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→Schools of Thought: Fixed a typo and added a line to explain monetarism (It said what monetarism IS NOT - we should add what it IS)
==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 1930's, 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 Keyne's demand management and government intervention proposals, stating that these create distortions in the market and force out the more efficient private firms.
*'''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.
==Further reading==
==Further reading==
* Buchholz, Todd G. ''New Ideas from Dead Economists: An Introduction to Modern Economic Thought'' (2007), [http://www.amazon.com/New-Ideas-Dead-Economists-Introduction/dp/0452288444/ref=sr_1_2?ie=UTF8&qid=1254858338&sr=8-2-fkmr0 excerpt and text search], by conservative economist
* Buchholz, Todd G. ''New Ideas from Dead Economists: An Introduction to Modern Economic Thought'' (2007), [http://www.amazon.com/New-Ideas-Dead-Economists-Introduction/dp/0452288444/ref=sr_1_2?ie=UTF8&qid=1254858338&sr=8-2-fkmr0 excerpt and text search], by conservative economist