Term Paper on John Keynes

 

 

Keynes, John Maynard, 1st Baron Keynes of Tilton (1883-1946) was a renowned British economist of the 20th century. He wrote a number of books on economics and currency system including Indian Currency and Finance (1913), Economic Consequences of the Peace (1919), Treatise on Probability (1921), A Treatise on Money (1930) and The General Theory of Employment, Interest, and Money (1936). (gap.dcs.st-and.ac.uk) He was one of the major economists of the century and his works were of great importance as it changed the whole face of the post world war economic policy.
Form 1929 to early 1940s; America went through the Great Depression. During those years there was a major decline in production and sales of consumer goods and a very high level of unemployment. Keynes commented and presented suggestions about the recession and tax policies of America. According to his income theory, the consumption and investments rates depend upon national income. He maintained that spending and tax policies should be designed in such a way that ensures full output and high employment level. These policies should counterbalance inflation and devaluation by achieving equilibrium between supply and demand. In context of America, he suggested that by unbalancing the budget willingly, would increase demand and recovery will follow naturally. His suggestions were not accepted in the beginning but the repression ended once government started spending at the levels proposed by him.
 

 

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