THE BASIC THEORIES OF ECONOMICS You should be at least casually aware of them. I

THE BASIC THEORIES OF ECONOMICS

You should be at least casually aware of them.

I recommend just reading Investopedia from front to back (it’s what I did to make sure I could translate all the terms into propertarian language)

-Schools of Thought-

Classical

Marxism

Keynesian (positive)

Neoclassical synthesis

Austrian School

-Economic Systems-

Free market capitalism

Market socialism

Central planning

Mercantilism

Shock therapy

Washington consensus

-Economic Cycles-

Keynesian (normative)

Monetarism

The Phillips curve

Permanent income hypothesis

Rational expectations

Time consistency

Financial accelerator

Financial instability hypothesis

Lender of last resort

-Growth-

Neoclassical growth

New growth theory

Creative destruction

Human capital

The rule of law

Limits to growth

-Global Trade-

Comparative advantage

Heckscher-Ohlin trade model

New trade theory

Optimal currency area

The impossible trinity

Purchasing power parity

-Choice-

Rational choice

Game theory

Public choice

Expected utility theory

Prospect theory

-Tax & Spend Policies-

Tax incidence

Excess burden

Supply-side economics

Crowding out

-Markets-

The invisible hand

Marginalism

The tragedy of the commons

Property rights

Polluter pays principle

Adverse selection

Moral hazard

Efficient market hypothesis

Rent seeking

-MORE Theories To Get You Started-

Supply and Demand (Invisible Hand)

Neo-Malthusian (Resource Scarcity)

Solow Model (growth comes from capital, labor, and technology)

New Growth Theory (Romer & endogenous growth)

Institutions and Growth (rule of law, property rights, etc.)

Efficient Markets Hypothesis

Permanent Income / Life Cycle Hypothesis

Something Behavioral (e.g., Prospect Theory)

Adverse Selection and the Lemons Problem

Moral Hazard

Tragedy of the Commons

Property Rights as a solution to the Tragedy of the Commons

Game Theory (e.g., Prisoner’s Dilemma)

Comparative Advantage

New Trade Theory

The Trilemma (exchange rates, capital flows, and monetary policy)

-EVEN More Theories-

Washington Consensus

Financial Accelerator

Theory of Independent Central Banks

Bagehot Theory of Central Bank Lending

Creative Destruction (Schumpeter)

Ricardian Equivalence

Dynamic Consistency

Diversification and Investment Portfolio Design

Capital Asset Pricing Model

Option Valuation (Black-Scholes et al.)

Austrian Economics

Speculative Bubbles (e.g., Minsky)

Liquidationist View of Downturns

Time Value of Money (incredibly important but very old)

Public Choice / Economic Theory of Regulation (politicians and government workers as self-interested maximizers)

Arrow’s Impossibility Theorem

Welfare Theorems

Veblen and Conspicuous Consumption

Polluter Pays Principle (e.g., Piouvian Taxes)

Offsetting Behavior (e.g., people drive safe cars more aggressively)

Heckscher-Ohlin Trade Theory

Optimal currency areas

Exchange Rates and Purchasing Power Parity

Mercantilism

Rubinomics

Supply-side Economics

Laffer Curve

Phillips Curve

Theories of Economic Geography

Fisher Theory of Interest Rates

Liquidity Traps

Resource Curse (Dutch Disease)

Exchange Rate Overshooting (Dornbusch)

Auctions

Mechanism Design

Principal-Agent Theory (e.g., separation of management and ownership)

Theory of Optimal Taxation (e.g., broad base, low rate, tax less-elastic activities)