Rus Articles Journal

Who such John Maynard Keynes?


In 1935 Mr. George Bernard Shaw received the letter from John Maynard Keynes in whom Keynes reported: It seems to me, I write the book according to the economic theory which will make revolution... in approaches to economic problems . And it is valid, Keynes`s book General theory of employment, percent and money (1936) made revolution in the economic analysis and made Keynes one of the most noticeable and influential economists of all times.

Keynes was not only the economist, but also incredibly active, many-sided person who was engaged in a set of the most different cases. He was the chief representative of the British treasury at the Parisian peace conference during World War I, the deputy chancellor of treasury, the board member of the English bank, the member of the board of trustees of National gallery, the chairman of the board for support of music and art, the treasurer in Royal college in Cambridge, the Economic Journal editor, headed Nation and New Statesman magazines, and also National society on life insurance.

Besides, he was the managing director of investment company, organized ballet troupe of Kamargo (his wife Lidiya Lopokova was the well-known star of the Russian imperial ballet) and constructed (not without benefit for himself) art theater in Cambridge.

In additives, Keynes found time to acquire personal wealth game at the share and commodity exchanges. He was also leading figure Blumsbersky group who was at the head of vanguard elite and exerted huge impact on art and literary tastes in England.

But the most important - Keynes was the versatile scientist. In the books he considers such wide range of subjects as problems of probability theory, monetary economy and a consequence of the peace treaty signed after World War I. However its main work is above-mentioned General theory about which John Kenneth Gelbreyt wrote in due time that it is absolutely unclear, badly written and prematurely published .

Nevertheless, in the book basic provisions are clearly stated, schedules of a curve of demand for investments, the schedule of investments and equilibrium GDP are drawn.

Moreover, in General theory the statement of economists of classical school that economic recession can samoistselitsya is convincingly criticized. According to the Keynesian analysis, mass recession in investment expenses in capitalist economy involves a bigger reduction of cumulative expenses, a gross product and the cumulative income.

Keynes claimed that in capitalist economy there is no automatic mechanism for extraction it from a phase of recession or a depression. The economy can long remain in a condition of a depression. Really, mass unemployment during a depression 30 - x years, captured the whole world, is the sufficient empirical proof of correctness of Keynes.

Its main recommendation to the government contradicting a classical position consisted that it has to play an active role in providing a full employment.

Keynes is a vigorous critic of socialism - proved that the government has to pursue policy of stabilization and provide maintenance of market system of economy for which economists of classical school and Keynes so stood up.]