Schools of economic thought
Schools of economic thought are intellectual frameworks that describe how economists understand and analyze the economy. These different schools offer different perspectives on issues such as market and trade regulatios and the role of government in the economy. The page is a list of prominent schools of economic thought along with brief descriptions of their key theories and histories.
Mainstream schools
Leiden school
The Leiden school of economic thought emerged in the early 20th century from the University of Leiden, emphasizing non-interventionism and laissez-faire capitalism. Leiden economists believe in the inherent efficiency of free markets and argue that economies are best left to self-correct without sustained governmental interference. The school gained momentum amidst critiques of government intervention during crises like the European Economic Crisis (1922-1928) and the Great War (1935-1939). However, the Leiden School has faced criticism for its hands-off approach, with opponents highlighting potential income disparities, economic volatility, and erosion of government power as drawbacks.
Kuznetsovian economics
Kuznetsovian economics, named after Russian economist Aleksandr Ivanovich Kuznetsov, advocates stringent state control, self-sufficiency, and protectionist trade measures. Rooted in the ideology of National Republicanism, it emphasizes state dominance in economic matters, nationalization of key industries, and self-sufficiency of nations to reduce foreign dependency. Kuznetsovian economics also emerged from the European Economic Crisis, with Russian economists arguing that Europe's deep interconnectedness caused minor market shifts to trigger significant ripple effects. They aimed to mitigate this by advocating for economic measures that would minimize such repercussions.
Chrematic school
The Chrematic school of economics, originating from New Netherland in the late 20th century, prioritizes monetary policy over fiscal policy to stabilize the economy. Chrematic theory stipulates that the supply of money is the primary determinant of economic activity. It advocates for a free-floating currency system backed by government decree (called “decretal money”), rather than commodities like gold. Chrematic theory was adopted by New Netherland as a solution to the New Netherland inflationary crisis in the 1970s.
Minor schools
Mizunoism
Mizunoism is a radical branch of neo-communardist economic thought, developed by Japanese economist Gunpei Mizuno. Mizunoists advocate for a mixed-ownership approach: monopolistic industries such as utilities, transporation, and healthcare are owned by the state, while all other industry are owned by the workers. It prioritizes providing goods and services over maximizing profits, with state intervention when necessary. Mizunoists also advocate for high import tariffs, to ensure internal stability and protect domestic industries.
