by Bill O’Grady
The Economic Triangle: Part II
Last week, we referenced the basic philosophies of David Hume and Adam Smith and how their writings evolved into the economic theory of supply and demand. From there, we examined the weakness of supply and demand at the macro level and discussed an alternative model, the Economic Triangle, as a different means of explaining how various economic participants operate and the way in which political factors affect the triangle. This week, we will show how the Economic Triangle fits into the major economic systems, offer two contemporary examples and conclude with market ramifications.
The history of economic thought and political economics has generated a plethora of theories and paradigms for balancing these interests. Here are some of the important ones: