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John Maynard Keynes• Earned Mathematics Degree in 1905.
• Analyzed the Indian monetary system in first Economics book: Indian Currency and Finance.
• Represented the British Treasury in 1919, during the peace conference at Versailles (International settlement of WWI).
• In The Economic Consequence of Peace, he argued against the heavy demands set by the Allies on the German economy.
On Monetary Policy
Ø Wrote Tract on Monetary Reform, and Treatise on Money on monetary policy.
Ø Argued that central banks should stabilize prices levelswith interest rates, by raising them when prices are low and lowering them when prices are high.
On Full Employment
• Conceptualized aggregate demand as the sum of consumption, investment, and government spending.
• Argued that government spending was necessary to maintain full employment.
• Advocated deficit spending during economic downturns to maintain full employment in The General Theory.
• Believed markets should operate freely once the economy reaches full employment through fiscal policy.
• Believed that the role of government should be to balance the propensity to consume and the inducement of investment.
Source:"John Maynard Keynes." The Concise Encyclopedia of Economics. 2008.
Library of Economics and Liberty. Retrieved January 7, 2018 from the World Wide Web: http://www.econlib.org/library/Enc/bios/Keynes.html
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