New system of school-neo-institutional school

New system of school(neo-institutional school):

New system of school (neo-institutional school) is the major schools of contemporary Western economics one. New system of school was formed in the 1950s, 60 years later there is a greater development of the new system is the predecessor of the school of the late 19th century early 20th century to Veblen, Kangmeng Si, Mitchell represented the school system. New system, the main representative of the school, in the United States Galbraith, Boulding, Myrdal in Sweden.

New system of school (neo-institutional school)- Introduction
This new system of school school school is known as the new system, because it inherits the one hand, the traditional school system to system analysis, structural analysis as advertised, and advocated the capitalist ownership of production based on the existing reform; another after World War II, according to another aspect of the new political and economic conditions than in the past the school system pay more attention to the reality of capitalism, criticism of the shortcomings of capitalism and made more specific policy recommendations.

New system of school policy objectives and values ​​in the issue of the scope should be much broader. The new system is in the Keynesian school of bourgeois economics has become the new orthodoxy, but it can not explain the capitalist socio-economic problems of a variety of reasons, and offered no measures to address these issues in the case of capitalist society analysis and put forward arguments. This is a new system of school system is different from the last school of the new features.

The modern school system is in the old system, school (30 years of the 19th century) based on the generated. As long history of theoretical development, coupled with the school system with a unique structure different from the theory of economics, research methods, so it is worth people attach great importance to the economics school. Especially in recent years, economists Youyi modern school system method of historical analysis, the theory of institutional change of property rights, so that the school is still the Western economic circles and the Chinese economy as a school keen to study school.

New system of school( neo-institutional school)- representative
The modern school system or school of economists, the new system has a theory, Galbraith in many details there are differences, not yet formed a consensus recognized representative. However, the new system of school Galbraith is the most important representatives, then there is no doubt. British "Economist" magazine pointed out: "the most famous of the school system figures, is Galbraith Professor." In addition, there is the U.S. package Fielding, Haier Buluo Na, Walder and so on. Swedish economists Myrdal holds in many ways similar to the argument with the new system school, so it was included in the new system within the school representative. Their basic characteristics, the system school of economists are using the system analysis or structural analysis shows that socio-economic reality and its development trend, and they have the status of the capitalist system with the objective of exposing contradictions, from the structure proposed aspects of reform ideas or programs. Among these, Galbraith's theory represents the trend of new institutional economics theory.

Galbraith is a well-known contemporary American economist, is the most important new system of school representatives. He graduated from the Ontario Agricultural College in 1931 after graduation to the United States. Former Harvard lecturer, associate professor at Princeton University, Harvard University. 1972, elected to the American Economics Association.

Galbraith was out a lot, mainly "American Capitalism: The concept of power to compete," "a theory of price control", "crash: 1929" and so on. Many of his writings so far in Western economists and government decisions have a strong influence.

