1. ECONOMIC THEORIES Andrew Simler

2. Mercantilism Mineral resources are wealth Zero-sum game Balance of trade  Exports are good, imports are bad  Tariffs

3. Classical Economics Value derived from labor Laissez-faire  Free trade  Competition “Invisible Hand”  Self-interest

4. Marxist Economics Value derived solely from labor (cf. Classical)  Labor itself also valued on this basis  Labor creates surplus value Inevitable fall in profits  Increased use of machinery  Exploitation of workers Eventual revolution by oppressed working class

5. Neoclassical Economics Value derived from subjective scarcity Mathematical modeling  Marginalism Three assumptions  Rational behavior  Maximum utility  Full information

6. Keynesian Economics Markets are not perfectly efficient  Recessions and depressions  Government intervention Supply can exceed demand  Downward spiral in price Liquidity trap

7. Monetarism Reaction against Keynesian thought Money supply is key  Great Depression was fault of Federal Reserve  Money supply should grow steadily to match growth of economy The market will then sort out all economic problems Natural level of unemployment

8. Dependency Theory Persistent poverty in underdeveloped countries  Pattern of international interactions Dominant industrialized powers, poor dependent states  Echoes of imperial/colonial relationship Self-reinforcing  Supported by elites of dependent states Consequence of capitalism or power imbalance

9. References http://www.investopedia.com/terms/m/mercantilism.asp https://web.archive.org/web/20110723183642/http://www.newschool.edu/nssr/het/profiles/colbert.htm http://www.britannica.com/EBchecked/topic/120200/classical-economics https://web.archive.org/web/20110723182041/http://www.newschool.edu/nssr/het/profiles/ricardo.htm http://www.economics.utoronto.ca/munro5/MARXECON.htm https://web.archive.org/web/20110629230810/http://www.newschool.edu/nssr/het/ http://www.econlib.org/library/Enc1/NeoclassicalEconomics.html https://web.archive.org/web/20110723173747/http://www.newschool.edu/nssr/het/essays/margrev/ncintro.htm http://www.nytimes.com/2009/09/06/magazine/06Economic-t.html https://web.archive.org/web/20111029053933/http://www.newschool.edu/nssr/het/profiles/keynes.htm http://www.economist.com/economics-a-to-z/m#node-21529789 https://web.archive.org/web/20110421033625/http://www.newschool.edu/nssr/het/profiles/friedman.htm https://web.archive.org/web/20111031071832/http://www.newschool.edu/nssr/het/essays/monetarism/mpolicy.htm https://www.mtholyoke.edu/acad/intrel/depend.htm https://web.archive.org/web/20110723182316/http://www.newschool.edu/nssr/het/profiles/prebisch.htm