consuming rare economic goods and services in the world of limited resources, as
economics, as well as ways of making the most efficient use of these resources.
Principles of marginal utility served as the basis for developing a concept of boundary
values. The neoclassical theory that gives an analysis of economic phenomena in terms
of the behavior of individual economic entities and uses the concept of marginal values
was called marginalism.
The depression of 1929-1933 proved incapacity, only through free competition,
to solve socio-economic problems of society. Government interference of the state to
the course of economic life became actual, there was a need for a theoretical
understanding of this process.
The new direction was called Keynesianism by the name of the world-famous
English economist John Maynard Keynes, whose main work was "The General Theory
of Employment, Interest and Money" (1936). It outlines the fundamentals of his theory
and the program of state regulation of the economy. Neo-classics for the analysis of
economic processes used the microeconomic approach, which was based on the
consideration of the activities of a separate firm, the effective functioning of which was
identified with the economic well-being of society, incl. the impossibility of mass
unemployment. Unlike them, D. Keynes has developed a macroeconomic approach,
and compared with F. Quesnay and K. Marx for new conditions - the highest stage of
the capitalist mode of production. According to his (D. Keynes) macroeconomic
concept, the market mechanism is not able to ensure the socio-economic stability of
society, eliminate the crisis and unemployment. Without active state intervention in the
economy, capitalism in general cannot continue to exist. Therefore, D. Keynes was
declared a savior of capitalism, and his theory of the Keynesian revolution in political
economy. He substantiated the need for state regulation to ensure a general economic
equilibrium between aggregate demand and aggregate supply, full employment
through financial and credit levers, in particular, increasing public investment,
lowering the interest rate during the crisis, limiting wages, active inflation and cyclical
tax policies. This doctrine was the basis of the economic policy of US President F.
Roosevelt, aimed at overcoming the "great depression" of 1929-1933. D. Keynes is
generally regarded as the economist number one in the twentieth century. D. Keynes
substantiated the necessity, forms and methods of state regulation of the economy, thus
created the theory of a mixed economy.
In 1970-1980 when exaggerated state interference in the economy began to slow
down the development of production, the neo-classical doctrine was again re-emerging.
It is represented by the theories of monetarism and neo-liberalism.
Monetarists, on the basis of the fact that there is a certain link between the
indicators of economic development and the amount of money in the run, prove that it
is possible to influence on a course of economic processes and change the size of the
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