A. Biography keynes
John Maynard Keynes (1883-1946) initially educated at Eton. As someone good student, he won numerous prizes in mathematics, English languages, and classical art. Keynes continuing education to King's College with the main areas of mathematics. In addition to mathematics he also deepen the philosophy of his teacher Alfred Whitehead. Economic lessons obtained under the guidance Alfread Marshall and A.C.Pigou.
J.M.Keynes really a reflection of a genuine scholar. In addition to experts in economics, which is supported by policies in the mathematical sciences, he also has a deep knowledge of philosophy, politics. In fact, he also understands the world of literature, art, drama theater and classical theater. His parents John Neville Keynes, an economist well enough in that respect. However, his name abode drowned by the shadows by the name of their children far more illustrious.
After completing his studies, Keynes was once the editor on a fairly well-known scientific journal "Economic Journal". In addition, yes also served as paming (civil servant) in the British government. In a very young age (around 26 years) have participated in the team Keynes England delegrasi Versailles peace talks in 1919. Before reaching the age of 30 years she was in the lift as a lecturer at Cambridge University. Keynes enormous influence in the Bretton Woods agreement in 1946 and the establishment of international monetary agencies of the IMF (Internasionla Monetary Fund). Of his services is very large, it then adopted as "baron", a title of nobility is very high in Europe.
B. Works keynes
as an eminent economist, he has written many books. In 1913 he wrote: Indian Currency and finance, which showed interest in the problem-msalah meneter. Next article is: The Economic consquences of the place (published in 'mentioned last written with respect to his experience in the peace delegation Versailles. In 1923 he wrote: A Tract on Monetary Refrom. In this book he shows his attention to the changes that occur in power purchase money. tulisanya the other is A Treatise on Money which was published in 1930. Six years later, he published his most famous book: The General Theory of Employment, interst, and Money.
In his book: The Economic Consequences of the Peace, he criticized the way many ways used by countries to win first d early war (the United States, England and France) in pressing countries that lost (ie the Germans). Although the Treaty of Versailles he represented the British government, he nevertheless did not criticize the ways in use countries that win. It was the state winner presses Germany on condition that such heavy debt payer, in the book he suggests that the propagators pressure the countries that won the war against Germany can lead to anger resentment of German society. What in the forecast by Keynes in 1919 became a reality 20 years later. Germany were defeated in World War I under Hitler retaliated by getting the initiative off the second world war.
C. Criticism against the classical theory keynes
My theory which says that "supply creates its own demand" later in criticism habi-out by Keynes as something of a misnomer. In fact, according to Keynes, the demand usually smaller than the supply. The reason, some of the revenues received community will be in the tube, and not all consumption. Thus effectively usually smaller than the total production. Although this deficiency can be eliminated by lowering prices, revenues would go down. As a result, demand still smaller than the supply. Because consumption is less than income, not all production will be absorbed society. Indeed, this is what happened in the 30s, when companies vying to produce without control. On the other hand, people's purchasing power is limited. As a result, many stock piling. Most companies are forced down production and some even do reonalisasi, namely to reduce production by reducing the number of workers. Rationalization of the company's actions will force some unemployed workers obviously do not earn income. As a consequence, people's incomes fall. Turunya public income menebabkan bei lower power, so that the goods did not sell that production to a standstill. The peak of the economic downturn took place in the 30s in almost all industrialized countries occurred on a large scale depression.
