Schools of Economic Thought Part 3: Keynesian Economics

English economist and philosopher John Maynard Keynes is largely considered to be the father of modern macroeconomics. His ideas in the early 1900s have had a huge impact on both economic theory as a whole and the economic policies of governments worldwide.

 

In the second part of this three-part series, we discuss Keynesian economics, starting with a refresher on the classical and Austrian schools of economics. We also unpack how he diverged from his contemporaries, the key ideas in his revolutionary book “The General Theory of Employment, Interest and Money,” why Keynesian economics remains largely relevant today, and more.

 

Show Highlights

 

• [02:01] Recap of classical economics

• [03:54] Recap of the Austrian school of economics

• [08:07] The context in which John Maynard Keynes found himself in

• [13:39] How Keynes’ economic and educational background shaped his key ideas

• [17:38] Why Keynes differed from his Austrian contemporaries

• [21:26] The key ideas of Keynes’ book “The General Theory of Employment, Interest and Money”

• [26:14] Richard Kahn and his contributions to Keynesianism

• [31:05] Joan Robinson on monopsony

• [32:53] Other notable disciples of Keynes and their works

• [35:57] The pros of Keynesianism

• [41:38] The cons of Keynesianism

• [44:46] Why Keynesianism remains relevant today

 

Links and Resources

 

🟢 Schools of Economic Thought Part 1: The Classical Economists → shorturl.at/esTYZ

🟢 Schools of Economic Thought Part 2: The Austrian Economists → shorturl.at/rBKM1

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🟢 Facebook → Facebook.com/fiscallysavage

🟢 Twitter → Twitter.com/FiscallySavage

 

Books Mentioned

 

🟢 The General Theory of Employment, Interest and Money by John Maynard Keynes

🟢 The Relation of Home Investment to Unemployment by Richard Kahn

🟢 The Economics of Imperfect Competition by Joan Robinson

🟢 Mr. Keynes and the "Classics"; A Suggested Interpretation by John Hicks

🟢 Stabilizing an Unstable Economy by Hyman Minsky