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165-482: It is the macroeconomic philosophy that dominated United States national policies from the time of the American Civil War until the mid-20th century. Closely related to mercantilism , it can be seen as contrary to classical economics . It consisted of these three core policies: The American School's key elements were promoted by John Quincy Adams and his National Republican Party , Henry Clay and

330-693: A fixed exchange rate regime, aligning their currency with one or more foreign currencies, typically the US dollar or the euro . Conventional monetary policy can be ineffective in situations such as a liquidity trap . When nominal interest rates are near zero, central banks cannot loosen monetary policy through conventional means. In that situation, they may use unconventional monetary policy such as quantitative easing to help stabilize output. Quantity easing can be implemented by buying not only government bonds, but also other assets such as corporate bonds, stocks, and other securities. This allows lower interest rates for

495-635: A fixed exchange rate system or even a currency union like the Economic and Monetary Union of the European Union , drawing on the research literature on optimum currency areas . Macroeconomics as a separate field of research and study is generally recognized to start with the publication of John Maynard Keynes ' The General Theory of Employment, Interest, and Money in 1936. The terms "macrodynamics" and "macroanalysis" were introduced by Ragnar Frisch in 1933, and Lawrence Klein in 1946 used

660-810: A lord of the manor with a Roman Catholic church and priest. Thanks to the exchange with the Al-Andalus where the Arab Agricultural Revolution was underway, European agriculture transformed, with improved techniques and the diffusion of crop plants, including the introduction of sugar, rice, cotton and fruit trees (such as the orange). After 1492, the Columbian exchange brought New World crops such as maize, potatoes, tomatoes, sweet potatoes , and manioc to Europe, and Old World crops such as wheat, barley, rice, and turnips , and livestock (including horses, cattle, sheep and goats) to

825-436: A 2% inflation rate just because that has been the average the past few years; they will look at current monetary policy and economic conditions to make an informed forecast. In the new classical models with rational expectations, monetary policy only had a limited impact. Lucas also made an influential critique of Keynesian empirical models. He argued that forecasting models based on empirical relationships would keep producing

990-468: A 3% increase in output would lead to a 1% decrease in unemployment. The structural or natural rate of unemployment is the level of unemployment that will occur in a medium-run equilibrium, i.e. a situation with a cyclical unemployment rate of zero. There may be several reasons why there is some positive unemployment level even in a cyclically neutral situation, which all have their foundation in some kind of market failure : A general price increase across

1155-804: A basis for making economic forecasting . Well-known specific theoretical models include short-term models like the Keynesian cross , the IS–LM model and the Mundell–Fleming model , medium-term models like the AD–AS model , building upon a Phillips curve , and long-term growth models like the Solow–Swan model, the Ramsey–Cass–Koopmans model and Peter Diamond 's overlapping generations model . Quantitative models include early large-scale macroeconometric model ,

1320-613: A broader class of assets beyond government bonds. A similar strategy is to lower long-term interest rates by buying long-term bonds and selling short-term bonds to create a flat yield curve , known in the US as Operation Twist . Fiscal policy is the use of government's revenue ( taxes ) and expenditure as instruments to influence the economy. For example, if the economy is producing less than potential output , government spending can be used to employ idle resources and boost output, or taxes could be lowered to boost private consumption which has

1485-470: A combination of labor supply and labor demand trends have driven down the share of population employed in agriculture. During the 16th century in Europe, between 55 and 75% of the population was engaged in agriculture; by the 19th century, this had dropped to between 35 and 65%. In the same countries today, the figure is less than 10%. At the start of the 21st century, some one billion people, or over 1/3 of

1650-571: A core part of contemporary macroeconomics. The 2007–2008 financial crisis , which led to the Great Recession , led to major reassessment of macroeconomics, which as a field generally had neglected the potential role of financial institutions in the economy. After the crisis, macroeconomic researchers have turned their attention in several new directions: Research in the economics of the determinants behind long-run economic growth has followed its own course. The Harrod-Domar model from

1815-705: A fiat currency, called United States Notes , or "greenbacks". Towards the end of the Civil War in March 1865, Henry C. Carey , Lincoln's economic advisor, published a series of letters to the Speaker of the House entitled "The Way to Outdo England Without Fighting Her." Carey called for the continuance of the greenback policy even after the War, while also raising the reserve requirements of the banks to 50%. This would have allowed

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1980-664: A hazardous industry, and farmers worldwide remain at high risk of work-related injuries, lung disease, noise-induced hearing loss , skin diseases, as well as certain cancers related to chemical use and prolonged sun exposure. On industrialized farms , injuries frequently involve the use of agricultural machinery , and a common cause of fatal agricultural injuries in developed countries is tractor rollovers . Pesticides and other chemicals used in farming can be hazardous to worker health , and workers exposed to pesticides may experience illness or have children with birth defects. As an industry in which families commonly share in work and live on

2145-444: A high use of inputs (water, fertilizer, pesticide and automation). It is practiced mainly in developed countries. From the twentieth century onwards, intensive agriculture increased crop productivity. It substituted synthetic fertilizers and pesticides for labor, but caused increased water pollution, and often involved farm subsidies. Soil degradation and diseases such as stem rust are major concerns globally; approximately 40% of

2310-427: A little cheaper. Well, whether a thing is cheap or dear depends upon what we can earn by our daily labor. Free trade cheapens the product by cheapening the producer. Protection cheapens the product by elevating the producer. Under free trade the trader is the master and the producer the slave. Protection is but the law of nature, the law of self-preservation, of self-development, of securing the highest and best destiny of

2475-452: A maxim that is a thousand times better than that, and it is the protection maxim: 'Buy where you can pay the easiest.' And that spot of earth is where labor wins its highest rewards. The American System was important in the election politics for and against Grover Cleveland , the first Democrat elected after the Civil War, who, by reducing tariffs protecting American industries in 1893, began rolling back federal involvement in economic affairs,

2640-442: A medium-run equilibrium (or "potential") level, the process would be slow at best. Keynes coined the term liquidity preference (his preferred name for what is also known as money demand ) and explained how monetary policy might affect aggregate demand, at the same time offering clear policy recommendations for an active role of fiscal policy in stabilizing aggregate demand and hence output and employment. In addition, he explained how

2805-407: A moneyed corporation". The two sides of the debate became even more starkly defined as a result of the actions of Second Bank President Nicholas Biddle and Henry Clay himself. Upon hearing of Jackson's distaste for his bank, Biddle immediately set about opening new branches of the bank in key political districts in hopes of manipulating Congressional opinion. Although this action indeed helped acquire

2970-420: A parallel division of macroeconomic policies into short-run policies aimed at mitigating the harmful consequences of business cycles (known as stabilization policy ) and medium- and long-run policies targeted at improving the structural levels of macroeconomic variables. Stabilization policy is usually implemented through two sets of tools: fiscal and monetary policy. Both forms of policy are used to stabilize

3135-447: A positive note, the gender gap in access to mobile internet in low- and middle-income countries fell from 25 percent to 16 percent between 2017 and 2021, and the gender gap in access to bank accounts narrowed from 9 to 6 percentage points. Women are as likely as men to adopt new technologies when the necessary enabling factors are put in place and they have equal access to complementary resources. Agriculture, specifically farming, remains

3300-528: A process that became dominant by the 1920s and continued until Herbert Hoover 's attempts to deal with the worsening Great Depression . As the United States entered the 20th century, the American School was the policy of the United States under such names as American Policy, economic nationalism , National System, Protective System, Protection Policy, and protectionism, which alludes only to

