John Maynard Keynes Case Study

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Background of John Maynard Keynes John Maynard Keynes or his full name John Maynard Keynes, Baron of Tilton was born on 5 June 1983 in Cambridge, England. Keynes died on 21 April 1946 and the place of death was Firle, England. John Maynard Keynes was a British economist and one of the most influential of the 20th century. He was the son of eminently intellectual parents, both of them whom survived. His father, John Neville Keynes, was an economist and as an academic administrator at the King’s College, Cambridge. Furthermore, his mother was one of the first female that has graduated. One thing that is similar is that Keynes’s mother was graduated at the same university which Keynes has entered in 1902. In short, Keynes’s mother was interested…show more content…
British economist was developed the Keynesian economics during the 1930s in an attempt to understand the Great Depression. Keynes prefers that lower taxes and increase government spending or expenditure to increase the demand and make the global economy out of the depression. The theory of the Keynesian economics is the view in the short run, during recessions, economic output is strongly influenced by aggregate demand. Aggregate demand does not necessarily same with the productive capacity of the economy, view by the Keynesian economics; instead, it is influenced by a households and sometimes behaves erratically, affecting production, employment, and inflation. 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, fiscal policies implement by the government and monetary policies implement by the central bank, in order to output stabilization and production over the business…show more content…
He is the first who adopted his idea in macroeconomics. Keynes's ideas were given added impetus by the Great Depression of the 1930s, the worst the Western world had ever known. He disagree with the certain aspects of neoclassical economics which he lumped with Ricardian doctrines, under the heading of "classical economics"', he used many of its postulates and method. The main contribution of Keynes is Keynesian Theory of Economics which is the theory of aggregate demand and its effects on output and inflation. John Maynard Keynes's most influential work is The General Theory of Employment, interest and Money which published in 1936. Keynes was a relatively strong advocate of free markets. Besides that, his contribution to investment methodology was his championing of concentrated investment portfolios. In this, he proposed that it should consist exclusively of investments about which the investor had become highly knowledgeable. Other than that, his proposal regarding 'When the National economies suffer a downturn, governments should borrow and spend money to boost economic activity' had results in economic growth and overcome the debt issues. He also play a important role in the economic settlement which was implemented after the World War 1 and 2. He also played a significant role when World War 2 began to wind down in the Bretton Woods negotiations in 1944. Keynes advocated

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