Nobody downloaded yet

John Maynard Keynes - Essay Example

Comments (0) Cite this document
Historians often note that if a nation does not know where it has come from then it will be unable to plan effectively for where it will go in the future. However, for the economic history of the USA, unlike many other nations across the globe, its history took place entirely in the time of modern capitalism…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER96.4% of users find it useful
John Maynard Keynes
Read TextPreview

Extract of sample "John Maynard Keynes"

Download file to see previous pages He initiated the "Keynesian Revolution" which split economics into two divergent paths; one away from a traditional laissez faire economic system and toward an economic theory that saw the government as an essential player in maintaining growth within a capitalist economy. The following paper will review the economic policies of Keynes. Firstly, a review of his contribution to the USA recovery form the Great Depression shall be given. Secondly, a discussion of Keynes contribution to the global economic recovery following World War II will be presented. Thirdly, the use of Keynesian theory during the Conservative Era in the USA will be outlined. A conclusion will summarize the main points of the paper.
The Great Depression was a global event of economic downturn that was initiated in 1929 and spanned across a decade until 1939. As such it is the longest and most harrowing depression that the industrialized world had known. Beginning in the USA, the Depression resulted in significant reductions in output, widespread unemployment and poverty, and acute deflation worldwide (Romer 3). At the time, the gold standard provided almost a global network of fixed currency exchange rates, and it has been stated that this was a core reason that the economic downturn in the USA swept through other national economies. In the USA, the Depression has been described as the second worst socio-cultural event since the Civil War. The actual causes of the Depression are still contentious issues today among economist and academia. Although it is generally agreed upon that there was a multitude of contributing factors; declines in consumer demand; financial panics; and misguided government policies (Calomoris 5; Romer 4).
The recovery from the Great Depression was enabled by fundamental changes to national economic approaches, macroeconomic policy and the theory of economics itself. Keynes played a key role in the recovery with his advocating of interventionist government policies, which required the government to draw on fiscal and monetary sources to buffer the detrimental effects of the present Depression, as well as future potential recessions and booms. Keynes stressed the need for the government to intercede occasionally and exert force on the market economy (Romer 3; Skidelsky 5). Previous to this time, economists had simply believed that an economy would continue to grow and develop; it was thought that a market failure would be a temporary situation that could fix itself if given time. This laissez-faire approach was developed by the economist Adam Smith. It was argued by Smith that if the market was left alone it ("the invisible hand") would run itself (Skidelsky 15).
In fact, many approached an economic crisis as a state that would stimulate new opportunities to make a profit. Keynes, though presented a theory wherein the economy could become stagnant, and remain so, regardless of the amount of unused resources. He postulated that capitalism had no intrinsic ability to maintain growth regardless of external circumstances (Romer 7). Such a dramatic shift from the present approach to economics was revolutionary; that during times of severe depression the government was the only hope for an economic recovery. In this way, Keynes became known as the father of ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“John Maynard Keynes Essay Example | Topics and Well Written Essays - 2750 words”, n.d.)
John Maynard Keynes Essay Example | Topics and Well Written Essays - 2750 words. Retrieved from
(John Maynard Keynes Essay Example | Topics and Well Written Essays - 2750 Words)
John Maynard Keynes Essay Example | Topics and Well Written Essays - 2750 Words.
“John Maynard Keynes Essay Example | Topics and Well Written Essays - 2750 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document


Other than the obvious (Washington, Franklin, Jefferson, and Adams) which American political or military leader do you think had

3 Pages(750 words)Essay

To what extent was John Maynard Keynes' principal contribution to political economy a re-conceptualisation of optimal relation

...?To what extent was John Maynard Keynes’ principal contribution to political economy a re-conceptualisation of optimal relationships between the and the market? Introduction There is often an inconsistency on the minds of political scientists between what an author articulates and what his theories turn out to be. This is always an inducement to the mind to go deep in search of more plausible and more believable source of information on which academia can rely on. In most cases and very often, obvious anomalies are merely discarded as miscalculations, leaving the initial elucidation unaffected. This is often the case between Keynesian economists and other reformists’ theories....
20 Pages(5000 words)Essay

John Maynard Keynes

... John Maynard Keynes’ Aggregate Expenditure Model The aggregate expenditure model of John Maynard Keynes concentrates on the correlation between aggregate expenditure and income. Keynes applied the income-expenditure approach to explain that real GDP’s equilibrium level may not signify real GDP’s normal level (Tucker 2008). In the income-expenditure framework, real GDP’s equilibrium level is real GDP’s level that is in agreement with the existing aggregate expenditure level (Tucker 2008). *picture taken from Tucker (2008, p. 224) The above diagram is the income-expenditure model of real GDP’s equilibrium formulated by Keynes. If the existing aggregate expenditure level is not adequate to acquire the whole supplied real GDP, output... ). The...
2 Pages(500 words)Essay

