Editing Neoclassical economics (section)

===Cambridge and Lausanne school===
[[Schools of economic thought#Neoclassical economics|Cambridge]] and [[Lausanne School]] of economics form the basis of neoclassical economics. Until the 1930s, the evolution of neoclassical economics was determined by the Cambridge school and was based on the [[marginal equilibrium theory]]. At the beginning of the 1930s, the Lausanne [[general equilibrium theory]] became the general basis of neoclassical economics and the marginal equilibrium theory was understood as its simplification.<ref name="ndk.cz">{{Cite web |title=Národní digitální knihovna |url=https://ndk.cz/uuid/uuid:1c8026b0-5fc7-11e6-b155-001018b5eb5c |access-date=2024-11-29 |website=ndk.cz}}</ref>

The thinking of the Cambridge school continued in the steps of classical political economics and its traditions but was based on the new approach that originated from the marginalist revolution. Its founder was [[Alfred Marshall]], and among the main representatives were [[Arthur Cecil Pigou]], [[Ralph George Hawtrey]] and [[Dennis Holme Robertson]]. Pigou worked on the theory of [[welfare economics]] and the [[quantity theory of money]]. Hawtrey and Robertson developed the Cambridge cash balance approach to [[theory of money]] and influenced the [[trade cycle]] theory. Until the 1930s, [[John Maynard Keynes]] was also influencing the theoretical concepts of the Cambridge school. The key characteristic of the Cambridge school was its instrumental approach to the economy – the role of the theoretical economist is first to define theoretical instruments of economic analysis and only just then apply them to real economic problems.<ref>{{Cite web |title=Národní digitální knihovna |url=https://ndk.cz/uuid/uuid:1c8026b0-5fc7-11e6-b155-001018b5eb5c |access-date=2024-11-29 |website=ndk.cz}}</ref>

The main representatives of the Lausanne school of economic thought were [[Léon Walras]], [[Vilfredo Pareto]] and [[Enrico Barone]]. The school became famous for developing the [[general equilibrium theory]]. In the contemporary economy, the general equilibrium theory is the methodologic basis of [[mainstream economics]] in the form of [[New classical macroeconomics]] and [[New Keynesian macroeconomics]].<ref name="ndk.cz"/>