Think Keynesian economics and you immediately recollect the name John Maynard Keynes. A british economist, Keynes was of the view that free market enables full employment, economic reforms and economic thinking. He was also a proponent of the government intervening during periods of bust and boom cycles, which was the most widely followed policy throughout the world during the early thirties of the modern century. By the seventies though Keynesian economics was discarded for its pitfalls.
Born on June 5th 1883, in Cambridge England, John Maynard Keynes is accredited with fundamentally changing the practice and theory of macroeconomics. He studied business cycles and refined his studies to a higher degree. Today, he is widely recognized as the most popular economist of the 20th century and even the founder of modern macroeconomics.
Going back to 1930, Keynes was revolutionary in changing economic thinking with challenging ideas that went against neoclassical economics. He refined the existing beliefs and suggested that it was aggregated demand that influenced economic activity and unemployment levels.
Soon after the start of World War II many western economies began to follow Keynes recommendations and a decade after his death in 1946, almost all capitalist economies had converted to Keynesian economy.
The best summary of Keynes’s contribution is summed up by Time magazine that said his radical ideas on how the government should spend what they really don’t have is what allowed capitalism to prosper. Unknown to many, John Maynard Keynes served as the director for the Bank of England.