Keynesian Employment, Interest, and Money General Theory

Author: Keynes
Publisher:
Publish Date: 2002-01-01
Features: Keynes was a world-famous theoretical innovator, political activist, and the most outstanding British economist of the first half of the 20th century. This book is one of his important works, and its publication triggered the "Keynesian Revolution" worldwide. The central idea of this book is the theory of effective demand, which argues that insufficient effective demand leads to increased unemployment and economic recession, while factors such as interest rates, wages, and prices cannot enable the economic system to self-regulate. Keynes proposed: "As long as the government lowers interest rates, stimulates investment, implements public spending, and economic militarization, it can solve the unemployment problem and resolve the economic crisis." This theory laid the foundation for governments worldwide to implement policies of economic intervention.