John Maynard Keynes and his philosophy

in OCD5 months ago

John Maynard Keynes (1883 - 1946), image source from Wikimedia Commons.

Greetings friends and colleagues back with another very important and influential review within the world of economics, as his philosophy served as the basis for the conceptual basis of economic policy to regulate the economy, under the approach of macroeconomics that deals with the most aggregate variables of the world and economic reality such as fiscal deficit, unemployment, inflation, government spending, GDP, John Maynard Keynes native of England this great author, his philosophy was based on the fact that the capitalist system does not tend to full employment or the balance of productive factors, his research and hypotheses were based on the management and design of policy as a regulatory mechanism of an economy, to establish economic policies to stimulate full employment, to stimulate aggregate demand taking into account all the productive factors in the presence of deficit, with it the management of public spending, to meet the demands of society.

Friend reader within his contribution we have one of his most revolutionary publications as it was: "The General Theory of Employment, Interest and Money", thanks to this interesting work based on his economic philosophy, he tries to explain to us the relationship that you have some macroeconomic variables such as employment, income and interest rates, to stimulate aggregate demand, where economic growth will depend on to alleviate unemployment and also know the need for household consumption, is where the importance of stimulating the gross domestic production of a nation, thanks to it for an economy is known to produce, for whom to produce, what resources I have and which would be those that I have to look outside, all this mechanism and adds the private sector for general employment, it increases domestic production generating a national income that can meet their public spending.

GDP = C + I + G + (X - M):

Represents C represents household consumption, I represents investment, G represents public spending, X represents exports and M represents imports, it is considered that if national income or disposable income increases with t government intervention, to will increase consumption.

In fact, his theory is a masterpiece that embodies a turning point in the history of economic thought. To fully answer its message, it seems necessary not only to dwell on the life of its author, but also situated in its context Keynes intellectual, professor of Economics at Cambridge, skilled unleasher of controversy high official, financial speculator and theater enthusiast, causes a break with the past in the field of economic theory, modifying its approach with the aim of making it more social.
General Theory of Occupation, Interest and Money by John M. Keynes ... by 50Minutes, 2017.

Thanks to his economic philosophy every day new economic policies are born to regulate the economy, according is economic system applied to comply with society and also control the monetary economic policy, since vision is based on clearly see the problem that symbolizes the unemployed or unemployed workers, the significant amount of resources available and unused, which contribute to the stimulation of domestic production and that generates a national income may than public spending.



Hi newton666,

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