3465-438: A school of thought, from the competing theory of economics at the time, the "British System" represented by Adam Smith in his work Wealth of Nations . The American School included three cardinal policy points: Henry C. Carey , a leading American economist and adviser to Abraham Lincoln , in his book Harmony of Interests , displays two additional points of this American School economic philosophy that distinguishes it from

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3630-471: A series of laws during the American Civil War , was able to fully implement what Hamilton , Clay , List , and Carey theorized, wrote about, and advocated. As soon as Lincoln took office, the old Whig coalition finally controlled the entire government. It immediately tripled the average tariff, began to subsidize the construction of a transcontinental railroad in California even though a desperate war

3795-404: A significant decrease in genetic diversity and resources among livestock breeds, leading to a corresponding decrease in disease resistance and local adaptations previously found among traditional breeds. Grassland based livestock production relies upon plant material such as shrubland , rangeland , and pastures for feeding ruminant animals. Outside nutrient inputs may be used, however manure

3960-498: A similar effect. Government spending or tax cuts do not have to make up for the entire output gap . There is a multiplier effect that affects the impact of government spending. For instance, when the government pays for a bridge, the project not only adds the value of the bridge to output, but also allows the bridge workers to increase their consumption and investment, which helps to close the output gap. The effects of fiscal policy can be limited by partial or full crowding out . When

4125-492: A small area of forest is cleared by cutting and burning the trees. The cleared land is used for growing crops for a few years until the soil becomes too infertile, and the area is abandoned. Another patch of land is selected and the process is repeated. This type of farming is practiced mainly in areas with abundant rainfall where the forest regenerates quickly. This practice is used in Northeast India, Southeast Asia, and

4290-545: A special case of the more general Ramsey growth model , where households' savings rates are not constant as in the Solow model, but derived from an explicit intertemporal utility function . In the 1980s and 1990s endogenous growth theory arose to challenge the neoclassical growth theory of Ramsey and Solow. This group of models explains economic growth through factors such as increasing returns to scale for capital and learning-by-doing that are endogenously determined instead of

4455-403: A whole intellectural framework - a novel theory of economics that explained why markets might not clear, which would evolve into a school of thought known as Keynesian economics , also called Keynesianism or Keynesian theory. In Keynes' theory, aggregate demand - by Keynes called "effective demand" - was key to determining output. Even if Keynes conceded that output might eventually return to

4620-552: A year, or requiring irrigation. In all of these environments perennial crops are grown (coffee, chocolate) and systems are practiced such as agroforestry . In temperate environments, where ecosystems were predominantly grassland or prairie , highly productive annual farming is the dominant agricultural system. Important categories of food crops include cereals, legumes, forage, fruits and vegetables. Natural fibers include cotton, wool , hemp , silk and flax . Specific crops are cultivated in distinct growing regions throughout

4785-473: A yearly summit to discuss safety. Overall production varies by country as listed. The twenty largest countries by agricultural output (in nominal terms) at peak level as of 2018, according to the IMF and CIA World Factbook . Cropping systems vary among farms depending on the available resources and constraints; geography and climate of the farm; government policy; economic, social and political pressures; and

4950-514: Is a branch of economics that deals with the performance, structure, behavior, and decision-making of an economy as a whole. This includes regional, national, and global economies . Macroeconomists study topics such as output / GDP (gross domestic product) and national income , unemployment (including unemployment rates ), price indices and inflation , consumption , saving , investment , energy , international trade , and international finance . Macroeconomics and microeconomics are

5115-584: Is a hybrid of a Chilean and a North American species, developed by breeding in Europe and North America. The indigenous people of the Southwest and the Pacific Northwest practiced forest gardening and fire-stick farming . The natives controlled fire on a regional scale to create a low-intensity fire ecology that sustained a low-density agriculture in loose rotation; a sort of "wild" permaculture . A system of companion planting called

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5280-547: Is affected. Expansionary monetary policy lowers interest rates, increasing economic activity, whereas contractionary monetary policy raises interest rates. In the case of a fixed exchange rate system, interest rate decisions together with direct intervention by central banks on exchange rate dynamics are major tools to control the exchange rate. In developed countries, most central banks follow inflation targeting , focusing on keeping medium-term inflation close to an explicit target, say 2%, or within an explicit range. This includes

5445-626: Is both a cause of and sensitive to environmental degradation , such as biodiversity loss , desertification , soil degradation , and climate change , all of which can cause decreases in crop yield. Genetically modified organisms are widely used, although some countries ban them . The word agriculture is a late Middle English adaptation of Latin agricultūra , from ager 'field' and cultūra ' cultivation ' or 'growing'. While agriculture usually refers to human activities, certain species of ant , termite and beetle have been cultivating crops for up to 60 million years. Agriculture

5610-444: Is defined with varying scopes, in its broadest sense using natural resources to "produce commodities which maintain life, including food, fiber, forest products, horticultural crops, and their related services". Thus defined, it includes arable farming , horticulture, animal husbandry and forestry , but horticulture and forestry are in practice often excluded. It may also be broadly decomposed into plant agriculture , which concerns

5775-468: Is implemented through automatic stabilizers without any active decisions by politicians. Automatic stabilizers do not suffer from the policy lags of discretionary fiscal policy . Automatic stabilizers use conventional fiscal mechanisms, but take effect as soon as the economy takes a downturn: spending on unemployment benefits automatically increases when unemployment rises, and tax revenues decrease, which shelters private income and consumption from part of

5940-409: Is measured by the unemployment rate, i.e. the percentage of persons in the labor force who do not have a job, but who are actively looking for one. People who are retired, pursuing education, or discouraged from seeking work by a lack of job prospects are not part of the labor force and consequently not counted as unemployed, either. Unemployment has a short-run cyclical component which depends on

6105-416: Is referred to as an "environment's source function", and this function is depleted as resources are consumed or pollution contaminates the resources. The "sink function" describes an environment's ability to absorb and render harmless waste and pollution: when waste output exceeds the limit of the sink function, long-term damage occurs. The division into various time frames of macroeconomic research leads to

6270-438: Is returned directly to the grassland as a major nutrient source. This system is particularly important in areas where crop production is not feasible because of climate or soil, representing 30–40 million pastoralists. Mixed production systems use grassland, fodder crops and grain feed crops as feed for ruminant and monogastric (one stomach; mainly chickens and pigs) livestock. Manure is typically recycled in mixed systems as

6435-464: Is that of an economy's openness, economic theory distinguishing sharply between closed economies and open economies . It is usual to distinguish between three time horizons in macroeconomics, each having its own focus on e.g. the determination of output: National output is the total amount of everything a country produces in a given period of time. Everything that is produced and sold generates an equal amount of income. The total net output of

6600-470: Is the product of two inputs: capital and labor. The Solow model assumes that labor and capital are used at constant rates without the fluctuations in unemployment and capital utilization commonly seen in business cycles. In this model, increases in output, i.e. economic growth, can only occur because of an increase in the capital stock, a larger population, or technological advancements that lead to higher productivity ( total factor productivity ). An increase in

6765-556: The Constitutional Convention shows that direct government involvement in the economy was intended by the Founders. The goal, most forcefully articulated by Hamilton, was to ensure that dearly won political independence was not lost by being economically and financially dependent on the powers and princes of Europe. The creation of a strong central government able to promote science, invention, industry and commerce,

