Keynes` General Theory

br John Maynard Keynes and His Economic Theory

John Maynard Keynes is perhaps the most influential economist of the modern era . His economic theories were groundbreaking and revolutionary and have had a huge impact on the fiscal policies of many modern democratic governments , including that of the United States . Keynes is most famous for his interventionist economic policy , known today as Keynesian economic theory . In Keynesian economic theory , Keynes advocated the active intervention of the government in a nation 's economy . Keynes believed that in times of recession , depression and economic

booms , governments should use all of the fiscal and monetary measures at their disposal in to alter and guide the effects of these economic conditions to the betterment of the country (Keynes 1924 . Because of his staggering influence on modern economic thought scholars today consider Keynes the main founder of macroeconomics

John Maynard Keynes was born on June 5 , 1883 in Great Britain Keynes was nobility by birth , holding the hereditary title of Baron . His father , John Neville Keynes , was an economics professor at Cambridge University , so Keynes came by his penchant for economic thought quite naturally . Keynes 's mother was Florence Ada Brown she was an author of some success , as well as a social reformist at a time when it was unusual for women to have careers outside of their families . Keynes obviously had two very strong , independent , and opinionated figures as role models in his parents , and their early influences no doubt had a direct guiding action on Keynes 's later career ambitions and successes This inclination toward high achievement and success can also be seen in Keynes 's younger siblings . His brother , Geoffrey , became a surgeon and his sister , Margaret , married a Nobel prize winning physiologist

Keynes married Russian ballerina Lydia Lopokova in 1925 . The marriage produced no children , but Keynes had several nieces and nephews , many of whom became highly successful and well-known in their own careers Keynes showed a marked aptitude for financial matters early on in his life and quickly became a successful investor as an adult . He easily built up a fortune through his investments , though lost most of it in the stock market crash of 1929 (Cottrell , 1995 . However , Keynes 's financial prowess proved indomitable , and he soon built his fortune up again , despite the heavy loss he took in the stock market crash

Keynes was educated at the famed Eton school in his early years showing an aptitude for mathematics and history . This solid early foundation allowed him to be accepted into King 's College in Cambridge England in 1902 , where he studied mathematics . However , Keynes 's interests went far beyond mere numbers he was also avidly interested in politics and government . Because of this , Keynes began to study economics at Cambridge . Economics is , after all , a blending of mathematics and government , as no government operates without money and economic principles guide a government 's use of money . Keynes had some remarkable economics professors at King 's College , many...