Economics – Schools of Thought

Some of the general population know that economics is “a social science concerned chiefly with description and analysis of the production, distribution, and consumption of goods and services” (1). A smaller subset know that economics can be broken into microeconomics and macroeconomics. To oversimplify between the two, microeconomics deals with individual agents and their interactions whereas macroeconomics deals with aggregates in the economy (as a whole).

In other words, macroeconomics refers to the ‘big picture’ study of economics, so looking at concepts like industry, country, or global economic factors. Macroeconomics includes looking at concepts like a nation’s Gross Domestic Product (GDP), unemployment rates, growth rate, and how all these concepts interact with each other (2).

What most people don’t know is that there are actually different schools of economic thought and the key differences between them. The goal of this article is to at a high-level describe the key differences. To this end, I found this table provided by Business Insider:


Click on the table for a larger version.





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