Since the massive despresi the people suspect that there seseuatu wrong with the theory of classical and neo-classical that is considered generally accepted at this time. According to Keynes in his classic view, the production will always create their own perintaanya applies only to prekonomian simple closed. It consists of the household sector and companies alone. At the economic level as this is all income received within a period is usually directly in consumption without the tube. In these circumstances it is perpintaan will always be equal to the supply angrerat. But in the more advanced economies people are more familiar with savings, the majority of revenues will leak (leakage). It can be in the know of leakage in the form of savings, so that current spending is no longer equal to the current income. Thus, aggregate demand will be smaller than agrerat offer. Opinions on top early on argued by supporters of the classic. They say that the savings will be gathered by financial institutions and will be channeled to the inspector. Meurut confidence classical supporters, the market will be set such that the total savings would equal the amount of investment. Thus, leakage teradi in savings will be injected back into the economy through investment, so that the return form balance in the economy. Classical opinion that the amount of savings will always be equal to the amount of investment on top in Keynes argued. Reason, motive people to menanbung not the same as the motive entrepreneurs to invest. Entrepreneurs investing is driven by the desire to have this profit maximization. Meanwhile, the household sector savings melaukan driven by various motives are very different. Included is the motive for guard (pre-cautionary motives), for example, to mengadapi accident, illness, to meet the intent (memperingatan birth, marriage, death), and so on. The difference in this motif causes the amount of savings will not be the same as the amount of investment. Even if the amount is equal to the amount of investment. even if the same amount, according to Keynes was just a coincidence, not a necessity.
Karna keynes observe generally invest less than the amount of savings, he concluded that the aggregate demand is smaller than agrerat offer. This shortage, if not diantisifasi, will lead to imbalances in the economy. Partly because the products are not absorbed by the public, the stock will rise and subsequent period-period forced to dibatas. What are the core of the opinion pokox keynes above that the economy is run according to market mechanisms usually menapai balance at a point below the full-employment.
Keynes another criticism against the classic system should also note that its income is said that no approach penyesuaiyan mechanism (adjustment). This Hi automatically ensure the achievement of economic balance (equilibrium) in tinggkat full use of the verb. Hi this is very clear in his analysis of the labor market.
Previously been described that the classical believe that the position of the balance of all resources, including labor or labor resources, will be utilized secaran full (full employed). In the event of unemployment, the government does not need to take action / whatever wisdom. In accordance laissez faire view of a classic, let alone such circumstances later on people who do not work will be willing to work for lower wages tinggkat. Hai encourage employers to do more labor, until finally all willing to work will get a job.
Kelasik above view is not accepted Keynes. Menururut view of Keynes, in fact the labor market is not in accordance with the classical view. Wherever the workers have some kind of union (labor union) who will try to fight for the interests of workers from a decrease in the level of wages. Keynes condemned the art of classical life analysis based on false assumptions with the reality of everyday life. Even if wages can tingat derivatives (but this possibility was rated by keynes small), the level of people's income would go down. Fall of the income of many members of the community will lead to the fall of the purchasing power. In turn this will menyebaban keseuruhan consumption is reduced. A decreased purchasing power will drive the fall of prices.
If prices go down, the curve of marginal labor and productivity (value of the marginal productivity of labor) are made in the benchmark by employers in hiring labor will fall. If the decline in prices was not so great, the value curves of marginal labor productivity fell only slightly. However, still the amount of labor which is smaller than the labor deposited in the offer. What's worse, if the prices go down derastis. This will cause the value of the marginal productivity of labor curve down derastis anyway. The amount of labor which is accommodated would be even smaller and unemployment will be more extensive.
D. the government on the economy
From the results he observed on the incidence of depression ekonimu on awanya 30s Keynes recommends that the direction of the economy is not granted on market mechanisms. Until certain bats, the role of government precisely in need. For example, if the unemployment, the government can zoom pengeluaranya for labor intensive projects. Thus, most of the workforce is unemployed can work that ultimately could increase incomes. If prices are rising rapidly. Governments can quickly withdraw the money in circulation by using higher taxes. Terkendalipun inflation is unlikely to occur. In that situation occurs the wave motion of economic activity, the government can run pengeuaran policy management and control of effective demand in bentu "counter-cyclical" or "anti-cyclical".
Of the various policies in the capture, keynes keynes more reing rely on fiscal policy. With fiskla policies that the government could affect economic nets. The move was carried out by injecting funds in the form of public spending on projects that can create jobs. This policy is very effective in increasing output and combat unemployment, especially in situations when the resources have not been utilized in full.