John Maynard Keynes vs Friedrich Hayek

...John Maynard Keynes vs Friedrich Hayek Since the end of World War 2, the fundamental and conflicting ideals pertaining toeconomic freedom between Friedrich von Hayek and John Maynard Keynes have engulfed the economic landscape for a long time. Evidently, both of these renowned economists advanced different perspectives concerning economic freedom pertaining to markets, monetary policy, and fiscal policy. It is important to note that both economists believed the effect of economic ideas on public policy was enormous. In the period after Word War 2, there was a pertinent economic question that sought to examine the right role that...
3 Pages(750 words)Research Paper

John Maynard Keynes contribution to macro economics

...? JOHN MAYNARD KEYNES CONTRIBUTION TO MACROECONOMICS Macroeconomics 4/24 Keynes General theory John Maynard Keynes is a very prolific contributor to modern macroeconomics. He played a very big role in the development of macroeconomics theories that are in use up to date. Keynesian general theory of macroeconomics states that in the short run, economic output is strongly influenced by aggregate demand. Keynes also said that the total economy expenditure is not a reflection of its productivity. Keynes states that in order for aggregate supply to meet aggregate demand, the goods supplied...
8 Pages(2000 words)Term Paper

John M. Keynes

...? John Maynard Keynes: The Relevance of His Economic Theories Details: al Affiliation: Submission John Maynard Keynes: The Relevance of His Economic Theories John Maynard Keynes, a man of towering intellect with a capability of moving an entire generation towards an economic thought, was, without a doubt, a gravitating influential figure whose efforts have, though not entirely, enabled a democratic, flourishing civil world. Coming from a background with a hard academic excellence coupled with a solid experience of a working economy spanning from the Kings College to Cambridge University...
6 Pages(1500 words)Research Paper

Adam Smith & John Maynard Keynes

...Adam Smith & John Maynard Keynes. Adam Smith and John Maynard Keynes are great economists. Their economic theories did not have much in common, however, no one can deny the impressive influence Smith and Keynes had on the policies of their times and even on the theoretical positions of their most vocal opponents. What is more, John Maynard Keynes and Adam Smith offered more than economic theory; they proposed policy solutions to the existing economic problems. These solutions were developed in order to improve macroeconomic performance and national prosperity. As Wesley Mitchell put it, Smith sought to convince people that "the wealth of a nation would be promoted with vastly greater effectiveness by the ‘obvious and simple system... , or in...
8 Pages(2000 words)Essay


...Assess the impact of the ideas and activities of John Maynard Keynes on the development of the international economy: John Maynard Keynes was arguably the most influential economic thinker of the twentieth century. His ideas and theories have generated academic discussion and debate. As with all landmark scientific achievements in human history Keynesian economics too has had mixed fortunes in its journey so far. The following quote from Knut Wicksell succinctly expresses this condition, “…there is no single doctrine taken to be a scientific truth without the diametrically opposite view being similarly upheld by authors of high repute … in other fields of science these conflicts usually come to an end … It is only in the field... of...
13 Pages(3250 words)Essay

John Maynard Keynes as an Economic Person

...John Maynard Keynes John Maynard Keynes was born in England in a known as Cambridge on June 5th 1883. His early part of education was at Eton, which formed the foundation of his development intellectually. It was while at Eton that his interest for mathematics and history was sparked. Here he won prizes for his excellence in classics. From Eton he went on to join the King’s College which is also in his birthplace, Cambridge. As an undergraduate from this college, his brilliance was quite notable. At Cambridge he studied mathematics. However, he put studies aside before tackling the part 2 of the mathematics Tripos. From, Cambridge,...
3 Pages(750 words)Article

Brittany maynard

...Brittany Maynard was an American woman with terminal brain cancer, who realized that she no longer could fight this battle with terminal cancer. In her own words, it was a huge decision because from her perspective the remedy was to pull the plug. From my understanding, I felt that it was the ethical thing to get the right treatment. On the contrary, there are some moral implications of understanding the issues that are revolved in providing life to someone who does not want to live in vegetative state or with a disability. It is clear that most people are not in touch with disabled individuals, which gives them a false sense of living with disability. This itself becomes a testament to the fear of not complete living... , which is what...
1 Pages(250 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic John Maynard Keynes for FREE!

Contact Us