New system of school (neo-institutional school)- the formation ofAmerican Keynesian economist Seth Field. Mark depicts the origin of new system of school, he believes, is rooted in the main school system Veblen's writings and other study by Veblen traditional product of the American intelligentsia. This means that the new system of school in the old school system developed on the basis of an important school of American economics, together with the old system of school or school system constitutes a system of doctrine. Doctrine has been generated from the system, it has been Western economic circles as "heresy." But the orthodox Keynesian position is threatened, it will be subject to the scholars of all ages.
Doctrine of the evolution of the system can be divided into two phases: the first 20 years of the 20th century, the stage of widespread system of doctrine. This is commonly referred to as the old school system, the founders of Veblen, the main representative there of Commons. Veblen's theory, which is characterized by contradictions. He believes that social life is based on material production, but only down to the social production process and underestimated the significance of forms of ownership, he attributed the contradictions of the capitalist system as a "machine operator" and "business" to one another. The capitalist system does not attempt to touch base with some kind of "reform" to solve social problems. The second stage, after the 1930s to the early post-war system of doctrine. During this period of institutional economists have Pele, m audio Adams, Ayers et al. Their theory is characterized by ideas from Veblen to Galbraith school of the new system linking the role of theory. For example, Bailey and Sri Lanka by a sound meter "Modern Corporation and Private Property" (1932), Ernie Els are with the "theory of economic progress" (1944) by Western economists believe that the old institutional economics of Veblen to the transition between the modern institutional economics of the operation or "bridge" or "connecting link." The third stage, the mid-1960s to the present school system, that is commonly referred to as the new system of school or Neo. They inherited the first two stages of the basic characteristics of economics, especially by Veblen's analysis of the impact of institutional factors, and from the meter sound Si, who learned the doctrine of separate ownership and management point of view. Proposed regulation of capitalist stagnation disease specific programs.
The old school system is an important characteristics: First, from the psychological habits of critique of capitalism. For example, Veblen's theory of the bourgeois economy had many criticism. Despite his criticism did not reveal the internal contradictions of the capitalist system, but not from a fundamental rejection of the capitalist system, but of modern capitalism, capitalist critique of corporate and financial oligarchy rule, there are many sharp, non-partisan , with a definite progress. Second, a certain historicism. In Veblen's writings, the study of the evolution of the system, including the history of economic cycles and crises of the actual material. However, their history with a non-scientific nature of Marxism, which means that the old school system is based on the theory of evolution in the methods of natural science as its theoretical starting point, with the customs and habits to explain the formation of economic and social system.
Although the school system in the mid 20's to 30 more prevalent in the United States, but from Keynes' Employment, Interest and Money "was published, until the 1960s, the Keynesian school system was very popular and appears relatively isolated. But times had changed 60 to - 70 years later, until today, the new system is very different school. This is mainly because since the 1960s, the major Western capitalist countries has shown the economic development of the new features: scientific and technological progress, production expansion and overproduction crisis, the development of co-existence of sharp social contradictions. This makes reform of the system calls rampant. However, the previous U.S. Keynesian theory of economics and lack of social, political, economic, cultural and other "system" of research, technological progress, the system ignores the role of evolution. Obviously, this has been the revolution of science and technology can not meet the new situation arising, the development of monopoly capitalism can not meet the new requirements. In this case, the school system become active again, inherited the tradition of the early school system, the so-called "new system of school" emerged, and became an influential Western economics school.

