A common thread linking the ideas presented in the book is one of ambition; in contrast to the philosopher-economists of previous centuries, the economic profession in recent decades has traveled down a neoclassical rabbit hole, constrained by mathematical models and the desire to have economics be treated as a hard science.
The meaning of great is of a size, amount, extent or intensity considerably above the normal or average.
He must be the one who have made profound impact on the society, generated the key breakthrough of economics and our way of living. However, besides the contributions for the key breakthrough of economics, what we are also concerned are the extent of the impact of on the society made from their works, the degree of enlightening to the offspring, their creative theories that had notably changed our way of thinking and living.
It has never been an easy task to select the greatest. But if there must be one, then J. Keynes would be the answer.
Keynes was a heroic figure — a superman whose personality dominated economic discussion of the free world. Most of all, the greatest majority of young economists were debating Keynes, and mostly on the affirmative side. Keynes was born in 5th June in Cambridge, England.
His father was a noted Cambridge economist and his mother was the mayor of Cambridge. The excellent academic background flourished Keynes and had recondite impact on the development of his work and personality.
The book sold 84, copies and made Keynes an instant celebrity. But the book, no matter how popular it was, was considered scientifically unimportant.
The theory offered an explanation to the depression and prescription for ending the depressions by proper government policies. The General Theory stated that in order to keep the society fully employed, government had to run deficits when the economy is slowing, which means its expenditure should be larger than its income.
The government expenditure would be used to invest in public projects, which could generate employment opportunities. As their markets become saturated, businesses reduce their investments, setting in the motion a dangerous cycle: According to the General Theory, a decrease in consumption will lead to increase in saving, which will in turn lead to a decrease in aggregate demand.
The resulting decline in the output will correspondingly cause a decline in amount consumed. Unemployment rate increases due to the decrease in aggregate demand and the purchasing power of the public will be reduced.
No matter how many wages reduced or how many workers sacked, the entrepreneurs will still continue to make losses if the society continues to save in excess of new investment.
Yet, in order to achieve simplicity in the General theory, some factors had to be left out of the picture. Keynes produced the general theory through the means of Aggregate Analysis. The aggregate chosen for variables are, with the exception of employment, monetary quantities or expressions.
Yet Keynes was not the first one to indicate such schema. He worked out the aggregate, monetary and income analysis. This suggested that the aggregate analysis of the General Theory does not stand alone, but is a member of a family that had been growing rapidly.
The second consideration is that the model of Keynes system belonged to marcostatics, not to marcodynamics. In this sense, the General Theory must not be attributed to those dynamic elements, for instance, expectations. Furthermore, Keynes confined his model to the range of Short-run phenomena.
In fact Keynes had no patience with economic theorists who assumed that everything would work out in the long run. Working backwards from the most outward manifestations to their wellsprings, we start with the policy conclusion identified by many with his name: This dissented from a view, widely but by no means universally held, that such an action would result only in inflation and could be of no genuine assistance.
That conclusion comes from a theoretical structure which itself produced a revolutionary conclusion: Underemployment equilibrium was likely to happen when the actual demand cannot meet its maximum amount. This conclusion dissented from the economics of both his day and ours.In What Would the Great Economists Do?
she explains the key thoughts of history's greatest economists, how our lives have been influenced by their ideas and how they could help us with the policy challenges that we face urbanagricultureinitiative.coms: 6. The Ten Most Influential Economists of All Time in association with the University of Kent The economy has a huge impact on the quality of our lives, those whom have had an effect on the policy adopted, how it functions and the economy's health remain influential both during their tenure and for generations after.
Linda Yueh’s The Great Economists is a sweeping overview of economic thought from the time of Adam Smith and the Invisible Hand to Robert Solow’s theories of low productivity in a post-recession world/5. The Ten Most Influential Economists of All Time The economy has a huge impact on the quality of our lives, those whom have had an effect on the policy adopted, how it functions and the economy's health remain influential both during their tenure and for generations after.
20 Most Influential Living Economists Coming up with a list of influential economists from the past is easy enough. John Locke, Adam Smith, David Ricardo, Karl Marx, and Alfred Marshall readily spring to mind.
Legacies of Great Economists by economist and Professor Timothy Taylor acquaint you with the thoughts, theories, and lives of these and other great economistsandmdash;those individuals who have shaped the world of economics and influenced our lives.