Great economist concept map

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macroeconomics

charlotte deeganにより

Macroeconomics 1BB3 - Chapter 12

Remek Debskiにより

How colonial rule impacted the change in the social structure of India. Was the new structure a reason for Indian nationalism

nis recにより

how does nature/nurture affect human growth or Why did the great depression take so long to end?

carolyne obrienにより

Friedrich Hayek

Main topic

Cause and Effect

Hayek writes Road to Serfdom.

recession of 1970's

monetary policy(Hayeks ideas) is now the main government economic policy in the west

leads to great deregulation of nationalized government industries

Uninetnded Consequences

deregulation leads to huge gap in income inequality

companies use free trade and deregulation to outsource.

Investment banks over extended begin to falter and go Bankrupt.

leads to greatest recession since the great depression.

return to a more balanced government approach in the markets

loss of manufacturing jobs in the West

huge profits

intended Consequences

recession ends western economies start to boom

greater growth leads to more blief in Hayek's theories and more prosperity into the 90's and 2000's and less government regulation

economies hit record highs in GDP and the stock market in the mid 2000's

lowest regulation of the financial sector since the 1929 stock market crash. Record Highs for GDP and stocks continue

Keynes raised to Economic Sainthood

Hayek ostracized for having opposite view to Keynes, no government intervention. Let free markets rule.

Hayek goes to teach University of Chicago, continues to teach his theories

ignored by governments

Mentors and influences Milton Friedman

Life and times

politically

Stagflation (1970's)

inflation and unemployment both rise. Not possible accoriding to Keynesians. Western Economies in recession

Thatcher and Regan elected in U.K. and U.S. first time Hayeks policies are widely used. Western economies recover

Hayeks ideas take hold and are the predominant theory, now touted by Friedman, in governments making policy unitl the 2008 recession

Hayek's ideas on deregulation and no government intervention lead to banks and ivetment firms taking more and more risks and leads to 2008 recession. Keynesian ideas are tried to ease the great recession

Economically

Great Depression

people suffer greatly with the boom and bust cycles of the free market

WWII

governments spend to arm and unemployment drops drammactically

Post WWII

Western Economies boom for 30 years. Keynes ideas credited for the success

socially

Post WWI

Hayek sees hyper inflations impact in Germany and believes the economy can only be fixed by letting the free market take its course

Keynes

Contemporary of Hayeck,Believes the market unchecked will produce more depressions. Governments should more actively plan and manipulate the free market

Economic Significance

Economic Perspective

Subtopic