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6930-608: The Federal Reserve and the European Central Bank , which are generally considered to follow a strategy very close to inflation targeting, even though they do not officially label themselves as inflation targeters. In practice, an official inflation targeting often leaves room for the central bank to also help stabilize output and employment, a strategy known as "flexible inflation targeting". Most emerging economies focus their monetary policy on maintaining

7095-500: The Indus Valley civilization . In China, from the 5th century BC, there was a nationwide granary system and widespread silk farming . Water-powered grain mills were in use by the 1st century BC, followed by irrigation. By the late 2nd century, heavy ploughs had been developed with iron ploughshares and mouldboards . These spread westwards across Eurasia. Asian rice was domesticated 8,200–13,500 years ago – depending on

7260-552: The Industrial Revolution , when tariff rates on manufactures peaked at 57%: For centuries England has relied on protection, has carried it to extremes and has obtained satisfactory results from it. There is no doubt that it is to this system that it owes its present strength. President William McKinley (1897–1901) stated at the time: [They say] if you had not had the Protective Tariff things would be

7425-583: The Paleolithic , after 10,000 BC. Staple food crops were grains such as wheat and barley, alongside industrial crops such as flax and papyrus . In India , wheat, barley and jujube were domesticated by 9,000 BC, soon followed by sheep and goats. Cattle, sheep and goats were domesticated in Mehrgarh culture by 8,000–6,000 BC. Cotton was cultivated by the 5th–4th millennium BC. Archeological evidence indicates an animal-drawn plough from 2,500 BC in

7590-514: The Tigris and Euphrates rivers and a canal system for irrigation. Ploughs appear in pictographs around 3,000 BC; seed-ploughs around 2,300 BC. Farmers grew wheat, barley, vegetables such as lentils and onions, and fruits including dates, grapes, and figs. Ancient Egyptian agriculture relied on the Nile River and its seasonal flooding. Farming started in the predynastic period at the end of

7755-491: The Whig Party and Abraham Lincoln through the early Republican Party which embraced, implemented and maintained this economic system. The American School of economics represented the legacy of Alexander Hamilton , who in his Report on Manufactures , argued that the U.S. could not become fully independent until it was self-sufficient in all necessary economic products. Hamilton rooted this economic system, in part, in

7920-630: The molecular clock estimate that is used – on the Pearl River in southern China with a single genetic origin from the wild rice Oryza rufipogon . In Greece and Rome , the major cereals were wheat, emmer, and barley, alongside vegetables including peas, beans, and olives. Sheep and goats were kept mainly for dairy products. In the Americas, crops domesticated in Mesoamerica (apart from teosinte) include squash, beans, and cacao . Cocoa

8085-475: The multiplier effect would magnify a small decrease in consumption or investment and cause declines throughout the economy, and noted the role that uncertainty and animal spirits can play in the economy. The generation following Keynes combined the macroeconomics of the General Theory with neoclassical microeconomics to create the neoclassical synthesis . By the 1950s, most economists had accepted

8250-548: The organic movement . Unsustainable farming practices in North America led to the Dust Bowl of the 1930s. Pastoralism involves managing domesticated animals. In nomadic pastoralism , herds of livestock are moved from place to place in search of pasture, fodder, and water. This type of farming is practiced in arid and semi-arid regions of Sahara , Central Asia and some parts of India. In shifting cultivation ,

8415-482: The "American System" because its plantation owners were heavily reliant on production of cotton for export, and the American System produced lower demand for their cotton and created higher costs for manufactured goods. After 1828 the United States kept tariffs low until the election of Abraham Lincoln in 1861. Opposition to the economic nationalism embodied by Henry Clay's American System came primarily from

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8580-499: The 1824 Rivers and Harbors Act . Other developments included the various Army expeditions to the west, beginning with Lewis and Clark's Corps of Discovery in 1804 and continuing into the 1870s (see for example, the careers of Major Stephen Harriman Long and Major General John C. Frémont ), almost always under the direction of an officer from the Army Corps of Topographical Engineers , and which provided crucial information for

8745-411: The 1940s attempted to build a long-run growth model inspired by Keynesian demand-driven considerations. The Solow–Swan model worked out by Robert Solow and, independently, Trevor Swan in the 1950s achieved more long-lasting success, however, and is still today a common textbook model for explaining economic growth in the long-run. The model operates with a production function where national output

8910-540: The Amazon Basin. Subsistence farming is practiced to satisfy family or local needs alone, with little left over for transport elsewhere. It is intensively practiced in Monsoon Asia and South-East Asia. An estimated 2.5 billion subsistence farmers worked in 2018, cultivating about 60% of the earth's arable land . Intensive farming is cultivation to maximize productivity, with a low fallow ratio and

9075-548: The American School through restoration of high tariffs. A subsequent further return was enacted as President Herbert Hoover responded to the 1929 crash and the subsequent bank failures and unemployment by signing the Smoot-Hawley Tariff Act , which some economists considered to have deepened the Great Depression , while others disagree. The New Deal continued infrastructure improvements through

9240-563: The American System proved one of the trickiest for Jacksonian presidents. Tariffs disproportionately benefited the industrial interests of the North while causing injury to the import-dependent agrarian South and West. As a result, the issue proved extremely divisive to the nation's unity, something Jacksonian presidents sought to protect at all costs. The Jacksonian presidents, particularly the southern-born Jackson, had to be extremely cautious when lowering tariffs in order to maintain their support in

9405-454: The American system, for it is the only one ever devised the tendency of which was that of elevating while equalizing the condition of man throughout the world. The government issue of fiat paper money has also been associated with the American School from the 1830s onwards. The policy has roots going back to the days of the American colonies, when such a type of currency called colonial scrip

9570-560: The Americas. Irrigation , crop rotation , and fertilizers advanced from the 17th century with the British Agricultural Revolution , allowing global population to rise significantly. Since 1900, agriculture in developed nations, and to a lesser extent in the developing world, has seen large rises in productivity as mechanization replaces human labor, and assisted by synthetic fertilizers , pesticides, and selective breeding . The Haber-Bosch method allowed

9735-602: The Democratic Party of Andrew Jackson, Martin van Buren, and James K. Polk. These three presidents styled themselves as the peoples' politicians, seeking to protect both the agrarian frontier culture and the strength of the Union. Jackson in particular, the founder of the movement, held an unflinching commitment to what he viewed as the sanctity of the majority opinion. In his first annual message to Congress, Jackson proclaimed that "the first principle of our system [is] that

9900-499: The Great Depression struck, the reigning economists had difficulty explaining how goods could go unsold and workers could be left unemployed. In the prevailing neoclassical economics paradigm, prices and wages would drop until the market cleared, and all goods and labor were sold. Keynes in his main work, the General Theory , initiated what is known as the Keynesian revolution . He offered a new interpretation of events and

10065-467: The Greenback! Let us continue on in the direction in which we now are moving, and we shall see ... not a re-establishment of the Union, but a complete and final disruption of it. Carey's plans did not come to fruition as Lincoln was assassinated the next month and new President Andrew Johnson supported the gold standard, and by 1879 the U.S. was fully back on the gold standard. The " American System "

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10230-475: The Keynesian school. A central development in new classical thought came when Robert Lucas introduced rational expectations to macroeconomics. Prior to Lucas, economists had generally used adaptive expectations where agents were assumed to look at the recent past to make expectations about the future. Under rational expectations, agents are assumed to be more sophisticated. Consumers will not simply assume

