General theory of money interest and employment pdf

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general theory of money interest and employment pdf

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It caused a profound shift in economic thought, giving macroeconomics a central place in economic theory and contributing much of its terminology [1] — the " Keynesian Revolution ". It had equally powerful consequences in economic policy, being interpreted as providing theoretical support for government spending in general, and for budgetary deficits, monetary intervention and counter-cyclical policies in particular. It is pervaded with an air of mistrust for the rationality of free-market decision making.

The General Theory of Employment, Interest, and Money

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The General Theory of Employment, Interest and Money

Keynes unleashed a devastating critique of classical macroeconomics and introduced a new replacement schema that defines macroeconomics. The success of the Keynesian revolution triggered a counter-revolution that restored the classical tradition and now enforces a renewed classical monopoly. That monopoly has provided the intellectual foundations for neoliberalism which has produced economic and political conditions echoing the s. Openness to Keynesian ideas seems to fluctuate with conditions, and current conditions are conducive to revival of the Keynesian revolution. However, a revival will have to overcome the renewed classical monopoly..

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Written: ; Source: The General Theory of Employment, Interest and Money by John Maynard Keynes, Fellow of the King's College, Cambridge, published by​.


John Maynard Keynes

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Keynes asserted that the link between the money stock and the level of national income was weak and that the effect of the money supply on prices was virtually nil—at least…. It was only later, in The General Theory of Employment, Interest and Money , that Keynes provided an economic basis for government jobs programs as a solution to high unemployment. The General Theory , as it has come to be called, is one of the most influential economics books in history, yet…. This insight, combined with a growing consensus that government should try to stabilize employment, has led to much…. In his General Theory of Employment, Interest and Money —36 he endeavoured to show that a capitalist economy with its decentralized market system does not automatically generate full employment and stable prices and that governments should pursue deliberate stabilization policies.

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