- Subject index
Interest in economics is at an all-time high. Among the challenges facing the nation is an economy with rapidly rising unemployment, failures of major businesses and industries, and continued dependence on oil with its wildly fluctuating price. Economists have dealt with such questions for generations, but they have taken on new meaning and significance.Tackling these questions and encompassing analysis of traditional economic theory and topics as well as those that economists have only more recently addressed, 21st Century Economics: A Reference Handbook is a must-have reference resource.Key FeaturesProvides highly readable summaries of theory and models in key areas of micro and macroeconomics, helpful for students trying to get a "big picture" sense of the fieldIncludes introductions to relevant theory as well as empirical evidence, useful ...
Chapter 38: Debates in Macroeconomic Policy
Debates in Macroeconomic Policy
Modern economics began with Adam Smith's The Wealth of Nations (1776), which established the promotion of rising living standards as the major economic goal. Smith labeled economic thought of his time as Mercantilism, which seemed to place emphasis on the acquisition of money, gold and silver primarily, as the key to prosperity.
The Wealth of Nations integrated eighteenth-century political and economic thinking to present a new framework for economic organization to promote economic well-being. Smith demonstrated that the then prevailing emphasis of government accumulation of specie—gold and silver—was misplaced. For Smith and the following classical school, the correct view of economic progress had nothing to do with money.
Just as in modern views of economic growth, rising living standards depended ...