10395-1173: The Lucas critique. Like classical models, new classical models had assumed that prices would be able to adjust perfectly and monetary policy would only lead to price changes. New Keynesian models investigated sources of sticky prices and wages due to imperfect competition , which would not adjust, allowing monetary policy to impact quantities instead of prices. Stanley Fischer and John B. Taylor produced early work in this area by showing that monetary policy could be effective even in models with rational expectations when contracts locked in wages for workers. Other new Keynesian economists, including Olivier Blanchard , Janet Yellen , Julio Rotemberg , Greg Mankiw , David Romer , and Michael Woodford , expanded on this work and demonstrated other cases where various market imperfections caused inflexible prices and wages leading in turn to monetary and fiscal policy having real effects. Other researchers focused on imperferctions in labor markets, developing models of efficiency wages or search and matching (SAM) models, or imperfections in credit markets like Ben Bernanke . By

10560-665: The North. However, the tariffs indeed represented an economic nationalism that primarily benefited the Northern States, while increasing the cost of European imports in the South. This ran strongly contrary to Jacksonian ideals. In the end, despite Northern objections, both President Jackson and President Polk lowered tariffs. Jackson reformed the Tariff of 1828 (also known as the Tariff of Abominations ) by radically reducing rates in

10725-586: The Paleolithic Levant, 23,000 years ago, cereals cultivation of emmer , barley , and oats has been observed near the sea of Galilee. Rice was domesticated in China between 11,500 and 6,200 BC with the earliest known cultivation from 5,700 BC, followed by mung , soy and azuki beans. Sheep were domesticated in Mesopotamia between 13,000 and 11,000 years ago. Cattle were domesticated from

10890-479: The Second Bank of the United States and advocacy of protectionist tariffs, as serving moneyed or special interests rather than the majority of Americans. The Jacksonians opposed other elements of Clay's ideology, including support for internal infrastructural improvements, on the grounds that they represented governmental overstretch as well. Several key events, legislative conflicts, and presidential vetoes shaped

11055-497: The Tariff of 1832. This helped stave off the Southern nullification crisis , in which Southern states refused to enact the tariff, and threatened secession if faced with governmental coercion. The bill that reduced the Tariff of 1828 was co-authored by Henry Clay in a desperate attempt to maintain national unity. Polk, on the other hand, in his characteristically efficient way, managed to push through significant tariff reductions in

11220-486: The Three Sisters was developed in North America. The three crops were winter squash , maize, and climbing beans. Indigenous Australians , long supposed to have been nomadic hunter-gatherers , practiced systematic burning, possibly to enhance natural productivity in fire-stick farming. Scholars have pointed out that hunter-gatherers need a productive environment to support gathering without cultivation. Because

11385-480: The Treasury. Clay first used the term "American System" in 1824, although he had been working for its specifics for many years previously. Portions of the American System were enacted by Congress. The Second Bank of the United States was rechartered in 1816 for 20 years. High tariffs were maintained from the days of Hamilton until 1832. However, the national system of internal improvements was never adequately funded;

11550-420: The US to develop its economy independent of foreign capital (primarily British gold). Carey wrote: The most serious move in the retrograde direction is that one we find in the determination to prohibit the further issue of [United States Notes] ... To what have we been indebted for [the increased economic activity]? To protection and the " greenbacks"! What is it that we are now laboring to destroy? Protection and

11715-793: The United Nations (FAO) posits that the roles and responsibilities of women in agriculture may be changing – for example, from subsistence farming to wage employment, and from contributing household members to primary producers in the context of male-out-migration. In general, women account for a greater share of agricultural employment at lower levels of economic development, as inadequate education, limited access to basic infrastructure and markets, high unpaid work burden and poor rural employment opportunities outside agriculture severely limit women's opportunities for off-farm work. Women who work in agricultural production tend to do so under highly unfavorable conditions. They tend to be concentrated in

11880-463: The United States further in the free market direction, and away from its American School economic system. Friedrich List 's influence among developing nations has been considerable. Japan has followed his model. It has also been argued that Deng Xiaoping 's post-Mao policies were inspired by List as well as recent policies in India. General: Macroeconomics Heterodox Macroeconomics

12045-461: The United States is roughly 1.7 times more productive than it was in 1948. Agriculture employed 873 million people in 2021, or 27% of the global workforce, compared with 1 027 million (or 40%) in 2000. The share of agriculture in global GDP was stable at around 4% since 2000–2023. Despite increases in agricultural production and productivity, between 702 and 828 million people were affected by hunger in 2021. Food insecurity and malnutrition can be

12210-544: The annual work-related death toll among agricultural employees is at least 170,000, twice the average rate of other jobs. In addition, incidences of death, injury and illness related to agricultural activities often go unreported. The organization has developed the Safety and Health in Agriculture Convention, 2001 , which covers the range of risks in the agriculture occupation, the prevention of these risks and

12375-553: The available work force, were employed in agriculture. This constitutes approximately 70% of the global employment of children, and in many countries constitutes the largest percentage of women of any industry. The service sector overtook the agricultural sector as the largest global employer in 2007. In many developed countries, immigrants help fill labor shortages in high-value agriculture activities that are difficult to mechanize. Foreign farm workers from mostly Eastern Europe, North Africa and South Asia constituted around one-third of

12540-447: The business cycle, and a more permanent structural component, which can be loosely thought of as the average unemployment rate in an economy over extended periods, and which is often termed the natural or structural rate of unemployment. Cyclical unemployment occurs when growth stagnates. Okun's law represents the empirical relationship between unemployment and short-run GDP growth. The original version of Okun's law states that

12705-459: The case of a very low interest level, the economy may be in a liquidity trap in which monetary policy becomes ineffective, which makes fiscal policy the more potent tool to stabilize the economy. Thirdly, in regimes where monetary policy is tied to fulfilling other targets, in particular fixed exchange rate regimes, the central bank cannot simultaneously adjust its interest rates to mitigate domestic business cycle fluctuations, making fiscal policy

12870-597: The central west coast and eastern central, early farmers cultivated yams, native millet, and bush onions, possibly in permanent settlements. In the Middle Ages , compared to the Roman period , agriculture in Western Europe became more focused on self-sufficiency . The agricultural population under feudalism was typically organized into manors consisting of several hundred or more acres of land presided over by

13035-467: The cities. While humans started gathering grains at least 105,000 years ago, nascent farmers only began planting them around 11,500 years ago. Sheep, goats, pigs, and cattle were domesticated around 10,000 years ago. Plants were independently cultivated in at least 11 regions of the world. In the 20th century, industrial agriculture based on large-scale monocultures came to dominate agricultural output. As of 2021 , small farms produce about one-third of

13200-409: The consequences of international trade in goods , financial assets and possibly factor markets like labor migration and international relocation of firms (physical capital). It explores what determines import , export , the balance of trade and over longer horizons the accumulation of net foreign assets . An important topic is the role of exchange rates and the pros and cons of maintaining

13365-468: The cultivation of useful plants, and animal agriculture , the production of agricultural animals. The development of agriculture enabled the human population to grow many times larger than could be sustained by hunting and gathering . Agriculture began independently in different parts of the globe, and included a diverse range of taxa , in at least 11 separate centers of origin . Wild grains were collected and eaten from at least 105,000 years ago. In

13530-404: The development of the macroeconomic research mainstream . Macroeconomics encompasses a variety of concepts and variables, but above all the three central macroeconomic variables are output, unemployment, and inflation. Besides, the time horizon varies for different types of macroeconomic topics, and this distinction is crucial for many research and policy debates. A further important dimension

