowing others is wisdom; knowing yourself is Enlightenment." Lao-Tzu

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I go with the keynesian macroeconomic approach also. The classic view is way to far away from the reality, based on rationality and stuf.

I do enjoy learning both though, since you can only truly understand keynesian when you also know his precessors.

Microeconomics is more my thing though. Just love game theory! :D

Tom

Train harder!


Currently: 7th kyu, yellow belt

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Personally, I prefer the Keynesian macroeconomic approach, with its assumption of an economic model which was qualitatively different from microeconomic models, yet one that maintains its relationship to the underlying microeconomic behaviors.

I realize that flaws exist, such as Keynes' assumption that marginal labor productivity decreases with expanding employment (an assumption that is incompatible with Okun's Law---which describes the relationship between the change in the rate of unemployment and the difference between actual and potential real GDP), but it can't be denied that Keynes' support for interventionist government policy (the use of fiscal and monetary measures to minimize adverse effects of economic downturns and booms) has made a profound impact on the stability of the global economy.

What do you think?

:)

With respect,

Sohan

What the Sam Hill are you talking about?!?!? :-?

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What the Sam Hill are you talking about?!?!? :-?

Just making conversation....

:P

With respect,

Sohan

"If I cannot become one of extraordinary accomplishment, I will not walk the earth." Zen Master Nakahara Nantenbo


"A man who has attained mastery of an art reveals it in his every action." Samuarai maxim


"Knowing others is wisdom; knowing yourself is Enlightenment." Lao-Tzu

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  • 2 weeks later...

Sohan, I see you are interested in economics. Did you study it? Maby you can recommend me some books or something?

Thanks in advance!

Tom

Train harder!


Currently: 7th kyu, yellow belt

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Sohan, I see you are interested in economics. Did you study it? Maby you can recommend me some books or something?

Thanks in advance!

Tom

Got my MBA back in 2001, but it was in marketing. I've regretted since not pursuing accounting or finance, since it appears that's where the jobs are today. Jobs in econ are not easy to find unless you work for the government.

Books? Depends on your current educational level. I think you said you're 18, so I assume you haven't had too much business coursework in school yet. If you are ambitious, you could start with Adam Smith's Wealth of Nations, or John Maynard Keynes' General Theory of Employment, Interest, and Money, though if you have no economics background at all, Economics for Dummies is a surprisingly good introduction. It was written by Sean Flynn, who is a professor at Vassar.

The cool thing about Professor Flynn is that he is an expert in Aikido, as well as economics!

With respect,

Sohan

"If I cannot become one of extraordinary accomplishment, I will not walk the earth." Zen Master Nakahara Nantenbo


"A man who has attained mastery of an art reveals it in his every action." Samuarai maxim


"Knowing others is wisdom; knowing yourself is Enlightenment." Lao-Tzu

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