John Maynard Keynes

John Maynard Keynes (1883-1946) is a British economist who is the founder of Keynesian economics and the father of modern macroeconomics. He published his foundational book: “The General Theory of Employment, Interest and Money,” in 1936, years after the great depression of 1929. His theories were largely in contrast with classical economics and they impacted widely economists all over the world. Between the 1970s and the 1990s, after the appearance of new theories in economics, more economists reviewed the Keynesian economics, tried to revive them and even proposed some changes. James Tobin, Gregory Mankiw, and David Romer developed the foundations of New Keynesian economics also known as the Neo-Keynesian economics (Greenlaw, n.d). In the…

Adam Smith and John Maynard Keynes are two of the most famous and influential economists of all time. They both understood the fundamental economic insight that the key to economic prosperity is to keep money circulating. However, they are mainly thought of as being on opposing sides of most economic philosophies. It is essential to first analyze each economist for their own theories and practices. Then, to contrast the two in order to fully grasp their economic philosophies and to portray why…

Reflection on Analysis Government intervention is a crucial necessity to keeping an economy healthy. In the Businessweek article, “John Maynard Keynes Is the Economist the World Needs Now,” there is a great focus on the global economy’s downward spiral and the need to follow the teachings of John Maynard Keynes’ ideology on the government’s need to step in and help the economy stay afloat. In my analysis of that article, I strongly agreed with the author’s, Peter Coy; need to address a focus on…

John Maynard Keynes, a highly influential economist during the 1930s, developed Keynesian economics in an effort to decipher the reasons behind the Great Depression. (Investopedia, 2016) Keynes’s theory focuses on the short run and can be seen as a demand side theory that saw buying power as a way for a country to evade recession. (Stefano, 2012) In the following essay Keynes’s contribution to the economic theory will be discussed. During the Great Depression, it became evident that the…

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…

According to the British economist John Maynard Keynes, the Treaty of Versailles was nothing more than a ticking bomb threatening the European economy He predicted that this Treaty would result in “the dead season of our fortunes.” (The Economic Consequences of the Peace, p. 2) Keynes thought the Treaty proved that the Council of Four was shortsighted, and cared about nothing more than their own interest. Therefore, he foresaw that the Treaty would lead into an economic depression in Europe. We…

1. According to John Maynard Keynes, what is the cause of economic downturns and what is his prescription for them? Economic downturns according to John Maynard Keynes are caused by insufficient aggregate demand. The total demand of goods and services goes down, meaning the reduction in goods and service consumption, impacts negatively on production and employment matters. Falling income and aggregate demand are the consequences of insufficient demand. Saving is not good for the economy because…

Our text used the work of David Ricardo to expand on the classic thought. As I studied the different ideas I learned that he is most famous for his theory of comparative advantage. While this isn 't what this lesson is about, I find it interesting that our push toward globalization is similar to some of his ideas. Keynesian economics was developed by John Maynard Keynes. He wrote the book, "The General Theory of Employment, interest and Money" in 1936. At this time, the world had been…

John Maynard Keynes is reflected as one of the prime economists of all time. Keynes was born in Cambridge, England. He was raised in life full of academic achievement. John Neville Keynes, his father, was a well-known economist and registrar at Cambridge University. His mother, Florence Ada Keynes, was a writer and an advocate for social welfare. She became the first female mayor of Cambridge. From 1897 to 1902, Keynes attended Eton, and he later entered King’s College on scholarship. “The…

In this paper I will summarize the key developments in macroeconomics history. In particular I will discuss the similarities and differences between Keynesian and classical economics, specifically how each one handles issues of unemployment. I will also discuss what new developments, starting in the 1980s, have changed macroeconomic thought. Before the great depression of the 1930s, the classical economic views were what most people concerned with economics went by. This classical view…