13695-678: The difference may be considerable. Economists interested in long-run increases in output study economic growth. Advances in technology, accumulation of machinery and other capital , and better education and human capital , are all factors that lead to increased economic output over time. However, output does not always increase consistently over time. Business cycles can cause short-term drops in output called recessions . Economists look for macroeconomic policies that prevent economies from slipping into either recessions or overheating and that lead to higher productivity levels and standards of living . The amount of unemployment in an economy

13860-529: The direct agricultural workforce and broader businesses that support the farms and farming populations. The major agricultural products can be broadly grouped into foods , fibers , fuels , and raw materials (such as rubber ). Food classes include cereals ( grains ), vegetables , fruits , cooking oils , meat , milk , eggs , and fungi . Global agricultural production amounts to approximately 11 billion tonnes of food, 32 million tonnes of natural fibers and 4 billion m of wood. However, around 14% of

14025-668: The domestication of squash (Cucurbita) and other plants. Coca was domesticated in the Andes, as were the peanut, tomato, tobacco, and pineapple . Cotton was domesticated in Peru by 3,600 BC. Animals including llamas , alpacas , and guinea pigs were domesticated there. In North America , the indigenous people of the East domesticated crops such as sunflower , tobacco, squash and Chenopodium . Wild foods including wild rice and maple sugar were harvested. The domesticated strawberry

14190-440: The economic system is dependant upon the environment. In this case, the circular flow of income diagram may be replaced by a more complex flow diagram reflecting the input of solar energy, which sustains natural inputs and environmental services which are then used as units of production . Once consumed, natural inputs pass out of the economy as pollution and waste. The potential of an environment to provide services and materials

14355-529: The economy , i.e. limiting the effects of the business cycle by conducting expansive policy when the economy is in a recession or contractive policy in the case of overheating . Structural policies may be labor market policies which aim to change the structural unemployment rate or policies which affect long-run propensities to save, invest, or engage in education or research and development. Central banks conduct monetary policy mainly by adjusting short-term interest rates . The actual method through which

14520-454: The economy is usually measured as gross domestic product (GDP). Adding net factor incomes from abroad to GDP produces gross national income (GNI), which measures total income of all residents in the economy. In most countries, the difference between GDP and GNI are modest so that GDP can approximately be treated as total income of all the inhabitants as well, but in some countries, e.g. countries with very large net foreign assets (or debt),

14685-436: The economy was sufficient to explain the Great Depression , and that aggregate demand oriented explanations were not necessary. Friedman also argued that monetary policy was more effective than fiscal policy; however, Friedman doubted the government's ability to "fine-tune" the economy with monetary policy. He generally favored a policy of steady growth in money supply instead of frequent intervention. Friedman also challenged

14850-463: The economy, could hardly generate the large short-run output fluctuations that we observe. In addition, there is strong empirical evidence that monetary policy does affect real economic activity, and the idea that technological regress can explain recent recessions seems implausible. Despite criticism of the realism in the RBC models, they have been very influential in economic methodology by providing

15015-601: The entire economy is called inflation . When prices decrease, there is deflation . Economists measure these changes in prices with price indexes . Inflation will increase when an economy becomes overheated and grows too quickly. Similarly, a declining economy can lead to decreasing inflation and even in some cases deflation. Central bankers conducting monetary policy usually have as a main priority to avoid too high inflation, typically by adjusting interest rates. High inflation as well as deflation can lead to increased uncertainty and other negative consequences, in particular when

15180-466: The exogenous technological improvement used to explain growth in Solow's model. Another type of endogenous growth models endogenized the process of technological progress by modelling research and development activities by profit-maximizing firms explicitly within the growth models themselves. Since the 1970s, various environmental problems have been integrated into growth and other macroeconomic models to study their implications more thoroughly. During

15345-590: The failure to do so was due in part to sectional jealousies and constitutional scruples about such expenditures. Clay's plan became the leading tenet of the National Republican Party of John Quincy Adams and the Whig Party of himself and Daniel Webster. The "American System" was supported by New England and the Mid-Atlantic, which had a large manufacturing base. It protected their new factories from foreign competition. The South opposed

15510-405: The fall in market income. There is a general consensus that both monetary and fiscal instruments may affect demand and activity in the short run (i.e. over the business cycle). Economists usually favor monetary over fiscal policy to mitigate moderate fluctuations, however, because it has two major advantages. First, monetary policy is generally implemented by independent central banks instead of

15675-432: The farm itself, entire families can be at risk for injuries, illness, and death. Ages 0–6 may be an especially vulnerable population in agriculture; common causes of fatal injuries among young farm workers include drowning, machinery and motor accidents, including with all-terrain vehicles. The International Labor Organization considers agriculture "one of the most hazardous of all economic sectors". It estimates that

15840-729: The federal government undertaken in the period prior to the Civil War gave shape and substance to the American School. These programs included the establishment of the Patent Office in 1802, the creation of the Survey of the Coast (later renamed the United States Coast Survey and then the United States Coast and Geodetic Survey ) in 1807 and other measures to improve river and harbor navigation created by

16005-431: The first 18 months of his term. The final bastion of Jacksonian opposition to Clay's American System existed in relation to the use of government funds to conduct internal improvements. The Jacksonian presidents feared that government funding of such projects as roads and canals exceeded the mandate of the federal government and should not be undertaken. Van Buren believed very strongly that "[t]he central government, unlike

16170-478: The first examples of general equilibrium models based on microeconomic foundations and a specification of underlying shocks that aim to explain the main features of macroeconomic fluctuations, not only qualitatively, but also quantitatively. In this way, they were forerunners of the later DSGE models. New Keynesian economists responded to the new classical school by adopting rational expectations and focusing on developing micro-founded models that were immune to

16335-430: The forests of New Guinea have few food plants, early humans may have used "selective burning" to increase the productivity of the wild karuka fruit trees to support the hunter-gatherer way of life. The Gunditjmara and other groups developed eel farming and fish trapping systems from some 5,000 years ago. There is evidence of 'intensification' across the whole continent over that period. In two regions of Australia,

16500-429: The government takes on spending projects, it limits the amount of resources available for the private sector to use. Full crowding out occurs in the extreme case when government spending simply replaces private sector output instead of adding additional output to the economy. A crowding out effect may also occur if government spending should lead to higher interest rates, which would limit investment. Some fiscal policy

16665-414: The great end of establishing a uniform and sound currency". He further attacked the proponents of renewing the bank's charter, scathingly referring to the "stockholders" seeking a renewal of their "privileges". This rhetoric, portraying the supporters of the bank as privileged individuals, and claiming the opposition of "a large portion of our fellow-citizens" crystallizes Jackson's majoritarian distaste for

16830-422: The greater use of pesticides and fertilizers. Multiple cropping , in which several crops are grown sequentially in one year, and intercropping , when several crops are grown at the same time, are other kinds of annual cropping systems known as polycultures . In subtropical and arid environments, the timing and extent of agriculture may be limited by rainfall, either not allowing multiple annual crops in

16995-498: The inflation (or deflation) is unexpected. Consequently, most central banks aim for a positive, but stable and not very high inflation level. Changes in the inflation level may be the result of several factors. Too much aggregate demand in the economy will cause an overheating , raising inflation rates via the Phillips curve because of a tight labor market leading to large wage increases which will be transmitted to increases in

17160-441: The input of nutrients (fertilizer or manure ) and some manual pest control . Annual cultivation is the next phase of intensity in which there is no fallow period. This requires even greater nutrient and pest control inputs. Further industrialization led to the use of monocultures , when one cultivar is planted on a large acreage. Because of the low biodiversity , nutrient use is uniform and pests tend to build up, necessitating

