Yuriko Smith Professor Sealey ECO 2023 09/27/2017
John Maynard Keynes: One of the Most Influential Economists of the 20th Century A Look into His Revolutionary Theories
When people think of the economists from the 20th century, names like Joseph Schumpeter, or Fredrich Hayek come to mind. He was born and raised in Cambridge, England, to a middle-class family. Though he was not brought up in poverty, he experienced when the economy crashed during the Great Depression, which made his passion for economics even stronger. The late economist John Maynard Keynes works was the most controversial and influential even in present-day economics. He is one of the pioneers of modern macroeconomic theory. He made many contributions to economic thought from one of his exceptional works called, "The General Theory on Employment, Interest, and Money". He proposed notions and viewpoints of wage expectations, the government's role in the economy and so on. Keynes ideas are also related to, "Keynesian Economics", which is …show more content…
He was determined to find a solution to stabilize the economy during financial turmoil. Keynes had a theory regarding inflation. He believed during an economic crisis, the only solution would be to persuade the notion of expending money and prevent saving money. Keynes also thought that prices and wages react slowly to alterations in supply and demand, which would cause shortages and surpluses, especially in labor. While,the majority of economists concur that quantity of theory of money, holds in the long haul, Keynes was worried about the short-term aspect of it. According to Imf.org, " Keynes argued that inadequate overall demand could lead to prolonged periods of high unemployment. An economy's output of goods and services is the sum of four components: consumption, investment, government purchases, and net exports. Any increase in demand has to come from one of these four components". During a recession, this could cause the government to
John Maynard Keynes: One of the Most Influential Economists of the 20th Century A Look into His Revolutionary Theories
When people think of the economists from the 20th century, names like Joseph Schumpeter, or Fredrich Hayek come to mind. He was born and raised in Cambridge, England, to a middle-class family. Though he was not brought up in poverty, he experienced when the economy crashed during the Great Depression, which made his passion for economics even stronger. The late economist John Maynard Keynes works was the most controversial and influential even in present-day economics. He is one of the pioneers of modern macroeconomic theory. He made many contributions to economic thought from one of his exceptional works called, "The General Theory on Employment, Interest, and Money". He proposed notions and viewpoints of wage expectations, the government's role in the economy and so on. Keynes ideas are also related to, "Keynesian Economics", which is …show more content…
He was determined to find a solution to stabilize the economy during financial turmoil. Keynes had a theory regarding inflation. He believed during an economic crisis, the only solution would be to persuade the notion of expending money and prevent saving money. Keynes also thought that prices and wages react slowly to alterations in supply and demand, which would cause shortages and surpluses, especially in labor. While,the majority of economists concur that quantity of theory of money, holds in the long haul, Keynes was worried about the short-term aspect of it. According to Imf.org, " Keynes argued that inadequate overall demand could lead to prolonged periods of high unemployment. An economy's output of goods and services is the sum of four components: consumption, investment, government purchases, and net exports. Any increase in demand has to come from one of these four components". During a recession, this could cause the government to