Changes

== Development of Macroeconomics ==

== Development of Macroeconomics ==

Macroeconomics is a relatively new field of study, gaining attention during the 1930's; with the term first being used by the Norwegian nobel prize-winning economist Ragnar Frisch<ref>http://cepa.newschool.edu/het/profiles/frisch.htm</ref> although naturally the principles upon which it is founded have been in existence far longer. During the 1930's it became possible for the first time to collect increasingly detailed economic data on national income, balance of trade and the current account; allowing for a more precise analysis of the entire national economy.  

Macroeconomics is a relatively new field of study, gaining attention during the 1930s; with the term first being used by the Norwegian nobel prize-winning economist Ragnar Frisch<ref>http://cepa.newschool.edu/het/profiles/frisch.htm</ref> although naturally the principles upon which it is founded have been in existence far longer. During the 1930s it became possible for the first time to collect increasingly detailed economic data on national income, balance of trade and the current account; allowing for a more precise analysis of the entire national economy.  

=== The Great Depression ===

=== The Great Depression ===

==Schools of Thought==

==Schools of Thought==

Since the 1930's, two main schools of macroeconomic thought have developed, although within these other sub-groups exist. The two schools are:

Since the 1930s, two main schools of macroeconomic thought have developed, although within these other sub-groups exist. The two schools are:

*'''Monetarism'''- advocated by economists such as [[Milton Friedman]] and [[Anna Schwartz]], monetarism rejects Keynes' demand management and government intervention proposals, stating that these create distortions in the market and force out the more efficient private firms. Rather, monetarism seeks to understand changes in the economy through the lens of the money supply.

*'''Monetarism'''- advocated by economists such as [[Milton Friedman]] and [[Anna Schwartz]], monetarism rejects Keynes' demand management and government intervention proposals, stating that these create distortions in the market and force out the more efficient private firms. Rather, monetarism seeks to understand changes in the economy through the lens of the money supply.

*'''Keynesian'''- this school stems from the original work of [[John Maynard Keynes]], and uses the principal of [[aggregate demand]] to explain unemployment and changing levels of economic growth. Keynesian economists usually advocate demand management or [[fiscal policy]] as a means of correcting market failure.

*'''Keynesian'''- this school stems from the original work of [[John Maynard Keynes]], and uses the principal of [[aggregate demand]] to explain unemployment and changing levels of economic growth. Keynesian economists usually advocate demand management or [[fiscal policy]] as a means of correcting market failure.

* Coats, A. W. Bob ''The Development of Economics in Western Europe since 1945'' 1999 [http://www.questia.com/PM.qst?a=o&d=109285982 online edition]

* Coats, A. W. Bob ''The Development of Economics in Western Europe since 1945'' 1999 [http://www.questia.com/PM.qst?a=o&d=109285982 online edition]

* Dorfman, Joseph. ''The Economic Mind in American Civilization,'' (5 vol 1947-1959), thorough coverage down to 1933.  

* Dorfman, Joseph. ''The Economic Mind in American Civilization,'' (5 vol 1947-1959), thorough coverage down to 1933.  

* Eatwell, John  et al eds. ''The New Palgrave Dictionary of Economics'' 3 vol 1998;  

* Eatwell, John  et al. eds. ''The New Palgrave Dictionary of Economics'' 3 vol 1998;  

** 2nd edition (8 vol 2008), edited by Steven Durlauf and Lawrence Blume     

** 2nd edition (8 vol 2008), edited by Steven Durlauf and Lawrence Blume     

*Ekelund, Robert B., and Robert F. Hebert. ''A History of Economic Theory and Method'' (2007)  

*Ekelund, Robert B., and Robert F. Hebert. ''A History of Economic Theory and Method'' (2007)