John Keynesian Economics

3593 Words15 Pages
John Maynard Keynes was born on 5th June 1883 in Cambridge into a wealthy academic family. His father was an economist and a philosopher and his mother befell the city’s first female mayor. He surpassed academically at Eton and Cambridge University, where he deliberated mathematics. Keynes was British economist and one of the most powerful of the 20th century. Past graduating, Keynes left to job in the India Office, and concurrently administered to work on an exposition, often in office hours, which earned him a companionship at King's College. In 1908, he stopped the civil service and returned to Cambridge. Following the outbreak of World War One, Keynes joined the treasury, and in the wake of the Versailles peace treaty, he published 'The…show more content…
In the Keynesian view, aggregate demand does not necessarily equal the productive capacity of the economy; instead, it is influenced by a host of factors and sometimes behaves randomly, affecting production, employment, and inflation. Keynesian economics served as the standard economic model in the developed nations during the later part of the Great Depression, World War II, and the post-war economic expansion (1945–1973). Keynesian General Theory of Employment, Interest and Money During the Great Depression, unemployment soared to 25% in the USA and Germany. Economics had no advice to give to leaders anxious to do something, and none of the neoclassical predictions were coming true. The government of the UK commissioned J.M. Keynes to lead a commission of top British economists in a general review of economic theory; their findings were summarized by Keynes in, “The General…show more content…
Keynes contrasted his approach to the aggregate supply, focused 'classical' economics that preceded his book. The interpretations of Keynes that followed are contentious and several schools of economic thought claim his legacy. Keynesian economists often argue that private sector decisions sometimes lead to inefficient macroeconomic outcomes which require active policy responses by the public sector, in particular, monetary policy actions by the central bank and fiscal policy actions by the government, in order to stabilize output over the business cycle.[2] Keynesian economics advocates a mixed economy – predominantly private sector, but with a role for government intervention during recessions. Keynesian economics served as the standard economic model in the developed nations during the later part of the Great Depression, World War II, and the post-war economic expansion
Open Document