New system of school - theoretical developmentThe new system the old school system school system in the development of outstanding performance in the study of economics and research methods. The specific performance is as follows:
Structure of the system (1) new institutional economics "institutional structure" research. Changes in the economic system of Marxism is the system during the main study. However, this understanding of the issues, old and new school system has its obvious differences. Veblen attributed to the system in people produced on the basis of subjective mental ideas and habits, and use of psychological and spiritual domination by such a system to replace the general socio-economic system. In his view, ideas and habits are evolving, and thus the system also has a history of evolution, but the system is essentially the same, changing only the specific form of the system; only the evolution of social and economic development, without mutation. Visible, Veblen system is characterized by the study of economics: the social motives of the decision by the existing social group behavior and thinking; expose the reasons for the evolution of capitalism, examining the conditions of change and social development, economic, technological and social organization ( system) evolution.
New system of school inherited Veblen's basic idea, but they are not just like the old school system, as research by the people's mental activity and social habits determined by the evolution of the system, but more to analyze a single institutional structure itself function. In contrast, felt that the old school system pay attention to the angle from the vertical, to study the capitalist system of production, development and evolution, while the new system of school is to go from the horizontal cross-section analysis of the capitalist system structure is reasonable, and by the shortcomings of the capitalist economy of disclosure, that the capitalist system "structure" the importance of change. Galbraith asserted, the "structural" nature of the study than on the "growth" is more realistic number of studies. The target system than the "economic growth" goals are more important. Galbraith accused by the amount of Keynesian analysis, and respected its own system analysis and structural analysis. In the new system of school view, the system only objective factors outside of human instincts and the formation of mutual restraint and widespread habit. Reality of the "economic system" (private ownership, money, credit, business, profits, etc.), but is a psychological phenomenon (customs, habits, ethics, morality) is reflected and embodied in, play a decisive role in the legal relationship between people's psychological , and other non-economic factors.
It can be seen, the new system of school Galbraith object of study, the basic idea of ​​its look, not get rid of the old institutional economics of psychological factors, legal factors play a decisive role in economic life, the idea, but the interpretation of the study beyond the object itself the scope of traditional economic theory, close to sociology. From the face of it, the new system's focus from economics to study "the increase or decrease the amount of" transferred to the qualitative aspects of analysis, is worth noting here that in recent years, focusing on the quality Western economics has become the Western Economics Study prevailing problems at home. 1993 Nobel Prize winner, Douglas school system? North is its excellent theory of institutional change, which account for the upper hand of Western economics. Of course, you should see the system come from the doctrine of the economists in the idealist position, exaggerating the psychological factors, legal factors on the decisive role of social and economic life, to deny the existence of social development to man's will is not an objective law, so in essence the problem, the study of new institutional economics is wrong sail.
(2) new institutional economics "structural analysis". Opposed to the abstract interpretation of classical economics, law, advocates the evolution of the system, the overall methodology of Marxism is the system characteristics. But in the concrete application of this method on the new system, school to school more than the old system was more thorough.
In the new system of school view, neo-classical economics, the economics of the isolated individual as the starting point, this is unscientific. Because in their view, this approach for its balanced, static analysis to study the appearance of capitalist social relations, lost in capitalist society between the various economic interests conflict, does not accurately reflect reality. Galbraith believes that if the investigation of his reason, is that the neo-classical theory is divorced from real life, the economic reality as a static, unchanging. Therefore, the new system of school advocates a fundamental refresh of modern economic theory, the basis of the methodology. They believe that as technology continues to change, the capitalist economic system and social structure in a constantly evolving process. Capitalist system is a "dynamic process of cause and effect", so economics must study changes in the research process, rather than the static cross-sectional study. This means that the economic problems of the evolution of research methods to use.
It should be noted, also with the same old institutional economics to analyze the evolution of this economic problem, but they focus on the characteristics of the study the causes of the capitalist system, the attempt by a large number of historical data analysis, to explain the capital capitalist system is a reasonable system. However, the new system of school in the use of this evolving approach, they focus on research 60 years after the capitalist system, some specific analysis, to find a solution under the new historical conditions, the "structural reform" measures, instead of "neo-classical mode "and" balanced "concept.
And by the "structure" concept itself contains the meaning of the whole, therefore, in the evolution of structure analysis, is bound to use the holistic approach. Therefore, the new system of school in economic research, attention should be selected from those who as individuals and businesses, as a transfer to the evolution of the whole community. They stressed that the economics are talking about the whole, the economy is greater than the sum of the various components, so the research problem can not follow the opposite course. That is, first of all components and then come back the sum. For example, Galbraith's view of modern economic life is to emphasize the study as a whole, so that people can more clearly understand the economic operation of law.
The old school system is isolated against the classical school of analysis of individual behavior, but they did not explain the whole concept of the system to run the various relevant factors in the linkages and interactions. The new institutional economics analysis of the whole system is pay attention to the socio-economic development. This new institutional economics to understand how the "whole" concept has become the starting point for understanding the new institutional economics.
The new system called the whole school, not just an economic concept, it often can not be expressed with numbers, such as "the power of large companies" concept, both in economic power, but also includes political power, can not be used to measure the number. Therefore, they have taken against the orthodox economics quantitative analysis, and that focus on the analysis of the factors. Galbraith argued that capitalism in reality the problem is not occurring micro-economic analysis of macroeconomic analysis or other methods that can be specified. Macroeconomics only pay attention to adjust the level of aggregate demand, microeconomics only pay attention to cost and price formation, have ignored the issue of the institutional structure of society, that is precisely the distribution of power left. This new system of school analysis, it is usually summed it up as structural analysis or systems analysis.
(3) the new system school of normative economics research methods. The old school system advocated expanding the scope of study of economics, a holistic approach, which is the same they used to regulate the economy is characterized by the research methods are closely linked, which means that their overall study is to determine the value of closely related, from Adam? Smith to John Maynard Keynes, all the Orthodox tend to GDP growth in the size or speed as a criterion. GDP grew a good thing, otherwise, it is not good. The GDP is an economic value, it's just a social value in addition to other economic value, the value should also include social equality, ecological balance, it is the pursuit of leisure time and so on. Therefore, to achieve economic growth is one of the goals of social values, and to achieve this goal is to pay the appropriate price. For example, gross national product increased at the expense of people's leisure time for the price. Galbraith to achieve overall system goals include not only the economic value within the target, but also to achieve goals other than economic value, that is, the cultural value of Galbraith said. The pursuit of public goals of social economic and cultural values ​​that combine the "quality of life."
School in the new system of value judgments has in fact been Veblen also reflects the system of doctrine from the usual idea. Especially when in the 1960s, under the capitalist system more acute contradictions and complexity, and social value judgments but also social and economic life, political life can not be avoided, not to mention the economic theory of value judgments can not be ignored the method. Therefore, system economics, ethics, research methods contains becomes more prominent.
That the new system of school research methods has its own uniqueness. Their institutional structure of the overall analysis and value analysis shows that the field of economic and political factors interact in the system of economic development and social development. This approach not only in the Western world but also in China's economic reform has caused people's attention. However, the position of the idealist school of the new system recognizes only the nature, habits, customs, evolution, denies the revolutionary history of the development process leap. This is to be critical.