POLS 3255 Lecture Notes - Lecture 7: International Political Economy, Classical Economics, Girlfriend

• School: York University
• Department: Political Science
• Course: POLS 3255
• Professor: Paul Brienza

Document Summary

This chapter focuses mainly on the theory the general theory of employment, interest and money also called the general theory . This theory was made to help an economy get back on its feet from a recession. He put together a theory that he believes is exceptional and different from every other economist"s thoughts. Keynes believed that capitalism was the best of all systems and that competitive markets in capitalism were uniquely designed to minimize the effect of human competition. He also believed that government intervention in capitalism was necessary because he believed without it, there would be economic and political chaos. Economists in the classical school believed that overproduction was impossible except in the very short run. Economists believed that when some firms or even the entire industry produced to many goods, an automatic adjustment would occur that would put the economy back on track. Classical economists did not question that capitalism was the best of all economic systems.