Chicago school of economics,
Definition of Chicago school of economics:
Chicago School is a neoclassical economic school of thought that originated at the University of Chicago in the 1930s. The main tenets of the Chicago School are that free markets best allocate resources in an economy and that minimal, or even no, government intervention is best for economic prosperity. The Chicago School includes monetarist beliefs about the economy, contending that the money supply should be kept in equilibrium with the demand for money. Chicago School theory is also applied to other disciplines, including finance and law.
Chicago School is an economic school of thought, founded in the 1930s by Frank Hyneman Knight, that promoted the virtues of free-market principles to better society.
Major ideological defender of conservative economics and capitalism it has been one of the most influential bodies of economic thought in recent times. This monetarist (see monetarism) school is associated with the economics department at the University of Chicago, specially during 1970s and particularly with professor (1948-79) Milton Friedman (1912-2006) who won 1976 Nobel Prize in economics for his theory of natural rate of unemployment. His colleagues went on to win seven more Nobels, including George Stigler (1911-91) in 1982 for deregulation theory, Merton Miller (1923-) in 1990 for financial economics, Ronald Coase (1910-) in 1991 for Coases theorem, Gary Becker (1930-) in 1992 for application of microeconomics to non-market behavior, and Robert Lucas (1937-) in 1995 for the theory of rational expectations. Its basic tenets are that (1) markets allocate resources more efficiently than any government, (2) monopolies are created by governments attempt to regulate an economy (3) governments should avoid trying to manage aggregate demand and, instead, (4) should focus on maintaining a steady and low rate of growth of money supply. It relies to an extraordinary extent on mathematical models through which, its critics charge, it can prove anything it wants to. Also, some of its assertions end us as absurdities such as criminal activity is a career choice, and that smoking is an example of making an informed choice (between cancer risk and immediate gratification).
How to use Chicago school of economics in a sentence?
- Chicago School is an economic school of thought, founded in the 1930s by Frank Hyneman Knight, that promoted the virtues of free-market principles to better society.
- The Chicago School's most prominent alumnus was Nobel Laureate Milton Friedman, whose theories were drastically different from Keynesian economics.
- The Chicago School includes monetarist beliefs about the economy, contending that the money supply should be kept in equilibrium with the demand for money.
Meaning of Chicago school of economics & Chicago school of economics Definition