15 Must Know John Maynard Keynes Facts About The Famous Economist | Kidadl


15 Must Know John Maynard Keynes Facts About The Famous Economist

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John Maynard Keynes was a British economist whose ideas, known as Keynesian economics, influenced the modern political and economic theory and many governments' fiscal policies.

He is most known for promoting interventional government policy, which would see the British government utilize fiscal and monetary measures to reduce the negative impacts of global recessions, depressions, and booms. He is regarded as one of the economists' most important inventors of contemporary theoretical macroeconomics.

His catchphrase, 'In the long run, we're all dead,' is still used today. He was one of the most influential economists in history. Keynes is an economist who has had a substantial influence on the overall state of economics. Even though he crashed into the area of economics, he has undoubtedly reshaped it and is responsible for most of what we know today. Read on to learn more about his economic life as a financial consultant during the economic downturn. Afterward, also check out Marie Maynard Daly facts and John Wall facts.

John Maynard Keynes: Life History

Keynes was a great student since his childhood. Keynes enrolled at Perse School Kindergarten when he was seven years old, but he learned more through home studies.

However, as time passed, he began to show more potential, and in 1894, he topped the class for the first time and was awarded a mathematics prize. In 1902, he was awarded a mathematics and classics scholarship at King's College, Cambridge. In August 1906, he sat the Civil Service tests and came in second out of ten applicants. The highest-ranking official had the first option of whatever department to join, and he selected the treasury. The India Office was the next stop for Keynes.

The India Office could not provide a suitable job for Keynes. He usually focused on his own projects, dedicating all of his leisure time to studying probability theory. He subsequently applied for a Fellowship at King's College by submitting a probability dissertation. He resigned from the India Office on June 5, 1908, and proceeded to King's with some financial aid from his father in the hopes of winning the Fellowship competition the following year.

However, with the outbreak of the First World War in August 1914, his life changed significantly. Initially, he carried on as before, writing War and the Financial System in the Economic Journal in August 1914. By 1915, Keynes was working for the Treasury, and as a result, he was no longer allowed to publish. The 1930s were another critical stage in Keynes' career. This was a time when there was a lot of unemployment and depression. Keynes' health began to decline in 1937. He'd never be entirely functional again. However, during World War II, his ability was recognized, and he was awarded an honorary position in the Treasury. Creating the International Monetary system was one of the most important tasks he worked on in his last years.

With the outbreak of the Second World War, Keynes became an influential economist in the United Kingdom. He experienced a major heart attack in 1937. He returned to Cambridge two years later to teach. Meanwhile, Keynes published 'How to Pay for the War,' an essential book on war financing. The book, published in 1940, argued that the war effort should be funded by greater taxes and mandatory savings rather than deficit spending to avoid inflation. During the 1944 Bretton Woods Conference, he was the leader of the British delegation and chairman of the World Bank committee. He fought for a flexible approach to currency management, supported the formation of a single worldwide currency, and oversaw the construction of new global organizations such as the World Bank and the International Monetary Fund.

John Maynard Keynes: Family

John Maynard Keynes was born on June 5, 1883, to John Neville Keynes and Florence Ada Keynes. His father was John Neville Keynes, an economist, and his mother was Florence Ada Keynes, a social reformer.

He had three siblings; two younger brothers and a sister. In 1921, John Maynard Keynes began dating Lydia Lopokova, a well-known Russian dancer who was one of the stars of Sergei Diaghilev's 'Ballets Russes,' and in 1925, they married. He had no children with Lydia Lopokova.

Who did John Maynard Keynes influence?

According to British economist John Maynard Keynes, classic economic theory does not give a proper solution to end depressions.

He said that uncertainty forced individuals and businesses to quit spending and investing and that the government must intervene and spend money to restore the economy. His theories opened a new era of economic ideology and influenced the world. It was considered a time of the Keynesian revolution.

To reduce the negative impacts of economic recessions and depressions, Keynes urged the employment of fiscal and monetary reforms. His views serve as the foundation for the school of thinking known as Keynesian economics. He is widely regarded as the creator of contemporary macroeconomics. He concluded that elected governments should utilize their responsibility for public expenditure to increase demand in an economy, creating a climate suitable for economic growth through a path toward full employment. Keynes did not promote expanding the size of the public sector. Still, he did believe that government funding should be used by private sector organizations to create public works and, as a result, improve their employment levels in an economy.

At Cambridge and he also wrote a book called 'The Economic Consequences of Peace.'

John Maynard Keynes: Contribution In Economics

His first significant contribution to economics was writing criticism of the Versailles settlement, which was eventually published under the title 'The Economic Consequences of the Peace.' This study was crucial to the economic analysis of the kind of repayments being imposed on the German economy.

Keynes was determined to end the compensation payments made against Germany while working at the Treasury (Skousen, 2007). These payments were set so high that the innocent Germans were traumatized, and the German economy suffered, even though the payments were to be made with taxpayers' money. Furthermore, the payments hindered the country's capacity to repay and prevented Germany from importing products from other nations.

Keynes also wrote about Indian economics, and in 1913 he released a large book titled 'Indian Currency and Finance.' The book is regarded as a classic, describing the 'gold exchange standard.' In 1913, Keynes was named secretary of a Commission to Examine Indian Finance and Currency. He began looking for a publisher for his major book on probability based on his fellowship thesis.

