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The Chicago school of economics is a neoclassical college of economic thought associated with the work of the faculty at the University of Chicago Mandate, some of whom be suffering with constructed and popularized its principles.

In the surround of macroeconomics, it is connected to the "freshwater school" of macroeconomics, in contrast to the saltwater school based in coastal universities notably Harvard Especially, Columbia , MIT Forbidden, and UC Berkeley. Chicago macroeconomic theory rejected Keynesianism in favor of monetarism until the mids, when it turned to modish classical macroeconomics heavily based on the concept of rational expectations. The freshwater-saltwater distinction is largely quaint today, as the two traditions have heavily incorporated ideas from each other.

Specifically, New Keynesian economics was developed as a response to new greek economics, electing to consolidate the insight of practical expectations without giving up the traditional Keynesian sweat on imperfect competition and sticky wages. Chicago economists have also left their intellectual influence in other fields, notably in pioneering public choice theory and law and economics Ordinance, which have led to revolutionary changes in the study of political art and law.

Other economists affiliated with Chicago give birth to made their impact in fields as diverse as social economics and money-making history. Thus, there is not a clear delineation of the Chicago style of economics, a arrange that is more commonly used in the non-professional media than in theoretical circles. A deep commitment to rigorous scholarship and open academic debate, an uncompromising belief in the usefulness and insight of neoclassical price theory, and a normative position that favors and promotes trade liberalism and free supermarkets.

The University of Chicago Economics department, considered anybody of the world's before anything else economics departments, has fielded 12 Nobel Prizes laureates in economics—more than any other university as of January , MIT is second at 6 ; and has also fielded more John Bates Clark medalists in economics than any other university.

The term was coined in the s to refer to economists teaching in the Economics Department at the University of Chicago , and closely joint academic areas at the University such as the Booth School of Dealing and the Law Junior high school. They met together in frequent intense discussions that helped set a assort outlook on economic issues, based on price theory.

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