Chicago School

Part of the series where I am trying to learn more about each of the major economic schools of thought.

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The Chicago School of Economics is a neoclassical school of economic thought associated with the work of the faculty at the University of Chicago, some of whom have constructed and popularized its principles. Milton Friedman and George Stigler are considered the leading scholars of the Chicago School.

Milton Friedman, George Stigler, and Aaron Director

Chicago macroeconomic theory rejected Keynesianism in favor of monetarism until the mid-1970s, when it turned to new classical macroeconomics heavily based on the concept of rational expectations.
New Keynesian economics was developed as a response to new classical economics, electing to incorporate the insight of rational expectations without giving up the traditional Keynesian focus on imperfect competition and sticky wages.
Chicago economists have also left their intellectual influence in other fields, notably in pioneering public choice theory and law and economics, which have led to revolutionary changes in the study of political science and law.
The term was coined in the 1950s to refer to economists teaching in the Economics department at the University of Chicago, and closely related academics areas at the university.
The Chicago economists met together in frequent intense discussions that helped group outlook on economic issues based on price theory. The 1950s saw the height of popularity of the Keynesian school of economics, so the members of the University of Chicago were considered Heterodox.