Buca Vadim 2EM2

Historical theories

Mercantilism Classical theory Keynes`s theory

Antoine de Montchrestien 1576-1621

Adam Smith 1723-1790

John Maynard Keynes 1883-1946

The role of government in economy

3%

35% 29%

33%

Active role, but is the Government really effective? Active role regulating

Government is the problem DK/Refuse

1) Provide a Legal System to make and enforce laws and to protect private property rights. 2) Provide Public Goods that individuals or private businesses would not provide. 3) Correct Market Failures such as external costs and economic slowdown (unemployment).

4) Maintain Competition by regulating monopolies. 5) Redistribute Income by taxing those with larger incomes and helping those in need. 6) Stabilize the Economy by reducing unemployment and inflation, and promoting economic growth.

 Discipline Honesty and Trustworthiness Tolerance Cooperation Courtesy Enterprise Responsibility