Learning Economic Theories

Already a couple of days in, and I'm learning that there is a lot more to learn. I've been focusing on the article of The Great Depression in Wikipedia to kind of give me an overview. This also is a big area that economists have spent a lot of time researching.

The article also tries to educate on the various theories of economics such as Keynesian, Classical, and Neoclassical. These are all academically created theories, but it is interesting to see how they have influenced government policy.

The Great Depression spurred governments to make drastic changes in policy, in particular the US government. The adoption of new policies in the United States seems to have dramatically changed our culture over the past 75 years or so. This is going to be worth exploring further for me, but I'll try to highlight a few points here.

Keynesian economics advocates active fiscal policy, which means the government gets involved in trying to smooth out normal business cycles in the economy. We see this in government deficit spending today during times when the economy is slowing.

Monetary policy also changed dramatically, by moving away from the gold standard in currency. Essentially, we moved to a system where a 'dollar' is measured on it's own and not in relation to gold. This allows the government to control what the value of a dollar is. I have a lot more to read here, but we essentially see this today with the Federal Reserve when they change their interest rates.

Clearly, I have a lot more to read to get a grasp on this stuff. I remember a bit of it from high school history, but just a bit. These are just the basics that I'll have to build on, so I'm not going to be able to jump into big stuff right away. I'm looking at the theories right now, but I think I'd like to tackle the topic of Debt first -- and understand how it's used today, and how that has changed over the years.