by K1NGS4V4G3 August 04, 2017
title of book by John Maynard Keynes (1883-1946) outlining the general concept of Keynesian economics. The book was published in 1936.
*Context*
______________________________
Prior to the Great Depression, opinions about how to properly manage the economy were dominated by Neoclassical economics, which advocated little government intervention. In particular, unemployment was regarded as the consequence of workers failing to accept wages sufficiently low to permit full employment.
During the Great Depression, unemployment soared to 25% in the USA and Germany. Economics had no advice to give to leaders anxious to do something, and none of the neoclassical predictions were coming true. The government of the UK commissioned J.M. Keynes to lead a commission of top British economists in a general review of economic theory; their finding were summarized by Keynes in *The General Theory*.
*The Findings*
______________________________
The Cambridge team did not have access to statistics of national income and product accounting (NIPA). They did have some data on unemployment and prices, especially from the USA.
Keynes also identified several inherent logical problems with neoclassical economic theory about saving and investment. The theory said that all economic output of an economy would tend to be consumed; all saving would be invested; and all workers would be employed, *provided wages fell low enough*.
Keynes noted the economic mechanism by which investment occurs has little to do with the existing rate of saving; both are influenced by interest rates, but other forces come into play (e.g., liquidity preference for saving, business opportunities and user cost for investment). Hence, aggregate demand can drift very far out of alignment with output (or potential output).
Another finding was that employment rates actually did not respond in a predictable way to the fall in wages. The US economy suffered periods when a reduction in the wage level lead to increases in employment, despite the assumption that workers would have withdrawn from the labor market.
Finally, Keynes proposed the use of monetary policy and fiscal policy for regulating business cycles.
*Context*
______________________________
Prior to the Great Depression, opinions about how to properly manage the economy were dominated by Neoclassical economics, which advocated little government intervention. In particular, unemployment was regarded as the consequence of workers failing to accept wages sufficiently low to permit full employment.
During the Great Depression, unemployment soared to 25% in the USA and Germany. Economics had no advice to give to leaders anxious to do something, and none of the neoclassical predictions were coming true. The government of the UK commissioned J.M. Keynes to lead a commission of top British economists in a general review of economic theory; their finding were summarized by Keynes in *The General Theory*.
*The Findings*
______________________________
The Cambridge team did not have access to statistics of national income and product accounting (NIPA). They did have some data on unemployment and prices, especially from the USA.
Keynes also identified several inherent logical problems with neoclassical economic theory about saving and investment. The theory said that all economic output of an economy would tend to be consumed; all saving would be invested; and all workers would be employed, *provided wages fell low enough*.
Keynes noted the economic mechanism by which investment occurs has little to do with the existing rate of saving; both are influenced by interest rates, but other forces come into play (e.g., liquidity preference for saving, business opportunities and user cost for investment). Hence, aggregate demand can drift very far out of alignment with output (or potential output).
Another finding was that employment rates actually did not respond in a predictable way to the fall in wages. The US economy suffered periods when a reduction in the wage level lead to increases in employment, despite the assumption that workers would have withdrawn from the labor market.
Finally, Keynes proposed the use of monetary policy and fiscal policy for regulating business cycles.
The *The General Theory of Employment, Interest, and Money* completely shook up the world of economic policy. Hereafter, governments took responsibility for economic conditions or they lost power.
by Abu Yahya March 03, 2009
A beautiful loved cherished missed daughter ,interest from every angle of the world, that can only be Admired and loved by her parents, Kerrie Marie Thomas and Jimmy Anthony Reeves we love you darling so much so so so so so so much 07760413121
by KezaBash November 03, 2020
if you use this sentence the speaker then knows you don't give a shit about his or her speech and that you want to die
by budgetsheep February 19, 2019
a nonsense phrase coined by some dumb Koreans, which actually means 'do you crave for attention that much?' ,or 'are you an attention seeker?' , as the Korean word 'gwans(h)im' means both 'interest' and 'attention'. if you see someone say so(especially could be often seen in online games chat such as Overwatch), i could 100% assure you that he's Korean. you'd better take him down starting off by 'work more on your English, you dip shit.'
angry korean game nerd:병신 시발 die die die fuck do you want some interest?
others: what does that even mean?
others: what does that even mean?
by fi ne November 03, 2019
Someones friend : “it’s national ask out your love interest day”
Someone : ”ok”
*later*
Someone : “will you go out with me”
Someones love interest : “yes!!”
Someone : ”ok”
*later*
Someone : “will you go out with me”
Someones love interest : “yes!!”
by Hijello August 01, 2022
So exciting that nobody could ever out-excite her. She is a social oracle, who's favourite pastimes include hovering, sitting in silence, and awkward small talk. Not to mention sailing, and eating grapes.
*Hattie approaches person and sexually prods her in the sides*
Hattie: Heeey.
Random person: Oh. Hi. How was the party?
Hattie: *monotone* Ohhhh myyyy godddddddddd, i got sooooo wasted off TOTAL shitmix, i ended up in bed with some hot guy. Who was hot. Oh my godddddddddd, look at this picture i have on my phone of his penis. oh my GOD how did that get there? Oh, i vaguely remember tossing him off. No wait, i TOTALLY tossed him off. oh my godddddddddddd.
hattie - about as interesting as a particularly grey looking pebble.
Hattie: Heeey.
Random person: Oh. Hi. How was the party?
Hattie: *monotone* Ohhhh myyyy godddddddddd, i got sooooo wasted off TOTAL shitmix, i ended up in bed with some hot guy. Who was hot. Oh my godddddddddd, look at this picture i have on my phone of his penis. oh my GOD how did that get there? Oh, i vaguely remember tossing him off. No wait, i TOTALLY tossed him off. oh my godddddddddddd.
hattie - about as interesting as a particularly grey looking pebble.
by t655645765 March 09, 2009