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Economic Models by Mind Map: Economic Models
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Economic Models

Monetarist

no theory of capital / weakest on capital theory

belief in markets

government has serious role

aggregate / macro

more or less accept MV=PT

fix recession by increasing M to spur on additional spending

Austrian

strongest belief in markets

government is, at best, a 0 sum

capital capital capital!

everything is micro

discount the pain of dislocation and re-adjustment

Keynsian

government can play critical role

aggregate / macro

macro markets are moved by the animal spirits

more or less accept MV=PT

money supply * velocity = prace level * transactions

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