17325-538: The interest rate is changed differs from central bank to central bank, but typically the implementation happens either directly via administratively changing the central bank's own offered interest rates or indirectly via open market operations . Via the monetary transmission mechanism , interest rate changes affect investment , consumption , asset prices like stock prices and house prices , and through exchange rate reactions export and import . In this way aggregate demand , employment and ultimately inflation

17490-466: The late 1990s, economists had reached a rough consensus. The market imperfections and nominal rigidities of new Keynesian theory was combined with rational expectations and the RBC methodology to produce a new and popular type of models called dynamic stochastic general equilibrium (DSGE) models. The fusion of elements from different schools of thought has been dubbed the new neoclassical synthesis . These models are now used by many central banks and are

17655-412: The lower yield associated with organic farming and its impact on global food security . Recent mainstream technological developments include genetically modified food . By 2015, the agricultural output of China was the largest in the world, followed by the European Union, India and the United States. Economists measure the total factor productivity of agriculture, according to which agriculture in

17820-417: The macro economy. RBC models were created by combining fundamental equations from neo-classical microeconomics to make quantitative models. In order to generate macroeconomic fluctuations, RBC models explained recessions and unemployment with changes in technology instead of changes in the markets for goods or money. Critics of RBC models argue that technological changes, which typically diffuse slowly throughout

17985-434: The macro/micro divide is institutionalized in the field of economics. Most economists identify as either macro- or micro-economists. Macroeconomics is traditionally divided into topics along different time frames: the analysis of short-term fluctuations over the business cycle , the determination of structural levels of variables like inflation and unemployment in the medium (i.e. unaffected by short-term deviations) term, and

18150-412: The majority govern". This ideology governed Jackson's actions throughout his presidency, and heavily influenced his protégé Martin van Buren as well as the final Jacksonian president, James K. Polk. This commitment to the majority and to the voiceless came in direct conflict with many elements of the American System. The Jacksonian presidents saw key tenets of the American System, including the support for

18315-458: The money market is modeled as giving equilibrium between the money supply and liquidity preference (equivalent to money demand). Agriculture Agriculture encompasses crop and livestock production, aquaculture , and forestry for food and non-food products. Agriculture was a key factor in the rise of sedentary human civilization , whereby farming of domesticated species created food surpluses that enabled people to live in

18480-420: The new classical real business cycle models , microfounded computable general equilibrium (CGE) models used for medium-term (structural) questions like international trade or tax reforms, Dynamic stochastic general equilibrium (DSGE) models used to analyze business cycles, not least in many central banks, or integrated assessment models like DICE . The IS–LM model, invented by John Hicks in 1936, gives

18645-487: The normal tariff under this) through reciprocity , choosing to subsidize industry as a replacement. At the close of World War II, the United States now dominant in manufacturing with little competition, the era of free trade had begun. In 1973, when the "Kennedy" Round concluded under President Richard Nixon , who cut U.S. tariffs to all time lows, the New Deal orientation towards reciprocity and subsidy ended, which moved

18810-630: The numerous public works projects of the Works Progress Administration (WPA) as well as the creation of the Tennessee Valley Authority (TVA); brought massive reform to the banking system of the Federal Reserve while investing in various ways in industry to stimulate production and control speculation; but abandoned protective tariffs while embracing moderate tariff protection (revenue based 20–30%

18975-564: The oil crises of the 1970s when scarcity problems of natural resources were high on the public agenda, economists like Joseph Stiglitz and Robert Solow introduced non-renewable resources into neoclassical growth models to study the possibilities of maintaining growth in living standards under these conditions. More recently, the issue of climate change and the possibilities of a sustainable development are examined in so-called integrated assessment models , pioneered by William Nordhaus . In macroeconomic models in environmental economics ,

19140-606: The only usable tool for such countries. Macroeconomic teaching, research and informed debates normally evolve around formal ( diagrammatic or equational ) macroeconomic models to clarify assumptions and show their consequences in a precise way. Models include simple theoretical models, often containing only a few equations, used in teaching and research to highlight key basic principles, and larger applied quantitative models used by e.g. governments, central banks, think tanks and international organisations to predict effects of changes in economic policy or other exogenous factors or as

19305-480: The original simple Phillips curve relationship between inflation and unemployment. Friedman and Edmund Phelps (who was not a monetarist) proposed an "augmented" version of the Phillips curve that excluded the possibility of a stable, long-run tradeoff between inflation and unemployment. When the oil shocks of the 1970s created a high unemployment and high inflation, Friedman and Phelps were vindicated. Monetarism

19470-569: The overland pioneers that followed (see, for example, the career of Brigadier General Randolph B. Marcy ), the assignment of Army Engineer officers to assist or direct the surveying and construction of the early railroads and canals, and the establishment of the First Bank of the United States and Second Bank of the United States as well as various protectionist measures such as the Tariff of 1828 . Leading proponents were economists Friedrich List (1789–1846) and Henry Carey (1793–1879). List

19635-437: The philosophy and culture of the farmer. Shifting cultivation (or slash and burn ) is a system in which forests are burnt, releasing nutrients to support cultivation of annual and then perennial crops for a period of several years. Then the plot is left fallow to regrow forest, and the farmer moves to a new plot, returning after many more years (10–20). This fallow period is shortened if population density grows, requiring

19800-465: The political institutions that control fiscal policy. Independent central banks are less likely to be subject to political pressures for overly expansionary policies. Second, monetary policy may suffer shorter inside lags and outside lags than fiscal policy. There are some exceptions, however: Firstly, in the case of a major shock, monetary stabilization policy may not be sufficient and should be supplemented by active fiscal stabilization. Secondly, in

19965-414: The poorest countries, where alternative livelihoods are not available, and they maintain the intensity of their work in conditions of climate-induced weather shocks and in situations of conflict. Women are less likely to participate as entrepreneurs and independent farmers and are engaged in the production of less lucrative crops. The gender gap in land productivity between female- and male managed farms of

20130-449: The price level are directly caused by changes in the money supply . Whereas there is empirical evidence that there is a long-run positive correlation between the growth rate of the money stock and the rate of inflation, the quantity theory has proved unreliable in the short- and medium-run time horizon relevant to monetary policy and is abandoned as a practical guideline by most central banks today. Open economy macroeconomics deals with

20295-518: The price of the products of employers. Too little aggregate demand will have the opposite effect of creating more unemployment and lower wages, thereby decreasing inflation. Aggregate supply shocks will also affect inflation, e.g. the oil crises of the 1970s and the 2021–2023 global energy crisis . Changes in inflation may also impact the formation of inflation expectations , creating a self-fulfilling inflationary or deflationary spiral. The monetarist quantity theory of money holds that changes in

20460-440: The production of fish for human consumption in confined operations, is one of the fastest growing sectors of food production, growing at an average of 9% a year between 1975 and 2007. During the second half of the 20th century, producers using selective breeding focused on creating livestock breeds and crossbreeds that increased production, while mostly disregarding the need to preserve genetic diversity . This trend has led to

20625-438: The race of man. [It is said] that protection is immoral ... Why, if protection builds up and elevates 63,000,000 [the U.S. population] of people, the influence of those 63,000,000 of people elevates the rest of the world. We cannot take a step in the pathway of progress without benefitting mankind everywhere. Well, they say, 'Buy where you can buy the cheapest'...Of course, that applies to labor as to everything else. Let me give you

