Classical and Neoclassical Economists: Adam Smith and John Maynard Keynes

(Tom Gorman (2003)), "Smith could not prove the existence of this kind of hand" but he proposed many examples of working in society. Everyone produces the amount of meat, bread, candlesticks that he thinks right. Everyone buys meat, bread, candlesticks that their family needs. Please tell me the production volume.

The origin of economics began in 1776, the first economist Adam Smith who advocated the "classical economics" theory, followed by John Maynard Keynes. "Keynesian economics", he proposed a book "General Theory of Employment". In response to the Great Depression of the 1930s, published in 1936, interest and money. (Skousen 2007, 3-9) The composition of Neoclassicalism was created by John Hicks (on his IS / LM curve) in 1937, but by Paul Samuelson (1948) and his textbook "Economics" Only it became popular. Please see Paul Samuelson (Economist, 2011). By this he got the 2nd Nobel Prize in Economics in 1970. However, this model became disappointing in the 1960 's.

Classical scholars like Adam Smith have closely linked behavior with microeconomics. The most noteworthy is the concept of practicality. In the era of neoclassicalism economics became regarded as science. However, many neoclassical economists, such as Vilfredo Pareto (an economist behind the 80/20 rule), emphasize the psychology behind their economic theory. Harry Marcoits' research can be applied to stock picking and is an important milestone in modern behavioral finance. When applied to economics, the study of psychology of Daniel Kahaneman and Amos Traverse key provided valuable investment in the development of modern behavioral economics.

There is a difference between classical economists and neoclassical economists about the central information on Smith's most influential research, namely the argument about the nature and cause of the country's wealth (1776). Neoclassical economists emphasize Smith 's invisible hand, his work - volume IV, the concepts mentioned in chapter 2 - a classical economist said Smith is the first to promote the nation "Fortune" plan that includes wealth and prosperity of division of labor that believes in the sentence

Karl Marx first used the term "classical economist" to describe his predecessor, including Ricardo and Adams Miss' s economic thought. However, among "classical economists", Keynes meant David Ricardo's followers, including John Stuart Mill, Alfred Marshall, Pigou. According to Keynes, the term "classical economics" refers to traditional or orthodox economic principles, but so far, well-known economists have accepted this principle. Keynes himself accepted these classical principles and taught them as followers of Marshal.