The book suggested that economic and corporate development will rise if a country's investment rate exceeds its savings rate. If the savings rate is larger than the investment rate, the economy will slow down and finally enter a global recession. This is the foundation of Keynes' view that increasing government expenditure will reduce unemployment and aid economic recovery.

Did You Know?

Maynard Keynes is most recognized for his economic ideas on the causes of long-term unemployment (Keynesian principles).

Keynes's ideas laid the foundational principles for most Western nations' controlled and welfare-oriented version of capitalism. However, the global spread of the Keynesian message is mainly responsible for the relatively high levels of employment obtained by most Western industrial countries after the second world war and a considerable shift in attitudes regarding the role of government in economic activity.

John Keynes founded 'Keynesian Economics.' He led a shift in economic policies that challenged the widely held belief that free markets would automatically provide full employment and that everyone who wanted a job would be able to find one as long as workers were willing to be flexible in their wage demands.

Keynes went on to say that there are no self-balancing processes in open markets that lead to full employment. According to Keynesian economists, government involvement is justified by public policies aimed at achieving full employment and price stability. Keynes stated that governments should handle issues in the short term rather than wait for market forces to correct problems in the long run.

Keynes attended Eton college with the aid of a scholarship. In 1905, he graduated from King's College, Cambridge, with a degree in mathematics. After that, he spent another year at Cambridge studying economics under Alfred Marshall, the then-doyen of British economics, and Arthur Pigou, who was soon to be a successor as Professor of Political Economy at Cambridge.

Keynes began his career in the Civil Service, where he spent nearly two years at the India Office, having never actually been to the country. Indian Currency and Finance (1913), his first book on economics. As a result of this effort, Keynes became a member of the Royal Commission on Indian Finance and Currency (1913–14), which was his first big step into public life.

Keynes returned to Cambridge as an Economics Professor in 1908. During the same year, he worked on 'A Treatise on Probability,' which was successfully presented as fellowship research at King's College in 1909. This dissertation was rewritten and republished in 1921, and it is still considered a revolutionary work in the discipline. He then began working for the Treasury after the First World War.

He also wrote several articles. Some of the most famous article writings of Keynes were 'The Economics of War in Germany,' 'The End of the Gold Standard,' 'Am I liberal?', 'The General Theory of Employment,' 'The Great Slump of 1930', and 'The means to Prosperity.'

He is one of the significant economists who introduced new economic thinking throughout the world. With his book, 'The Economic Consequences of the Peace,' Keynes became a superstar before becoming one of the most regarded economists of the century. His theories have been changed, developed, and challenged several times. Despite its roots in The General Theory, Keynesian economics is being practiced today. Econometrics was developed in great part to explain Keynes' macroeconomic theories experimentally. The fact that Keynes' views have influenced so many brilliant economists is proof of the peculiarity and impact of his ideas.

John Maynard Keynes is famous and recognized globally because of his notable publications and Keynesian theory. He introduced the world to new aspects of economics. He majorly focused on issues of unemployment in his books.

Today's modern macroeconomics is based on Keynes' research and writings. The idea of questioning economic assumptions at the time led to the development of Keynesian economics. Even though not all components of Keynesian economics are still relevant today, Keynes had a significant effect on economic theory and transformed macroeconomics.

The Key argument of Maynard Keynes was 'The government can lift an economy out of a slump by increasing demand and triggering a cycle of higher output and employment generation. He believed that the primary driving force in an economy is consumer demand. As a result, the idea advocates for budget expansion. Its primary instruments are government infrastructure expenditures, unemployment benefits, and literacy. His classical economic theory argues for minimal governance as well.

According to John Maynard Keynes, the great depression was primarily caused by lower expenditure and monetary contraction. Keynes' theory proposed that government spending increases, tax cuts, and monetary expansion might be utilized to combat depressions. Since the 1930s, this realization, along with a growing understanding that the government should endeavor to sustain employment, has resulted in a considerably more active policy.

With the publication of The Economic Consequences of Peace in 1919, John Maynard Keynes became internationally recognized for his critical analysis of the Versailles peace agreement. As a result, German economics professionals nominated Keynes for the Nobel Peace Prize three years in a row, in 1922, 1923, and 1924. Because Keynes was named to the shortlist of nominees, he was examined in an advisory report in 1923, followed by one in 1924 for the Norwegian parliament's Nobel Committee.

However, the Peace Prize was not awarded in 1923 or 1924, even though Keynes was deemed a deserving candidate. There is no information available that throws light on this subject. Nevertheless, the evaluation procedure's facts, particularly the public conflict between two Prize Committee advisers on Keynes' narrative of the Versailles discussions, urge a speculative response.

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Hemant Oswal
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Hemant Oswal

<p>With global experience in marketing and business development, Hemant is a seasoned professional with a unique perspective. He holds a Bachelor's degree in Commerce from the University of Delhi and a Master's degree in Marketing from The University of Adelaide in Australia. Hemant's work in China, Hong Kong, and Dubai has honed his skills and provided valuable experience. He broadens his understanding of the world through reading non-fiction books and watching documentaries.</p>

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