20790-451: The renewal bill through Congress, despite expecting Jackson's inevitable veto. Clay hoped that when Jackson vetoed the bill, it would more clearly differentiate the two sides of the debate which Clay then sought to use to his advantage in running for president. With battle lines set, Jackson's majoritarian opposition to the Second Bank of the United States helped him be elected to a second term. The question of protective tariffs championed by

20955-455: The rest of the world to his level; the other to raising the standard of man throughout the world to our level. One looks to pauperism, ignorance, depopulation, and barbarism; the other to increasing wealth, comfort, intelligence, combination of action, and civilization. One looks towards universal war; the other towards universal peace. One is the English system; the other we may be proud to call

21120-477: The result of conflict, climate extremes and variability and economic swings. It can also be caused by a country's structural characteristics such as income status and natural resource endowments as well as its political economy. Pesticide use in agriculture went up 62% between 2000 and 2021, with the Americas accounting for half the use in 2021. The International Fund for Agricultural Development posits that an increase in smallholder agriculture may be part of

21285-874: The role that individuals and organizations engaged in agriculture should play. In the United States, agriculture has been identified by the National Institute for Occupational Safety and Health as a priority industry sector in the National Occupational Research Agenda to identify and provide intervention strategies for occupational health and safety issues. In the European Union, the European Agency for Safety and Health at Work has issued guidelines on implementing health and safety directives in agriculture, livestock farming, horticulture, and forestry. The Agricultural Safety and Health Council of America (ASHCA) also holds

21450-478: The salaried agricultural workforce in Spain, Italy, Greece and Portugal in 2013. In the United States of America, more than half of all hired farmworkers (roughly 450,000 workers) were immigrants in 2019, although the number of new immigrants arriving in the country to work in agriculture has fallen by 75 percent in recent years and rising wages indicate this has led to a major labor shortage on U.S. farms. Around

21615-416: The same predictions even as the underlying model generating the data changed. He advocated models based on fundamental economic theory (i.e. having an explicit microeconomic foundation ) that would, in principle, be structurally accurate as economies changed. Following Lucas's critique, new classical economists, led by Edward C. Prescott and Finn E. Kydland , created real business cycle (RBC) models of

21780-439: The same size is 24 percent. On average, women earn 18.4 percent less than men in wage employment in agriculture; this means that women receive 82 cents for every dollar earned by men. Progress has been slow in closing gaps in women's access to irrigation and in ownership of livestock, too. Women in agriculture still have significantly less access than men to inputs, including improved seeds, fertilizers and mechanized equipment. On

21945-494: The savings rate leads to a temporary increase as the economy creates more capital, which adds to output. However, eventually the depreciation rate will limit the expansion of capital: savings will be used up replacing depreciated capital, and no savings will remain to pay for an additional expansion in capital. Solow's model suggests that economic growth in terms of output per capita depends solely on technological advances that enhance productivity. The Solow model can be interpreted as

22110-488: The solution to concerns about food prices and overall food security , given the favorable experience of Vietnam. Agriculture provides about one-quarter of all global employment, more than half in sub-Saharan Africa and almost 60 percent in low-income countries. As countries develop, other jobs have historically pulled workers away from agriculture, and labor-saving innovations increase agricultural productivity by reducing labor requirements per unit of output. Over time,

22275-560: The special interest serving economic nationalism embodied in the American System. Jackson's Secretary of the Treasury Roger B. Taney effectively summed up Jackson's opposition to the Second Bank of the United States: ""It is a fixed principle of our political institutions to guard against the unnecessary accumulation of power over persons and property in any hands. And no hands are less worthy to be trusted with it than those of

22440-454: The states", had no obligation to provide relief or promote the general welfare. This stance kept faith with the tenets of Jeffersonian republicanism, notably its agrarianism and strict constructionism, to which van Buren was heir". As heir to the legacy of Van Buren and Jackson, Polk was similarly hostile to internal improvement programs, and used his presidential veto to prevent such projects from reaching fruition. An extra session of congress

22605-749: The study of long-term economic growth. It also studies the consequences of policies targeted at mitigating fluctuations like fiscal or monetary policy , using taxation and government expenditure or interest rates, respectively, and of policies that can affect living standards in the long term, e.g. by affecting growth rates. Macroeconomics as a separate field of research and study is generally recognized to start in 1936, when John Maynard Keynes published his The General Theory of Employment, Interest and Money , but its intellectual predecessors are much older. Since World War II, various macroeconomic schools of thought like Keynesians , monetarists , new classical and new Keynesian economists have made contributions to

22770-483: The substantive opposition to the American System. The first and most well-known battle between Jacksonians and Clay focused on the struggle over renewing the charter of the Second Bank of the United States. In Andrew Jackson's first annual message to Congress in 1829, he declared that "[b]oth the constitutionality and the expediency of the law creating this bank are well questioned by a large portion of our fellow-citizens, and it must be admitted by all that it has failed in

22935-490: The successive regimes of Colbert 's France and Elizabeth I 's England , while rejecting the harsher aspects of mercantilism , such as seeking colonies for markets. As later defined by Senator Henry Clay who became known as the Father of the American System because of his impassioned support thereof, the American System was to unify the nation north to south, east to west, and city to farmer. Frank Bourgin's 1989 study of

23100-400: The synthesis of ammonium nitrate fertilizer on an industrial scale, greatly increasing crop yields and sustaining a further increase in global population. Modern agriculture has raised or encountered ecological, political, and economic issues including water pollution , biofuels , genetically modified organisms , tariffs and farm subsidies , leading to alternative approaches such as

23265-414: The synthesis view of the macroeconomy. Economists like Paul Samuelson , Franco Modigliani , James Tobin , and Robert Solow developed formal Keynesian models and contributed formal theories of consumption, investment, and money demand that fleshed out the Keynesian framework. Milton Friedman updated the quantity theory of money to include a role for money demand. He argued that the role of money in

23430-474: The systems of Adam Smith or Karl Marx : In a passage from his book, The Harmony of Interests , Carey wrote concerning the difference between the American System and British System of economics: Two systems are before the world; ... One looks to increasing the necessity for commerce; the other to increasing the power to maintain it. One looks to underworking the Hindoo ;[ sic ], and sinking

23595-683: The tariff policy of this system of economics. This continued until 1913 when the administration of Woodrow Wilson initiated his The New Freedom policy that replaced the National Bank System with the Federal Reserve System, and lowered tariffs to revenue-only levels with the Underwood Tariff. The election of Warren G. Harding and the Republican Party in 1920 represented a partial return to

23760-679: The transition from hunter-gatherer to agricultural societies indicate an initial period of intensification and increasing sedentism ; examples are the Natufian culture in the Levant , and the Early Chinese Neolithic in China. Then, wild stands that had previously been harvested started to be planted, and gradually came to be domesticated. In Eurasia, the Sumerians started to live in villages from about 8,000 BC, relying on

23925-505: The two most general fields in economics. The focus of macroeconomics is often on a country (or larger entities like the whole world) and how its markets interact to produce large-scale phenomena that economists refer to as aggregate variables. In microeconomics the focus of analysis is often a single market, such as whether changes in supply or demand are to blame for price increases in the oil and automotive sectors. From introductory classes in "principles of economics" through doctoral studies,

24090-419: The underpinnings of aggregate demand (itself discussed below). It answers the question "At any given price level, what is the quantity of goods demanded?" The graphic model shows combinations of interest rates and output that ensure equilibrium in both the goods and money markets under the model's assumptions. The goods market is modeled as giving equality between investment and public and private saving (IS), and

