Economic Models

1. Austrian

1.1. strongest belief in markets

1.2. government is, at best, a 0 sum

1.3. capital capital capital!

1.4. everything is micro

1.5. discount the pain of dislocation and re-adjustment

2. Monetarist

2.1. no theory of capital / weakest on capital theory

2.2. belief in markets

2.3. government has serious role

2.4. aggregate / macro

2.5. more or less accept MV=PT

2.5.1. fix recession by increasing M to spur on additional spending

3. Keynsian

3.1. government can play critical role

3.2. aggregate / macro

3.3. macro markets are moved by the animal spirits

3.4. more or less accept MV=PT

3.4.1. fix recession by increasing T to offset psychological impact of falling transactions