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Introduction to Economic Theories (#unlinked)

Introduction to Economic Theories (#unlinked)#

by Erasmus University Rotterdam Learned on Coursera intro-economic-theories For: stable coin economics, AL#DEV-10

Terms and definitions#

cSC: current Stable Coin: USDT vs. USDC vs. BUSD

Question board#

  • Are we strong against risk that big companies manipulating aUSD price? How does (Post Keynesian)

Week1, Economics as a Science#

  • Four theories

    1. Social economics
    2. Institutional economics
    3. Post Keynesian economics
    4. Neoclassical economics. * Rationality in the four theories | - | Open information base | Closed information base | | :---------------: | :---------------------------------------------: | :------------------------------------------------------------: | | Group-referential | social economics:strong reciprocity | institutional economics:group-dependent rationality | | Self-referential | Post Keynesian economics: intuitive rationality | neoclassical economics: individual utility maximization(wiifm) |

  • Three actor angles:

    1. State (state agencies)
    2. Market (firms)
    3. Civil Society = communities (community actors) * Scarcity is not a given: means, ends, scarcity>>

  • Values in economics

    • Efficiency(narrow, broad), trust, freedom.
    • Social economics: embeddedness
  • Institutional economics: formal institution, informal institution, asymmetric.
  • Post Keynesian economics: more individual, AD, market power, uncertainty(not risk).
  • Neoclassical economics: Abstract theory, idealized context, mathematical market equilibrium.

  • Small things

    • AD: aggregate demand
    • Loss function
    • Utility function: law of diminishing marginal utility

Week1: Meaning by Utility Maximization?#

  • They use the blue line to show the SUM of utility function $U(A_1)+U(A_2)$. Then visualizing maximization budgets is much easier.