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Homework answers / question archive / What are the doctrines of modern macroeconomics?
What are the doctrines of modern macroeconomics?
Keynesian economics in the 1930s was the first departure from Classical economics since the time of Adam Smith in the 1700s. Just as Adam Smith is the Father of Economics, John Maynard Keynes is the Father of Macroeconomics.
Since Keynesian economics, a few more revisions have been made:
| monetarism | the idea that government should simply control the money supply, setting it equal to GDP, but do nothing else |
| the new classical economics | based on the theory of Rational Expectations, which states that fiscal and monetary policies are no longer as effective because they are anticipated by businesses and individuals who include them in their planning |
| supply-side economics | also called Reaganomics, which advocates stimulating the economy by working to increase supply rather than demand |
