Preview

commanding heights

Good Essays
Open Document
Open Document
1119 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
commanding heights
NAME ; HAMZA
SURNAME ; OMAR
201233154
TUTORIAL 1
31 JULY 2014

As the world progresses and moves forward into a global economy, countries needed to adept to the requirements of this modern era and develop their economic systems in order to survive in this new age . This all dated back to, two very influential figures with rival views and their schools of taught which had a huge impact on western economic theory in the 20th century. I will touch on the impact of these certain economic systems and the effect it had on major countries and how the rest of the world was about to change.

Battle of ideas
Friedrich Hayek and John Maynard Keynes were economist with rival views and their schools of taught had a massive impact on western economic theory in the 20th century
Hayek believed in a free market economy. This is a type of economy that is known as capitalism in which individuals own all property and organisations and they compete with each other for market share. In this type of economic system the government’s involvement is not restrictive. Lenin opposed global trade and he was more in favour of communism. This is where individuals are not permitted to own any property as everything is owned by the government. Keynes believed in a more socialistic economy. This is the system where individuals own some of the property but your major industries are owned by the government. This system relies on government interference such as monetary and fiscal policies which help the government regulate the economy. In Germany, after the world war 1, hyperinflation hit the Germans which ensured the collapse of many bank account holders and this caused working class citizens to lose out on their personal savings and many blamed it on communism. USA had a similar catastrophe as many people invested their returns in stock markets which eventually crashed and this resulted in banks closing down and people pulling out their savings. All these events gradually led to the



Bibliography: (Oosthuizen F.J;2014 Business Management a contemporary compilation ; page 5; economic systems ;published by FVBC; ROODEPOORT) (Stanislaw, J. & Yergin, D. (2002). Commanding Heights: The Battle OF ideas. Virginia: PBS.) (Stanislaw, J. & Yergin, D. (2002). Commanding Heights:. Virginia: Agony of reform PBS.) Cameron, R. (1993). Europe’s Second Logistic. Chapter 5 in A Concise Economic History of the World from Paleolithic Times to the Present. New York: Oxford University Press.

You May Also Find These Documents Helpful

  • Good Essays

    Geb 1

    • 749 Words
    • 3 Pages

    In the world economy today, we can see many changes from how the world use to be. People from all different places have integrated into a society where their cultures and values are welcomed no matter where the come from. This assignment will identify four factors that determined the modern world economy, describe the shifts over the past 30 years with examples, and discuss the implications in Britain, North America, and Hong Kong. In addition the current economy in Mexico will be introduced.…

    • 749 Words
    • 3 Pages
    Good Essays
  • Good Essays

    hca 240

    • 944 Words
    • 4 Pages

    John Maynard Keynes helped the allied government defend freedom by planning their wartime economies. Friedrich Von Hayek thought government interference in the economy was a threat to freedom. Keynes thought the market economy would go to excesses and when things got difficult the market wouldn’t work and the government would have to fix it. Hayek disagreed because he believed the market would take care of itself.…

    • 944 Words
    • 4 Pages
    Good Essays
  • Best Essays

    Radioshack's Woes

    • 2905 Words
    • 12 Pages

    Rehman, M Safdar. Interdisciplinary Journal of Contemporary Research In Business2. 12 (Apr 2011): 562-576. http://search.proquest.com.ezproxy1.apus.edu/docview/ 876011426?accountid=8289…

    • 2905 Words
    • 12 Pages
    Best Essays
  • Good Essays

    Milton Friedman and John Maynard Keynes were two respected economist throughout the 1900s. Friedman, an American economist, was a prominent advocate of free market. Whereas keynes, his rival, was a firm believer of fiscal policy. Although Friedman and Keynes seemed to rarely agree on their ideology, both made a substantial impact on the economic world. Despite the fact that they were two influential economist, Friedman’s Theory of Consumption Function is what made him superior to Keynes.…

    • 177 Words
    • 1 Page
    Good Essays
  • Satisfactory Essays

    Keynes and Hayek were two academic economists who had two differing views about what economic policies would pull the U.S. economy out of the Great Depression. What I find interesting is that these two views still have importance today because we’re in a pretty similar situation right now, the only difference is that this time it’s a recession instead of a depression.…

