The Global Economy (Keynesian)

Laissez Faire

- “let it be”

Laissez Faire

Invisible hand (competition)

Adam Smith

Father of Modern Economics

Keynesian

Government Intervention that can stabilize the economy

John Maynard Keynes

founder of modern macroeconomics

1. Fiscal Policy

2. Monetary Policy

Principle of Keynes

Fiscal Policy

tax cuts and increased government spending

Monetary Policy

price stability by using tools such as interest rates, reserves, bonds, etc.

Keynesian Economics

focus on using active government policy to manage aggregate demand to address or prevent economic recessions.

Capitalism

An economic system in which private individuals or businesses own capital goods

Capitalism

·      Purest form of capitalism is free-market or laissez-faire capitalism

Socialism

a populist economic and political system based on collective, common, or public ownership of the means of production.

1. United States of America

2. United Kingdom

3. Singapore

4. Australia

5. New Zealand

COUNTRIES who practice SOCIALISM and CAPITALISM