Sunday, October 30, 2016

John Maynard Keynes and Friedrich August Hayek

John Maynard Keynes was born on June 5, 1883. He was a British economist whose ideas have profoundly affected the theory and blueprint of modern macro economics, as swell up as the economic policies of judicatures. He greatly refined earlier lock on the ca parts of patronage cycles, and advocated the use of fiscal and fiscal measures to excuse the adverse personal effects of economic recessions and depressions. His ideas are the nucleotide for the school of thought cognise as Keynesian economics. In the 1930s, Keynes spearheaded a transformation in economic thinking, overturning the erstwhile(a) ideas of neoclassical economics that held that part with markets wuld in the short to speciality term freeally raise full employment, as huge as workers were flexible in their wage demands. Keynes instead argued that gather demand determined the overall level of economic activity, and that brusk aggregate demand could lam to prolonged periods of high unemployment. intere st the outbreak of World contend II, Keyness ideas concerning economic constitution were follow by leading western economies. During the 1950s and 1960s, the success of Keynesian economics resulted in almost all capitalist governments adopting its policy recommendations. His best known work was the General Theory of Employment, Interest & Money which was make in 1936. Keynes argued that relying on markets to unsex to full employment was not a good idea. He believed that the economy could settle at any equilibrium and that there would not be automatic changes in markets to correct this situation. The chief(prenominal) Keynesian theories used to apologize this view were the labor market, funds market, the multiplier and the inflation theory. For Keynes, he also believed that both the bring up and the private sector prank an important role. For example, he advocated for interventionist government policy. He thought it would be beneficial for the government to use fiscal an d monetary measures to mitigate the negative impac...

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