Extra Credit Paper: Macroeconomic Schools of Thought
Background: We learn many different theories of how the economy works and we study these through models from the different schools of thought. For this assignment, you will be researching any one macroeconomic school of thought from the list below and you will write a paper explaining the models and theories of that school, as well as your own conclusion and viewpoint. You can choose from the following schools of thought:
- New Keynesian View (deviated away from Keynes) (Krugman, Delong, Mankiw, Blanchard)
- Must Include: Coordination Failures View (Cooper)
- Classical View (Smith, Ricardo, Stuart-Mill)
- Neoclassical View (Muth, Prescott, Lucas) (Can also include Chicago School Ideas)
- Must Include: Rational Expectations Theory, Real-Business-Cycle View (Nelson, Plosser)
- Monetarist View (Friedman)
- Austrian Economics View (Mises, Hayek, Menger, Rothbard)
- Marxian Economics (Karl Marx, Frederick Engels)
You will need to thoroughly research your topic and you may use your book, website sources, or other journals, but be sure to cite them (you may choose any format- MLA, APA, Chicago Style- just stick to one). The information you have in your paper needs to be succinct but complete. The following questions should be answered in your essay:[unique_solution]
- What are the main ideas of this school of thought? Explain the models and theories of this school of thought. (15 points)
- How did it originate? Who are its founders and perpetuators? (5 points)
- How is government policy viewed? What, in the opinion of the school, is the result of policy? (10 points)
- What are the key assumptions (in self correction, economic stability, growth, wage flexibility, the aggregate supply line, etc.)? (15 points)
- How logical are the models and theories? How realistic are they? (10 points)
- How compatible is it with Traditional Keynesian models? (10 points)
- Do you agree or disagree with their view of government policy and their logic? Why or why not? (10 points)
You need to cite any sources you use. Make sure that you are not plagiarizing. You need to include graphs to supplement your explanation of the models and theories. Your essay must be at least three pages but must not exceed six pages (double spaced). Take your time researching and understanding the material, as that will be reflected in your explanations and thus your grade.
If you choose to complete this, be sure to submit it on or before the due date. No exceptions will be made.
Essay Rubric
Name: _______________________________________
School of Thought:______________________________
| Category | Allocated Points | Received Points |
| Thoroughly researched material, which is cited properly. There is evidence of sufficient effort spent to research, understand, and explain the ideas. | 20 | |
| Essay answers all the questions and information that are outlined in the assignment sheet in a detailed, knowledgeable and complete manner. Graphs and explanations are accurate, explained, and justified. | 75 | |
| Essay follows a specific format and has coherence. The essay has proper organizational strategies, grammar, spelling, and is well-written. Essay follows the directions and guidelines given on the assignment sheet | 5 | |
| Total | 100 | |
| Additional Comments: | ||