New Classical & New Keynesian Economic Ideas (HINDI)

Adam Smith, emphasizes the efficiency of the market economy, the ability of the price system to transmit vital information from producers to consumers, and vice versa, and to coordinate allocation decisions, in a manner far beyond the capacity of any central planner. The other has focused its concern on the shortcomings of capitalism, particularly on the periodic episodes of massive unemployment of capital and labor. Surely, adherents of this view claim, these cannot be the manifestations of an efficient economic system. To the classical believers of the efficiency of market economies, these episodes were viewed as disequilibrium situations, temporary aberrations of an otherwise efficient economy; market forces, if left to themselves, would quickly restore equilibrium. The New Classical Economists, have gone one step further: they deny the very existence of a problem; the massive changes in employment levels may best be interpreted. Keynes' and his modern day followers, these views are not just absurd: they make a mockery of the "scientific method" which their adherents claim to follow. Worse still, they are irresponsible: to the extent that governments follow the noninterventionist policies often advocated, they not only condemn those individuals who cannot obtain gainful employment to the economic deprivation which results, but they also condemn the society which condones this unemployment to a host of social and economic consequences which follow from that unemployment. One of Keynes' great contributions was, in effect, a reconciliation of the two opposing views of capitalism: rather than denying either the existence of the unemployment problem or its importance, he confronted it head-on, argued that limited government intervention could correct this malady, and with this one malady corrected, the economy would once again operate in an efficient manner: the classical view would then be restored. Samuelson dubbed this, the Neoclassical synthesis. The very reasons for the success of Keynes' approach provided the basis for the eventual disillusionment. Keynes had attempted to retain as much of the classical (neoclassical) apparatus as he could; the standard model was changed in minimal ways, with dramatic consequences. The neoclassical synthesis, as attractive ideologically as it was for those who believed in the market system, yet were disturbed by massive unemployment, was taken as an article of faith, not derived from any general theoretical structure: the fundamental question of why the failures of the market economy should only occur in the massive doses. The name, "Rational Expectations" school is, however, misleading: the central doctrines of the approach derive not from its belief in rational expectations, however plausible or implausible that assumption might be; but rather from its old classical assumptions of market clearing. And with those assumptions, the conclusion that there is no unemployment, and the irrelevance of government macro-policy. The New Keynesian Economics provides a general theory of the economy, derived from microeconomic principles (and thus integrates the two sub-disciplines.) It succeeds both in filling the lacunae in traditional Keynesian theory (e.g. by explaining partial wage rigidities, rather than simply assuming rigid wages) and resolving the paradoxes and inconsistencies of more traditional Keynesian theory (both the internal inconsistencies, e.g. concerning how expectations are formed and the inconsistencies between its predictions and observations.) It provides an explanation both for an equilibrium level of unemployment (through the efficiency wage theories) and for business fluctuations. The theory of business fluctuations it provides is simple: in broad outline, certain shocks to the economy affect the stock of working capital of firms. Even if firms had perfect access to the credit markets (that is, they could borrow as much as they wished, at the actuarially fair interest rate), the amount they would be willing to borrow is limited by their willingness to bear risk; the fixed commitments associated with loan contracts imply that, as the working capital which is available is reduced, the risk (bankruptcy probability) associated with any level of borrowing increases. Thus, if their working capital is reduced, their desired production level (given that they do not have fixed commitments to sell their products) is reduced; and it takes a number of periods before the levels of working capital are restored to normal.
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[@ramchadnrahumagain9137]

Thanks a lot from Nepal.I regularly go throug your lessons.Your way of teaching is awesome .

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Welcome 🙏

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Thanks sir for this informative vedio...ireally aggree with ur view about that u tube vedios are just helping and not for comprehensive study but believe me sir its really satisfactory to listen ur vedios as our professors taught us at college..thnks once again..live long to teach us always like that😊

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krugman book for economics

[@gomsi4u]

Superb Video... Seems like Ocean of economics is within you... Great going sir... God bless you

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Thanks a ton

[@nakuldeovanshi9391]

Sir, Aap bahut Gazab ka samjhate hai, I have already qualified for JRF but whenever I have a doubt, I watch your videos.

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It's my pleasure

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Your opinion matters sir! With a small example you proved the point!

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Thanks for appreciating

[@WaseemAhmed-op4lx]

Thank yu sir from Jammu and Kashmir

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welcome

[@prasenjeetrathore]

In my opinion government intervention doesn't work in sectors such as schooling is because there is no accountability for the investment made. Private School offer better services so even though some school may be expensive, as long as there is demand there will be services offered accordingly to the market. You can clearly see this in the case of private schools in Dharawi in Mumbai, even people living in dharawi prefer small private school because there is more accountability , and they actually know if their student is being taught or if the teachers are coming to teach in the school. In government school since the consumer is not directly spending his money he/she is not that concerned about what he/she is getting out of that school.

[@mohdahmed5030]

Sir you are also an good economist

[@saranyaps3361]

Very good class sir. IAM from Kerala... thanks for the class

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Welcome 🙏

[@shabanaansari447]

Jazzak Allah, Allah bless you more and more. Aameen.

[@kuldeepkumarmahto5266]

Great Job Sir!
Your videos are very helpful for me

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You are always welcome 🙏

[@sugandhaverma4505]

Sir please upload new classical theory of income and employment in detail 🙏🙏
I couldn't find any of vedio on you tube which explains new classical theory in detail ( mathematically)

[@astrodarpan2476]

I said some days ago and you uploaded!!! Wow thanks:!!!!!!! Now monetarist theory also sir!!! From Nepal!!!!!

