Economic schools of thought
From Wikipedia, the free encyclopedia
A variety of approaches and schools of thought have existed within economics. In some periods two or more schools have contended for dominance. For example, in the early 20th century institutional economics and classical economics were both highly influential in the United States.
Currently, the great majority of economists follow an approach referred to by its adherents as "mainstream economics" or simply "economics" and by critics by terms such as "orthodox economics". Within the mainstream, there are competing views on various topics, particularly within macroeconomics, but no distinct schools of thought with well-defined membership.
A number heterodox schools also exist. These schools each comprise a small proportion of the academic economics profession but some have a substantial presence in particular departments. For example, Austrian economists, and other libertarians, dominate George Mason University.
In addition to schools within economics, explicit or implicit views on economic topics are naturally present in other social science disciplines, most notably political science and sociology. Conversely, economic analysis is increasingly being applied in these disciplines.
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[edit] Historically important schools
Historically important schools include mercantilism, kameralism, physiocracy, the Manchester school, the German Historical school of economics and classical economics.
[edit] Current heterodox schools
In the late 19th century, a number of heterodox schools contended with the neoclassical school that arose following the marginal revolution. Most survive to the present day as self-consciously dissident schools, but with greatly diminished size and influence relative to mainstream economics. The most significant are Institutional economics, Marxian economics and the Austrian School.
The development of Keynesian economics was a substantial challenge to the dominant neoclassical school of economics. Keynesian views eventually entered the mainstream as a result of the Keynesian-neoclassical synthesis developed by John Hicks. The rise of Keynesianism, and its incorporation into mainstream economics, reduced the appeal of heterodox schools. However, advocates of a more fundamental critique of orthodox economics formed a school of Post-Keynesian economics.
More recent heterodox developments include evolutionary economics (though this term is also used to describe institutional economics), feminist, Green economics, econo-physics and Post-autistic economics.
Most heterodox views are politically left-wing and critical of capitalism. The most notable exception is Austrian economics, which is politically aligned with libertarianism. Some proponents of Evolutionary economics share this viewpoint.
[edit] Viewpoints within mainstream economics
Mainstream economics encompasses a wide (but not unbounded) range of views. Politically, most mainstream economists hold views ranging from libertarian to social democratic. There are also divergent views on particular issues within economics, such as the effectiveness and desirability of Keynesian macroeconomic policy. Although few mainstream economists regard themselves as members of a "school", many would identify with one or other of neoclassical economics, monetarism, Keynesian economics, new classical economics and behavioral economics.
[edit] Viewpoints outside economics
Other viewpoints on economic issues from outside economics include dependency theory and world systems theory
