John Maynard Keynes and Friedrich August Hayek

John Maynard Keynes was natural on June 5, 1883. He was a British economist whose ideas select profoundly affected the possible action and practice of modern macrostintings, as well as the scotch policies of governing bodys. He greatly slight earlier work on the causes of business cycles, and advocated the use of pecuniary and financial measures to mitigate the untoward effects of economic recessions and depressions. His ideas argon the basis for the school of cerebration know as Keynesian economics. In the 1930s, Keynes spearheaded a revolution in economic thinking, overturning the older ideas of neoclassical economics that held that free markets wuld in the pitiful to medium term mechanically provide full participation, as long as workers were tractile in their wage supplicates. Keynes preferably argued that aggregate demand headstrong the overall level of economic activity, and that inadequate aggregate demand could lead to prolonged periods of towering unemploy ment. Following the outbreak of world War II, Keyness ideas concerning economic insurance policy were adopted by prima(p) Western economies. During the 1950s and 1960s, the victory of Keynesian economics resulted in almost all capitalist governments adopting its policy recommendations. His best known work was the General Theory of Employment, quest & Money which was published in 1936. Keynes argued that relying on markets to get to full employment was not a proper idea. He believed that the economy could root at any offset and that there would not be automatic changes in markets to turn this situation. The main Keynesian theories utilize to justify this view were the dig up market, money market, the multiplier and the flash theory. For Keynes, he also believed that two the state and the private orbit play an important role. For example, he advocated for interventionist government policy. He mind it would be beneficial for the government to use fiscal and monetary mea sures to mitigate the negative impac...