Economic theory is one of the most importantdisciplines of the economy. In its framework, philosophical and theoretical postulates are set, and a comprehensive study of the market takes place. In the narrow sense, the concept of economic theory implies a set of principles that help to choose the most effective ways to satisfy unlimited needs with the help of limited resources. In other words, it is global management, which includes many schools and currents.
Science takes its origins in the third century before ourera in a number of countries in the Ancient East. An ancient monument of economic thought can be considered the "Laws of Manu" of ancient India. A strong impulse in the development gave Plato and Aristotle. Divided and supplemented the learned idea of ancient Greek philosophers in ancient Rome.
One of the main methods of science isgraphic modeling, that is, economic theories carry in themselves various models that seek to explain a particular process. A large role is given to forecasting, the ability to predict the course of global economic processes often determines the validity of a particular exercise.
Also, economic theories are actively used to develop practical recommendations for:
- reducing inflation;
- GDP growth;
- optimization of costs;
- development of individual industries.
This science is dynamic, within its framework constantlynew economic theories appear and old ones are added. This inevitable process is associated with regular changes in the market. To trace and analyze such changes through the historical prism is called the history of economic doctrines.
In a global sense, all economic theories set themselves the task of most accurately transferring the real economy, explaining changes and deviations.
Modern economic theories:
- Neo-Keynesianism is the teaching of the macroeconomic school, based on the work of John Keynes.
- Monetarism is a macroeconomic doctrine that considers the amount of money in circulation to be the cornerstone of the economy. Put the beginning of the theory of Nobel laureate Milton Friedman.
- A new institutional theory is a doctrine that analyzes social institutions through the prism of economic theory. They are often confused with institutionalism, but there is no direct connection between these teachings.
- The Austrian school (it is Vienna,Psychological) - a direction defending the principles of economic liberalism: freedom of transaction conditions, minimizing state intervention in the economy. According to the approach of the Vienna School, the economy is extremely difficult to analyze by the object (the question of the possibility of real forecasting is posed) because of the set of determining factors and the complex nature of the economic behavior of a person.
- New political economy is one of the mostresearched exercises in the framework of modern economic theory, analyzing the behavioral mechanisms of politicians, officials, the media and the electorate through the prism of the market and the economy. Within its framework, there is a rejection of the concept of an “ideal state”, which is designed to take care of citizens. This theory implies that the contradictions between the participants in this process are the cause of corruption.
