Economics

[WizTrader]

Well, Alieun and I both tap into economics a bit.


Well, I've found my self contended to learn about two schools of thought.


Austrian economics and The Chicago school of Economists.


Notable people from these two schools: Friedman, Hayek, Mises and Rothbad.



Well, thats a small backround, but the real point comes to this.


Where can I get more information on the Chicago school?


I can get books on the Austrian school from www.mises.org but I'm having a hard time finding anything other than Friedmans work.



Oh and you can discuss all the economic theorys you want too. Thats always fun.

[MDZ]

Here is a site you might be interested in, it was a video I found on the Chicago school of economics. I didn't watch it, slow internet connection here lol, but thought you might be interested?

http://www.pbs.org/wgbh/commandinghe..._11_a_300.html

[WizTrader]

Originally Posted by FirstConsul

I've heard of Hayek(heard him mentioned on biz channel here LOL, they probably don't know his beliefs ) and Friedman.
I used to support the classic school of economics, i.e. keep the govt out of the economy in bad times, and let the prices and wages and so on adjust so that the economy will recover and be in full employment again.
The Free-ed videos made me think a bit. John Maynard Keynes's theories do make some sense. In one of the videos, it talked about the Aggregate Demand curve(AD), the Short Run Aggregate Supply curve(SRAS), the Long Run Aggregate Supply curve(LRAS). The SRAS and AD adjust like regular supply and demand curves. The LRAS is a straight line in the long term, which symbolizes the long term production capacity of the economy.
When the SRAS and AD are NOT at equilibrium, a recessionary gap or something is caused. When aggregate supply moves to the left corner and aggregate demand stays still, then a recessionary gap is created(think 1930s Great Depression). When it moves towards the upper left corner, then something like the 1970s stagflation is seen.
Keynes thought that during these difficult times, the government should intervene with the economy.
Well, Roosevelt surely did a very poor job. He fixed wages etc. Normally, when there is an inflation, wages and prices fall. But by doing so, he made more people lose jobs etc.
The Federal Reserve also doubled the reserve requirement for banks in the early 1930s, when 1/3 of the US banks were failing. Perhaps a better idea would be to increase liquidity and add money to the system.(But they refused to do that)
Note that the US govt didn't act on Keynes recommendations(Keynes actually wrote a letter to the FDR on that topic)
It does indeed seem that during different times, different policies are needed. When aggregate demand falls short, if the govt can increase that demand then, it will avert a recession. Yet big govt doesn't seem like a good option either.
Anyways, economics does seem intriguing. I'll probably read more on that... Watched like 2 hrs of those videos yesterday, finished my homework at 1 AM ROFL.(Very addictive site Scott)

I do what I can.


I honestly think if you let capitalism take its course as a main body of your economy you will turn out better-but I too am ditching pure libertarian ideas.

[Yee Sian]

help me! I've got this alien subject called econs next year, and i cant understand a thing you guys are saying . Perhaps you can start a nice thread on this one to share your wisdom . I'll be looking foraward to it!

[Investor]

Originally Posted by Yee Sian

help me! I've got this alien subject called econs next year, and i cant understand a thing you guys are saying . Perhaps you can start a nice thread on this one to share your wisdom . I'll be looking foraward to it!

Yee Sian, you can either go to the library to borrow an introductory economics textbook or even better go to a bookstore and buy one. Read through it to gain a basic understanding of the core concepts in the two main branches of the subject: Microeconomics and Macroeconomics.

You can also read The Economist magazine which covers lots of economics issues. It's available in print edition and online at www.economist.com.

Give yourself time to study economics and it won't be alien to you anymore. You must have a fundamental knowledge of economics before you can join in the discussion on the forum and know what the other members are talking about.

I hope this helps you.

[Yee Sian]

Haha, thanks a lot. I'll be on them when im not so busy.

Glad to see you up and posting. Have a nice time