The life of john maynard keynes harrod

John Maynard Keynes was born on June 5th, 1883. He died aged 62 in 1946, having left an enduring legacy on the world, not all of it good. He effectively founded modern macroeconomics, and left his name to a school of economic thinking called Keynesian economics.

He thought that economic activity was ultimately determined by aggregate demand, or total spending in the economy. High interest rates, which can attract savers, can result in inadequate aggregate demand, leading to periods of high unemployment.

The life of john maynard keynes harrod

During recessions, therefore, governments should intervene with spending, pushing forward with such things as infrastructure projects and public works, borrowing the money to back them. He thought the deficit spending could be used to stimulate economic activity and employment.

The debts could be paid off in times of economic growth. The basis of Keynesian economics is thus economic management, in which governments are supposed to smooth the econo