Friday, January 27, 2017
Keynes's economic theory voted most influential academic book on British life. A public vote to decide which scholarly book has had the greatest impact on Britain has chosen The General Theory of Employment, Interest and Money
"Keynes knew what he was on to when he wrote The General Theory. In a letter to playwright and socialist George Bernard Shaw, he wrote: “I believe myself to be writing a book on economic theory, which will largely revolutionise – not, I suppose, at once but in the course of the next few years – the way the world thinks about economic problems.”
WAS HE RIGHT ABOUT ITS INFLUENCE?
"The book formed the basis for Keynesian economics, which has been a hugely influential economic model in the UK since the Great Depression, and, thanks to Keynesian advocate Gordon Brown, played a key role following the 2008 crash. Brown’s famous quote “no more boom and bust” was a direct reference to The General Theory’s central thesis.
WELL, THAT DID NOT WORK OUT!
"Keynes 1936 opus posits that during recessions economic output is strongly influenced by total spending in the economy in the short term and advocates state intervention to moderate “boom and bust” cycles. It challenged neoclassical economics by relating employment not to the price of labour but to the spending of money, which creates demand.
BUT WHAT CREATES DEMAND?
"Commenting on the book, John Kay, visiting professor of economics at the London School of Economics, said: “The analysis of the book was the dominant influence on macroeconomic policies in the 30 years that followed the second world war, and we still debate, and employ, Keynesian policies today.”
YES, THE MAIN INFLUENCE ON THE LABOUR MOVEMENT - UNFORTUNATELY.
— Via Micheal Roberts
The contributions of Marx and Keynes to understanding the crisis and finding solutions (in English and Spanish)