With the advent of the work of the "General Theory of money, employment and the percentage of" Keynes many questions of our time, would seem to have been resolved.In labor were identified causes of economic crises, macroeconomic instability, received study methods of maintaining economic development, monetary policy and the necessary investment organization.At the same time in the political sector Keynesianism has become a kind of "bridge", and firmly binds the socialist market economy under the form of a simple principle of the "state share" in the regulatory process.Thus, Keynes's ideas fit perfectly into the concept of the gradual convergence of the socialist and market systems.
However, these approaches have not found support and understanding from the orthodox adherents of the free market, contributing to the restoration of social justice and economic equilibrium.Active criticism of Keynesianism came from the followers of the early classics such as Smith, Malthus and others, and later by their successors in the 19-20 centuries (Pigou, Marshall, Menger).This worked out the updated concept of critique.Thus began to form neoclassical economic theory.
most common and reasonable today is the doctrine of monetarism.The second place in importance is the doctrine of supply-side economics.It is also considered one of the areas of teaching.
neoclassical school of economics, which is considered to be a recognized leader Friedman, promotes the principles of liberalism and free markets.In his writings, Professor harshly criticized totalitarianism and the restriction of human rights.
neoclassical school of monetarism was formed after a rather long study of Friedman monetary policy of America.The professor concluded that the only money matter.Money, in his opinion - is the quintessence of the economy.This led to the name of the doctrine - monetarism.This neoclassical school to develop the idea, which was based on quantitative monetary concept Fisher.Friedman attached great importance to regulate the quantity of money in circulation.He believed that the way to bring about change in the behavior of economic agents.
Friedman, complicating the concept of Fisher that when you change the quantity of money in circulation and prices will vary, withdrew its equation.In the basic concept it is adding additional components.In particular, his equations contain additional variables such as bond interest rate, the rate of change of the price level, the income on shares and some other parameters.Thus, the neoclassical school of monetarism support their position that had significant differences from Keynesian interpretations.
Friedman believed that the main reason for the nominal (cash) income advocates a change in the circulation of money.At the same relationship that exists between the first and the second appears with a time delay (lag).
Thus, while reducing the amount of money the production volume is reduced after six to twelve months.Then, after the occurrence of the gap between actual and potential production volumes of a decrease in the price level, as a rule, after six or twelve months.
As a result, lag size - about 1-2 years.A similar delay occurs between the change in the quantity of money and bank interest indicator.Raising the first thus reduces the initial rate of the second, which is associated with the desire of owners of "extra" to get rid of their finances (finance).As a result, it starts buying bonds for a fixed amount of which is marked increase in their prices, while lowering the percentage of the bank.
certain part of the "extra" will be used to finance purchases of consumer and capital goods, other types of securities.All this has a stimulating effect on the increase in business activity.This is the basic concept that promotes the neoclassical school of monetarism.
