Grupo 7

Economic
theories
Course : English II
Teacher : Tatiana María Perez Mendoza
Members:
-Grandez Santillan Balya Nicole
-Valenzuela Tirado Miguel Mauricio
-Rojas Guzman Kedyn Eduardo
-Lopez Vilchez Fátima del Rosario
Introduction
Economic schools represent the various
schools of thought that have shaped
economic theory throughout history. These
schools reflect different perspectives on how
to understand and address economic
challenges, from resource allocation to
macroeconomic stability. Each of these
schools of thought has left its mark on the
understanding of economic phenomena
and the formulation of public policy, shaping
the evolution of the discipline.
Critics Representatives
Mercantilist
school Jean Baptiste Colbert
-Colony exploitation
-Favored powers
Thomas Mun

ACCUMULATION STATE FAVORABLE COLONIALISM

OF WEALTH.. INTERVENTIONIS TRADE
M IN THE BALANCE.
ECONOMY
 Physiocratic
school
The physiocrats base their theory on the
existence of a natural law that governs
markets, the non-intervention of the State
and the importance of agriculture as the
core of productive economic activities.

Main characteristics
Natural order

Importance of land and agriculture

Non-intervention of the State

François Quesnay
 Classical economics is a school of economic
thought that is based on the idea that the free
Classical
market is the natural way the economy works and
that it produces progress and prosperity. economics
ORIGIN
BASIC PRINCIPLES
Adam Smith "An Inquiry into
1776 the Nature and Causes of the Free market
Wealth of Nations."
The government does not
LATER DEVELOPMENT.... intervene

Prices adjust naturally

ECONOMISTS OF CLASSICAL ECONOMICS
Labor market at full employment
Adam Smith Thomas Malthus David Ricardo
Monetary policy and fiscal policy
are ineffective
Marxist The main argument on which Marxism is
based is that capitalism is an economic
system whose structure is erroneous.

economics And, therefore, it must be replaced by

another that will abolish the system of
bourgeois property and the free market
of goods and services

KEY PROBLEM OF Its creators

CAPITALISM
Generates the exploitation
Karl Marx Friedrich Engels. They propose abolishing
of workers. bourgeois property and the
free market

Therefore, Marx relies, State-owned means of

among other things, on his
production
well-known rate of surplus
value to base his theory.
It is the theory that proposes
the implementation of
communism.

The value of work is measured by

Society must be equal. Abolish private property
hours of production
Neoclassical
economics
Neoliberalism is a current of
economic and political thought
that emerged in the 20th century. It
is based on the defense of a
capitalist system. It tries to revive
the ideas of classical liberalism.

Free market
Deregulation
Privatization
Reduction of public spending
Emphasis on macroeconomic stability
Globalization
Monetarist Quantitative theory of money

economics
The monetarist school is a school of
economic thought that focuses on the
central role of the money supply in the
economy and in economic policy
formulation stability.

Main characteristics
Quantitative theory of money
Neutrality of money
Friedman's rule
Criticism of active intervention
Emphasis on money supply rather
than demand
Milton Friedman
 KEYNESIAN
SCHOOL
Is a macroeconomic theory of total spending in the economy
and its effects on output, employment, and inflation.

Characteristics:
It was developed by
Using active government policy British economist John
to manage aggregate demand Maynard Keynes during
Activist fiscal and monetary the 1930s in an attempt
policy to manage the economy to understand the Great
and fight unemployment. Depression.
 What was the Great
Depression?
The greatest and longest economic
recession in modern world history.
The Great Depression ran between
1929 and 1941. This period was
accentuated by a number of
economic contractions, including the
stock market crash of 1929
and banking panics that
occurred in 1930 and 1931.
 NEOLIBERALISM
Is a policy model that encompasses both politics and
economics. It favors private enterprise and seeks to transfer
the control of economic factors from the government to the
private sector.
It is often associated
with the leadership of Characteristics:
Margaret Thatcher, the Efficient functioning of free
prime minister of the market capitalism
U.K. and Ronald Focus on limiting government
Reagan, the 40th spending, government regulation,
president of the U.S. and public ownership.
Thank you
very much!