JOHN MAYNARD KEYNES: LIFE STORY EXPLORED

JOHN MAYNARD KEYNES

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keynes Birth Date: 5th June, 1883 AD

Died ON: 21 April, 1946 AD

Born in: Cambridge

Nationality: British

 

  • John Maynard Keynes was one of the most influential British economist of the 20th century. His ideas fundamentally and drastically changed the practice of economic policies of the world and also the macroeconomics. Furthermore, he is regarded as the founder of MACROECONOMICS.
  • He introduced The Keynesian principles to the world that created a revolution in economic thinking with its unconventional approach. It challenged the neoclassical economics and helped to moderate the economic activity of the country and also helped to control the ‘boom’ and ‘bust’ phases.
  • He believed that unemployment is basically caused if people don’t spend enough or adequate money they are supposed to spend on goods and services offered to them. Furthermore, Keynes’ solution to this problem was that the government should borrow money and boost the demand by pushing the money into the economy.

Early Life:

  • At the age of five and half, John entered St Faith’s Preparatory School in 1892. Academically bright, John gained a scholarship that earned him a place at Eton College in 1897. It was at the  Eton College where he developed his love for mathematics, classic economics and history.
  • And yet again, he won another scholarship in 1902 which led him to move to King’s College, Cambridge.
  • Keynes graduated with a Bachelor’s degree in Mathematics in 1904.
  • Thereafter, he spent two years at the university campus, studying philosophy, taking part in debates and informally attending economic lectures as a graduate student for a year or so. This marked his only education in economics.

Career:

  • Keynes started his career in civil services as a clerk at the India Office, in 1906.
  • he published his first professional economics article in the “Economics Journal” en 1909, on the effect of a global economic downturn on India.
  • In 1913, he published his first book titled — ‘Indian Currency and Finance’, based on the experience he gained at the India Office.
  • Furthermore, In 1930, he came up with two volumes of ‘Treatise of Money’ in which he stated that the amount of money saved should not exceed the amount of money invested. This would lead to a rise in unemployment.
  • His proposal of government running on budget deficit was highly criticized by certain professional economists. Who accused him of supporting irresponsible governance.
  • Meanwhile, he penned an influential book on war finances, namely — ‘How to Pay for the War’, published in 1940. The book insisted that the war effort should be financed by higher taxation and compulsory saving rather than deficit spending so as to avoid inflation.

Major works:

  • John Maynard Keynes most prominent work came in 1936. Which was his book, titled —’The General Theory of Employment, Interest and Money’.
  • The book became a benchmark for future economic thoughts and laid the foundation for Keynesian principles that have sustained till date. Through the book, Keynes created a revolution in economic thinking by bringing up the importance of budget deficit.

Awards and Achievements:

  • On King’s Birthday Honor, Keynes was appointed as Companion of the Order of Bath for his wartime framework, in 1917.
  • In June 1942, he was rewarded with a hereditary nobility in the King’s Birthday Honors for his services. During same year, on 7th July, he was gazetted (Given title) as ‘Baron Keynes of Tilton’, in County of Sussex.

in addition, HOW KEYNES PROVED 3 SECTOR ECONOMY EQUILIBRIUM??

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ADAM SMITH ; THE FATHER OF MODERN ECONOMICS

 

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