A new book critiques economics education, citing it as "sterile and lifeless" due to a focus on mathematical formulas over intellectual debates. The book traces economic thought from Ancient Greece to Behavioural Economics, exploring various schools like Classical, Austrian, Chicago, and Keynesian. It emphasizes that these schools offer divergent views on economic functioning and government intervention. It highlights the predictions of Austrian economists about central planning failures and critiques the flaws in Keynesian policies demonstrated by Public Choice School economists.
The mathematical, model-based approach that dominates university economics courses crowds out many other things and has created a generation of graduates who know formulas but understand little about the intellectual battles that created modern economic policy.
Different schools of thought, including the Classical School, Austrian School, Chicago School, and Keynesian approaches, offer radically different explanations for how economies work and what governments should do about economic problems.
Austrian School economists like Ludwig von Mises and Friedrich Hayek warned as early as 1920 that central planning would fail because governments lack the price signals needed to allocate resources efficiently.
The Chicago School's Milton Friedman used extensive empirical data to show that the Great Depression was caused not by market failures, as Keynesian economics suggested.
#economics-education #economic-theories #schools-of-thought #mathematical-models #policy-implications
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