24255-531: The votes necessary to pass the bill in Congress, it enraged Jackson. Jackson saw this manipulation as clear evidence of the penchant of a national bank to serve private, non-majoritarian interests. Henry Clay's American System supported the necessity for central institutions to "take an activist role in shaping and advancing the nation's economic development". The bank thus fit well into Clay's worldview, and he took advantage of Biddle's manipulation in order to pass

24420-671: The wild aurochs in the areas of modern Turkey and Pakistan some 10,500 years ago. Pig production emerged in Eurasia, including Europe, East Asia and Southwest Asia, where wild boar were first domesticated about 10,500 years ago. In the Andes of South America, the potato was domesticated between 10,000 and 7,000 years ago, along with beans, coca , llamas , alpacas , and guinea pigs . Sugarcane and some root vegetables were domesticated in New Guinea around 9,000 years ago. Sorghum

24585-402: The word "macroeconomics" itself in a journal title in 1946. but naturally several of the themes which are central to macroeconomic research had been discussed by thoughtful economists and other writers long before 1936. In particular, macroeconomic questions before Keynes were the topic of the two long-standing traditions of business cycle theory and monetary theory . William Stanley Jevons

24750-781: The world's agricultural land is seriously degraded. In recent years there has been a backlash against the environmental effects of conventional agriculture, resulting in the organic , regenerative , and sustainable agriculture movements. One of the major forces behind this movement has been the European Union , which first certified organic food in 1991 and began reform of its Common Agricultural Policy (CAP) in 2005 to phase out commodity-linked farm subsidies, also known as decoupling . The growth of organic farming has renewed research in alternative technologies such as integrated pest management , selective breeding, and controlled-environment agriculture . There are concerns about

24915-664: The world's food is lost from production before reaching the retail level. Modern agronomy , plant breeding , agrochemicals such as pesticides and fertilizers , and technological developments have sharply increased crop yields , but also contributed to ecological and environmental damage . Selective breeding and modern practices in animal husbandry have similarly increased the output of meat, but have raised concerns about animal welfare and environmental damage. Environmental issues include contributions to climate change , depletion of aquifers , deforestation , antibiotic resistance , and other agricultural pollution . Agriculture

25080-523: The world's food, but large farms are prevalent. The largest 1% of farms in the world are greater than 50 hectares (120 acres) and operate more than 70% of the world's farmland. Nearly 40% of agricultural land is found on farms larger than 1,000 hectares (2,500 acres). However, five of every six farms in the world consist of fewer than 2 hectares (4.9 acres), and take up only around 12% of all agricultural land. Farms and farming greatly influence rural economics and greatly shape rural society , affecting both

25245-485: The world, women make up a large share of the population employed in agriculture. This share is growing in all developing regions except East and Southeast Asia where women already make up about 50 percent of the agricultural workforce. Women make up 47 percent of the agricultural workforce in sub-Saharan Africa, a rate that has not changed significantly in the past few decades. However, the Food and Agriculture Organization of

25410-621: The world. Production is listed in millions of metric tons, based on FAO estimates. Animal husbandry is the breeding and raising of animals for meat, milk, eggs , or wool , and for work and transport. Working animals , including horses, mules , oxen , water buffalo , camels, llamas, alpacas, donkeys, and dogs, have for centuries been used to help cultivate fields, harvest crops, wrangle other animals, and transport farm products to buyers. Livestock production systems can be defined based on feed source, as grassland-based, mixed, and landless. As of 2010 , 30% of Earth's ice- and water-free area

25575-434: Was a leading 19th Century German and American economist who called it the "National System" and developed it further in his book The National System of Political Economy Carey called this a Harmony of Interests in his book by the same name, a harmony between labor and management, and as well a harmony between agriculture , manufacturing , and merchants . The name "American System" was coined by Clay to distinguish it, as

25740-482: Was being waged, and on February 25, 1862, the Legal Tender Act empowered the secretary of the treasury to issue paper money ('greenbacks') that were not immediately redeemable in gold or silver. The United States continued these policies throughout the later half of the 19th century. President Ulysses S Grant acknowledged the perceived efficacy of tariff protection in reference to Britain's success during

25905-447: Was called in the summer of 1841 for a restoration of the American system. When the tariff question came up again in 1842, the compromise of 1833 was overthrown, and the protective system placed in the ascendant. Due to the dominance of the then Democratic Party of Van Buren , Polk , and Buchanan the American School was not embraced as the economic philosophy of the United States until the election of Abraham Lincoln in 1860, who, with

26070-640: Was domesticated by the Mayo Chinchipe of the upper Amazon around 3,000 BC. The turkey was probably domesticated in Mexico or the American Southwest. The Aztecs developed irrigation systems, formed terraced hillsides, fertilized their soil, and developed chinampas or artificial islands. The Mayas used extensive canal and raised field systems to farm swampland from 400 BC. In South America agriculture may have begun about 9000 BC with

26235-560: Was domesticated in the Sahel region of Africa by 7,000 years ago. Cotton was domesticated in Peru by 5,600 years ago, and was independently domesticated in Eurasia. In Mesoamerica , wild teosinte was bred into maize (corn) from 10,000 to 6,000 years ago. The horse was domesticated in the Eurasian Steppes around 3500 BC. Scholars have offered multiple hypotheses to explain the historical origins of agriculture. Studies of

26400-468: Was one of the pioneers of the first tradition, whereas the quantity theory of money , labelled the oldest surviving theory in economics, as an example of the second was described already in the 16th century by Martín de Azpilcueta and later discussed by personalities like John Locke and David Hume . In the first decades of the 20th century monetary theory was dominated by the eminent economists Alfred Marshall , Knut Wicksell and Irving Fisher . When

26565-416: Was particularly influential in the early 1980s, but fell out of favor when central banks found the results disappointing when trying to target money supply instead of interest rates as monetarists recommended, concluding that the relationships between money growth, inflation and real GDP growth are too unstable to be useful in practical monetary policy making. New classical macroeconomics further challenged

26730-537: Was seen as an essential means of promoting the general welfare and making the economy of the United States strong enough for them to determine their own destiny. Jefferson and Madison strongly opposed Hamilton's program, but were forced to implement it by the exigencies of the embargo, begun in December 1807 under the Non-Intercourse Act, and the War of 1812 against Britain. A number of programs by

26895-459: Was the medium of exchange. As early as 1837, John C. Calhoun called for a debt-free currency issued and controlled by the government. Such a policy would reduce the profits of the banks, and in response to this, the banking institutions threw their support behind the British school, espousing the gold standard throughout the 1800s. In the Civil War, a shortage of specie led to the issue of such

27060-411: Was the name given by Henry Clay in a speech before Congress advocating an economic program based on the economic philosophy derived from Alexander Hamilton's economic theories . Clay's policies called for a high tariff to support internal improvements such as road-building, and a national bank to encourage productive enterprise and to form a national currency as Hamilton had advocated as Secretary of

27225-584: Was used for producing livestock, with the sector employing approximately 1.3 billion people. Between the 1960s and the 2000s, there was a significant increase in livestock production, both by numbers and by carcass weight, especially among beef, pigs and chickens, the latter of which had production increased by almost a factor of 10. Non-meat animals, such as milk cows and egg-producing chickens, also showed significant production increases. Global cattle, sheep and goat populations are expected to continue to increase sharply through 2050. Aquaculture or fish farming,

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