John Maynard Keynes

Age of Enlightenment 3 D's Activity

Define

John Keynes was an influential British economist, he is best known for his proposal that when national economies suffer a downturn, governments should borrow and spend money to boost economic activity, then part of the proceeds of the resulting economic growth should then be used to repay the debt. He is also famous for Keynesian Economics.

Display

Details

  • Keynes became important during this time period because of a combination of the Great Depression, how the U.S. was trying to pull itself out of it, and Keynes own achievements in economics. His achievements that led him to get attention were the publications of his most regarded book, 'The General Theory of Employment, Interest, and Money, which advocated mixed economy and argued against the common idea that market economy will restore itself to full employment after temporary shocks.


  • During the 1950s and 1960s the success of Keynesian economics resulted in almost all capitalist governments adopting its policy recommendations. Keynes famously predicted the failure of the Versailles treaty and that it would hold political and economic backlash.


  • John Maynard Keynes directly impacted the current theory and practice of modern macroeconomics by applying his created theory, Keynesian Economics, into society after The Great Depression. His legacy also involves being a proponent of the Fiscal Policy, when the government provides revenue to influence the economy,