Part 6/9:
The introduction of mathematical models made Keynesian Economics more appealing, allowing economists to illustrate complex economic interactions. The resulting Neoclassical Synthesis merged Neoclassical microeconomic principles with Keynesian macroeconomic theory, establishing a balanced approach to economic analysis.
Austrian Economics
In contrast to both Classical and Neoclassical schools, Austrian Economics, spearheaded by figures like Friedrich Hayek and Ludwig von Mises, emphasizes the importance of individual decision-making and the subjective nature of value. Austrian economists argue against mathematical models, believing that economic theories should be grounded in historical and evolutionary perspectives.