John Maynard Keynes, Essay Example

Facts about John Maynard Keynes

Economics is a king subject which has its own significance in the current corporate world. Inevitably, the concept underlies in economics has a definite edge over all the other subjects and literature. Unfortunately, there is no single definition of the term ‘economics’ is available (Samules, 2010). The most authentic and widely definition had proposed by Adam Smith (AS), known as the father of economics.

According to the concept of AS, economics is the name of how to earn the money and how to consume it. Likewise that there are number of authors who proposed the basic definition of economics, the theories of economic also presented by different authors too. Among different authors, the name of John Maynard Keynes (JMK) is one of them. JMK was the one who gave a light in the field of economics at that time when other economists and theorists get failed to deliver and tailoring the things (Samules, 2010).

JMK was a British Economist, born on 5^th June 1883 in the United Kingdom (UK). Keynes got his early education from Perse School, England from 1892 to 1897 and later on joined King Collage for further studies. From the start of his academic career, JMK has an extraordinary interest in the field of economics and later on he did masters in this field (Samules, 2010).

JMK who is very famous due to different theories he presented and among those theories, liquidity preference theory is one of them which has its own significance. JMK came under the light during the Great Depression of 1930. He presented liquidity preference theory at that time to protract out different economies of the world from recession and depression.

He presented the idea regarding the depression and said that ‘Wars are good for economy”. On this statement, JMK received numerous criticisms but later on he defended his words perfectly. JMK revealed that continuous spending is more than important for an economy to grow; otherwise economies have a tough time in their long run momentum. The theory presented at that time is still in used and implementing on lots of financial systems of the countries (Zameer, 2009).

JMK’s theories are bit difficult to grab because of their sophistication but it is one of the most widely used theories that defines and examines the relationship between unemployment, money and price. JMK stated several times that, it should be a prior duty of the government to give every type of confidence to them in order to increase the spending level in an economy otherwise people will start hoarding their money which can create numerous problems for an economy (Zameer, 2009).

This particular concept is still using in the financial structure of the countries. JMK is known as a macroeconomist, who gave his valuable theories for macroeconomic environment instead of microeconomics. Means to Prosperity, was one of the most important publication of JMK which he had proposed at the time of 1930’s great depression. British Government rewarded him on his noble work and said that due to this man, we came out of the recession.

Till the end of the world, this great economist will be in the memories of the policy makers because he gave a sophisticated model to them to tackle with economic crisis.

References

Samules, K (2010), All About John Maynard Keynes, McGraw Hill Publications

Zameer, L (2009), All About John Maynard Keynes, Pearson Group Hill Publications