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Hope you enjoyed it!

[@ravikumar-vr6zm]

jabardast Sir...

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Thanks 🙏

[@yoursolution2356]

very excellence lecture sir Nepal🇳🇵

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Thanks

[@dharmendrakalita7751]

Thank you sir for this valuable information

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Most welcome

[@vijaykumar-ly1ye]

धन्यवाद गुरु जी🙏🙏, आपसे अनुरोध है कि अगर संभव हो तो एक वीडियो real and monetary rigidities पर भी बनाएं , यह अच्छे से समझ नहीं आता है।

[@SureshKumar-zj8vp]

Your video are very useful for us

[@EZClassesfaghsa]

Soon I will upgrade all these lectures besides undertaking new topics.

[@gurditsingh3301]

Too good sir ji☺️☺️

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Thanks 🙏

[@manishapassi7510]

thanks a lot sir

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Most welcome

[@kdkidz6496]

Sir have you make video on .. relationship between taxation and consumption function.. increase of taxation and decrease of taxation and its impact on consumption function curve .. I saw your many videos but this concept not covered in that .. so please sent link if you made

[@rajni8510]

Thanks sir from Chandigarh

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You are always welcome 🙏

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Sir, Management Classes TH-cam channel does not exist now on TH-cam. Please sir, tell us about that.

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Channel hack ho gaya hay Dr Naved is working on the issue.

[@romimukherjee8042]

Sir your videos are really useful thank you for the contents !! Sir can you please suggest whether HL ahuja macro is good or not ?

[@EZClassesfaghsa]

It's good, but there are number of other good books you find if you try to do some research.

[@romimukherjee8042]

@@EZClassesfaghsa okay thank you so much sir! Actually I am preparing for UPSC and I have chosen economics as my optional subject

[@hzofficial980]

@@romimukherjee8042 I'm also preparing I think froyen is good

[@saudbhuiyan5557]

THANKS

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Welcome

[@shanzakhaliq2212]

Sir g is topic ki diagram b upload Kar dyn

[@rahadhossainmizi3969]

Thanks from Bangladesh.

[@EZClassesfaghsa]

You are most welcome

[@VanshSharma-nt4in]

Nice 🙏🙏

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Thanks

[@prakashbhatt9589]

Awesome sir

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Thanks

[@eachoneteachone9447]

thank you sir... really helpful

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Keep watching

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Thank you, sir.

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You're welcome

[@zaid0999]

Great sir....keep it up👍

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You Keep watching

[@bhartithakur4230]

Iwant ur favour to study all economics from books..plz tell me books to study all content ?is it sufficient to study microeconomics from hl ahuja and macro from kc.rana&verma plz tell me books that should i follow to crack jrf... plz reply sir I'm really very confuse

[@myzone1084]

Sir please recommend books for macroeconomics.
And currently I have T. Froyen.

[@ShubhamDwivedi]

HL Ahuja Macroeconomics - theory and practice .
thats a great book, though at times repetitive but very lucid and explanatory.

[@myzone1084]

@@ShubhamDwivedi Thank you.

[@ankurtaneja5533]

too good . thankyou so much

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Most welcome 😊

[@hemapriya4450]

Sir can you please upload videos by explaining in english or with English subtitles

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Sir plz mjy ye b batye k as ko paper me solve kasy krna

[@lakshyakhamari371]

Super class sir

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Keep watching

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Sir pls make a video on pigou effect and Keynesian effect

[@krishnaprasadram8734]

Thank you sir .... 🙏🙏🙏🙏🙏

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Most welcome

[@saiqaaamir4286]

Sir kindly explain more on rational.expectations and new Keynesians..

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I think you already go it

[@madhu2536]

Thank you sooo much sor

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Most welcome

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very nice sir ur lectures may allah live u long

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Thanks

[@saikaali7351]

you are the best sir

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Thanks

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sir are you university teacher

[@nancygupta4722]

Thanks sir

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Welcome

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Sir plzz thode easy way smjhaiye topics hi correlate nhi kr paarhi

[@SanjuSharma-ir6wv]

Nice but sir purA video hindi mai bhi banaiyai

[@aiyanalam2021]

It was nice lecture today sir.... Why did u skip ADAPTIVE EXPECTATIONS and Monetarist Theory by Friedman... Plz do make video of that ..
Thanks in Advance sir

[@EZClassesfaghsa]

For that I will make separate videos inshallah

[@aiyanalam2021]

@@EZClassesfaghsa Waiting for that lecture sir

[@saiqaaamir4286]

It would b very benefical

[@saikaali7351]

new keynes and new classical ka time period kiya hoga in terms of year

[@saikaali7351]

plz misperseption theory smjhade

[@saikaali7351]

new classocal and new keynres ka period mtlb year to mention krdety sir

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Kuch aap bhi to karay gay

[@saikaali7351]

plz sir btade abhi bhi neo classical and new classical m confusion h

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Wow

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Thanks

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Sir please slove NTA UGC NET economics questions papers numerical problem topic voice

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I will

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Kora teacher rough

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Thanks sir

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Welcome

[@RajuKumar-li8px]

Thanks sir

[@EZClassesfaghsa]

Welcome