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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 Keyne's demand management and government intervention proposals, stating that these create distortions in the market and force out the more efficient private firms.

*'''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 [[fiscal policy]] as a means of correction 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 [[fiscal policy]] as a means of correcting market failure.

==Sources==

==Sources==