Classical and Neoclassical Economists: Adam Smith and John Maynard Keynes

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In order to understand how economics really work in today’s age we must think about how those economic ideas, revolutionary theories of many economists, that helped to shape the economic structure as we know it now, through many individuals and school of economic though that has existed through the ages. These schools are “the mercantilists, the physiocrats, the classical economists, Marxian economics, the neoclassical economists and the monetarist economics. For this essay I will only refer to the classical economists and the neoclassical economists. The two most influential economists that helped to shape our economy with their thoughts and theories that are still used in modern economy are Adam Smith a classical economist and John Maynard Keynes a neoclassical economist. These two economists are the most famous economists of all times. Even though that its known that their thoughts are opposites to one and other they also share some similarities for example as suggested by (Stephen Yearwood. (2013)) “Both understood that the key to economic prosperity is to keep the money circulating.” They both According to (Greydark (2009)) Demonstrated “that the field of economics is vast, flexible, and able to be interpreted in many ways.” Each influenced the growth of economic thought and birth of modern market based societies. According to (best brielle. (2010)) “Each economist has similar ideas yet different opinions that distinguish them as economic leaders”. Adam Smith, is known as the Father of economics, Capitalism and advocate of free market also known as laissez-faire. His theory of invisible hand of free enterprise and his 1776 Wealth of Nations is what he is most admired for, also the canons of taxation, labour theory of value, ... ... middle of paper ... Compared and Contrasted Ideas. Available: Last accessed 18/01/2014. 4. Tom Gorman. (2003). Three Economists and Their Theories. Available: Last accessed 19/01/2014. 5. Yousuf Dhamee. (2005). Adam Smith and the Division of Labor. Available: Last accessed 19/01/2014. 6. Steven Sanders. (2011). "Value in Use" versus "Value in Exchange". Available: Last accessed 19/01/2014. 7. Daniel A. Yergin and Joseph Stanislaw. (1998). Keynesian Economic Theory 1. Available: Last accessed 20/01/2014.

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