1. John Maynard Keynes vs. Friedrich Von Hayek
20th Century Economic Theorists

2. Keynesian Theory of Economics
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Inflation can occur because of too much demand for goods and services
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Fiscal policy (changes in government spending and taxes) is more powerful than monetary policy (changes in the money supply and interest rates)

3. New Classical Theory (Hayek Theory)
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Consumers, business leaders, and investors are intelligent decision makers and take the effects of government policies into account in deciding on their behavior
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Many theorists emphasize the role of forward looking expectations in affecting economic growth, inflation, and unemployment