|
英国留学生经济论文写作指引：Guidance Notes for Economics CW3
核心提示：留学生经济论文写作指引：Guidance Notes for Economics CW3
The ideas of John Keynes (1936) are extremely relevant to the current macroeconomic situation in the UK. Discuss. (1,500 words)
• What is the current macroeconomic situation in the UK? Data is available on Learnzone and through this link. You should describe the trends in the main macroeconomic variables, especially over the last five years. This must include charts.
• What were the key ideas of Economics paper John Keynes and how do they differ from those of classical/neoclassical/monetarist/traditional/orthodox economists?
• What is it about recent economic events that have made Keynes more relevant?
• What is the relevance of Keynesian ideas for macroeconomic policy (fiscal and monetary)? To what extent have these been implemented?
• What criticisms do non-Keynesian economists make of these policies?
• A high standard of referencing is required for a distinction
Debates in Macroeconomics
Keynesians and Monetarists
Macroeconomics has been a controversial topic area for many years. Economists have tended to divide into two main groups or ‘schools’.
Monetarists (also known as classical, neoclassical or traditional
economists); andKeynesians
John Keynes (1883-1946)
An English economist at the University of Cambridge.
His most famous work was ‘The General Theory of Employment, Interest and Money’ (1936)
Milton Friedman (1912-2006)
An American economist at the University of Chicago, and the most famous monetarist. His most famous work was ‘A Monetary History of the United States’ (1963)
The most important differences between the two schools has been their views regarding:
The source of economic shocks; [sudden changes in demand or supply]
the speed with which the economy, and the labour market in particular, is capable of adjusting to shocks.
Monetarists
Firstly, argue that shocks are ‘exogenous’ (originate outside the market economy)
Secondly, argue that free market economies will quickly adjust – only excessive government interference prevents them from doing so.
Keynesians on the other hand argue that:
Shocks can be endogenous [originate inside the market system, especially from financial markets]; and
modern economies are inevitably inflexible; there are institutional and psychological factors that prevent markets
adjusting quickly to shocks.
Policy Implications
Monetarists argue that on the supply-side, governments should follow laissez-faire policies; only ensuring that markets are as competitive as possible. The only good government is small government.
On the demand-side, they argue against the use of active fiscal or monetary policies. They prescribe balanced budgets and a slow but steady growth of the money supply
Keynesians believe that there is a need for much more government intervention and regulation; on the supply-side to correct market failures e.g. the provision of public goods and merit goods, and a strict regulation of the financial system.
On the demand-side they believe that active fiscal and monetary policies are necessary to encourage rapid recovery from economic shocks.
Policy in Practice
UK policy has evolved over recent decades. In summary:
Keynesian theory dominated before 1979
Monetarism
|