    • 617 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Compare & Contrast

    • 497 Words
    • 2 Pages

    2. McKay et al. A History at World Societies: Since 1500. Hampshire: MACMILLAN PRESS LTD. 2009…

    • 497 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Friedman vs Keynes

    • 955 Words
    • 4 Pages

    The discipline of macroeconomics deals with the performance, structure, and behavior of a national economy as a whole. Macroeconomists seek to understand the determinants of aggregate trends in an economy with particular focus on national income, unemployment, inflation, investment, and international trade. Milton Friedman and John Maynard Keynes, who was both great economists, embraced the different challenges of the world by imposing their own philosophies. Although both Friedman and Keynes have some similarities, strong disagreements about the monetary arena set them apart. These two gentlemen traveled different paths of economics their whole life to establish ground rules for the government to follow.…

    • 955 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Keynes Vs Hayek

    • 830 Words
    • 4 Pages

    In many of the history books that have been written, there is usually talk of two separate entities battling for the highest spot on the ladder of war and economic prosperity. Along the lines of these readings, there is also discussion of the battle against free market and government control. One piece excerpted from these history discussions is the struggle between the ideas of John Maynard Keynes and Friedrich von Hayek that arose during the 20th century. Both of these men held large ideas on how a country’s economy should be run. As time passed between the 1900’s and the turn of the millennium, the ideas of these men would lead to the greatest battle the world would then see. Instead of using gunpowder and steel as weapons in this war, much…

    • 830 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Commanding Heights Essay

    • 7534 Words
    • 31 Pages

    Friedrich Hayek and John Maynard Keynes were contemporaries and economists with rival views. Their two schools of thought dominated Western economic theory in the 20th century. Each had their period of dominance over the mainstream. Hayek was a believer in free markets whereas Keynes believed in strong government regulation of markets.…

    • 7534 Words
    • 31 Pages
    Good Essays
  • Good Essays

    interfere in the economy to balance it out when needed. For example, a public entity…

    • 584 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Keynesian Economic Theory

    • 2056 Words
    • 9 Pages

    In laymen’s term, the main belief of Keynesianism is that when the free market fails, the government should spend money it doesn’t have to stimulate and balance the economy. Unlike Classicists, John Maynard Keynes believed that collective demand of the people determined the economy’s activity and that in adequate demand would lead to high, drawn out periods of unemployment. The theory was adopted post WWII by western nations (1950-1960’s) and later by most capitalist governments. In the 1970’s many governments began to jump ship when highly respected economists questioned the ability of the government to regulate business cycles. Today, this school of economics can nonetheless, still be found worldwide in many dynamics of a national economy. Whether it is the right policy to be utilized has always been in question and will probably remain to be until adequate proof of its success or failure can be established.…

    • 2056 Words
    • 9 Pages
    Powerful Essays
  • Powerful Essays

    Neo-Liberalism

    • 2020 Words
    • 9 Pages

    Internationally Keynesianism involved setting up the Bretton Woods institutions, the IMF and World Bank, which were to prevent currencies becoming devalued, so enabling economies to remain stable even when they ran temporary trade deficits. ie intended to strengthen national control over economies.…

    • 2020 Words
    • 9 Pages
    Powerful Essays
  • Better Essays

    School of Economics and Management, Tsinghua University, Beijing 100084, China xiew@em.tsinghua.edu.cn 2 INSEAD, France steven.white@insead.edu…

    • 10521 Words
    • 43 Pages
    Better Essays
  • Good Essays

    Csr Case Study

    • 6604 Words
    • 27 Pages

    IOSR Journal of Business and Management (IOSRJBM) ISSN: 2278-487X Volume 3, Issue 5 (Sep,-Oct. 2012), PP 17-27 www.iosrjournals.org…

    • 6604 Words
    • 27 Pages
    Good Essays
  • Powerful Essays

    Tastee Snax Cookies

    • 2554 Words
    • 11 Pages

    Octob 17th October 2012 Antwerp M Antwerp Management School 1 Table of Contents INTRODUCTION .............................................................................................................................................. .. 3 1 PROBLEM STATEMENT .......................................................................................................................... 4 2 ASSUMPTIONS & APPROXIMATIONS ................................................................................................ 4 3 SOLUTION APPROACH ............................................................................................................................…

    • 2554 Words
    • 11 Pages
    Powerful Essays