What is the neoclassical synthesis

click fraud protection

neoclassical synthesis - a combination of two theories.One of them, Keynesian, discloses the concept of "effective demand".Second, neoclassical, reflects the meaning of the distribution and production.Keynesianism is specialized in the study of the conditions of implementation, which determines the validity of an industrial level.Neoclassical direction, according to several authors, begins with factors reflecting the optimal (potential) level of production.When considering the possibility of convergence between these two theories, so the first step is considered to be a kind of "selection of concepts."

neoclassical synthesis involves the unity of the object of study of both currents of economic thought.Feature unifying theory is that the subject is a quantitative functional relationships of capitalist reproduction.Neoclassical synthesis, thus, provides a study of the current aspects of the production process from various angles.

union movements represents a kind of "budding" functional area of ​​macroeconomic research on the theory of traditional bourgeois character.In this area, another way of formation of macro-analysis could not be.Thus, the neoclassical synthesis flow is a confirmation of the division of political economy into two main areas: functional and historical concepts.The beginning of the association indicated the inadequacy of available aspects, acts as the theoretical basis of state-monopoly control of the capitalist system.

«Great neoclassical synthesis" associated the bourgeois politicians and academics with the elimination of the moments of crisis in the economy, are becoming quite acute over time.Some authors have seen the problem of combining theories in a substantial reduction of unemployment and inflation, to accelerate the growth of the economic system.As another aspect of the desire to overcome the fragmentation acted trends and tendencies of political economy, creating a unified concept.

In case if the neoclassical synthesis was ineffective, would have to admit that the mixed economic system has limited possibilities to change the pace of growth.

is extremely important to the development of deeper capital.It must be said that it does not always happen smoothly in a mixed economy.However, assuming that the employment in the country is maintained at the highest level, of the manufactured products can be withdrawn from consumption and allocated to capital formation.It uses a combination of certain events.The first step is a policy of monetary expansion.It contributes to the development and depth.Neutralization is carried out to increase the investment costs through tight fiscal policy, which provides for increased tax rates.