What Keynes did not believe in a free market doctrine laisser seseuai
laisser faire passer-classical? If he is not convinced the classic assumption that the economy will find itself toward his net balance? Keynes actually believe all the things that put forward by the classic. However, Keynes considered that the road to full-employment equilibrium and is very long. If the wait for the market mechanism (through subtle hand) that will bring the economy back to equilibrium position, in requiring a very long time. Keynes once wrote: "In the long term we are going to die" (in the long run we're all dead!). So, the only way to bring the economy in the desired direction if he "ran away from the position of equilibrium", thus further description of Keynes, is through invervensi or government intervention.
Thus, if the classics are generally considered taboo government interference. For keynes, government intervention is necessary. Government intervention especially needed if the economy is not seseuai ang expected.
If observed, it seems keynes agree with Marx who said that the classic economic system is not free of fluctuations, unemployment crisis, and so on. Marx tried to destroy the capitalist system and replace it with a socialist system. Instead, Keynes actually want to save the liberal system.
E. Keynes discussion
View sebgai Keynes often considered the beginning of modern economic thought. He did a lot of reform and reformulation of doctrine-the doctrine of classical and neo-classical. Because keynes mengagap government's role in implementing development needs, keynes often called "father of development economics". He was also called "the father of macroeconomics", sebeb formerly in the tradition of classical and neo-classical analyzes micro-economic nature, since keynes economic analysis was also done in the macro. It dilakaukan by looking at the relationship between economic variables (such as opinions, consumption, savings, taxes, government spending, export-imbor, unemployment, inflation and so on) on a large scale in aggregate.
Keynes influence of the developing countries who are eager to see see huge economic development. Since the appearance of Keynes, economists status nai several levels. Their opinions more often heard and taken into taking discretion. J.M. Keynes who is the son of an economist-John Neville Keynes-often compared to John stuart Mill, which is also the son of an economist James Mill. Keynes and Mill juniors alike reject the basic policy implications are embraced by their parents. Both daring journey into a different direction. The difference, J.S. Mill failed to parting with the theoretical structure developed earlier experts (notably by Ricardo), so he finally could only make a "halfway house" between mahzap classical and neo-classical meanwhile J.M. Keynes successfully escape from the past, from tradition leissez faire embraced by economic experts in the past such as Adam Smith, Ricardo and his own teacher Alfred Marshall. Keynes managed to form a "whole house building" in Structure of new economic theories, resulting in a revolution both in theory, and in economic policies.
Partly carried out by keynes in developing new theories can be described as an intellectual reaction to the problems faced in his time. Keynes wanted to know the forces that have caused massive unemployment in the UK in the 20s and major depression in 30s what is in saksikanya, according to the thinking keynes, could not be limited by theories and approaches uasang the classic in learn it from an economic figures earlier economists.
I have discussed the theory that makes the changes made by keynes on classical theory. I hope the article can read ermanfaat alian.
John Maynard Keynes (1883-1946) initially educated at Eton. As someone good student, he won numerous prizes in mathematics, English languages, and classical art. Keynes continuing education to King's College with the main areas of mathematics. In addition to mathematics he also deepen the philosophy of his teacher Alfred Whitehead. Economic lessons obtained under the guidance Alfread Marshall and A.C.Pigou.
J.M.Keynes really a reflection of a genuine scholar. In addition to experts in economics, which is supported by policies in the mathematical sciences, he also has a deep knowledge of philosophy, politics. In fact, he also understands the world of literature, art, drama theater and classical theater. His parents John Neville Keynes, an economist well enough in that respect. However, his name abode drowned by the shadows by the name of their children far more illustrious.
After completing his studies, Keynes was once the editor on a fairly well-known scientific journal "Economic Journal". In addition, yes also served as paming (civil servant) in the British government. In a very young age (around 26 years) have participated in the team Keynes England delegrasi Versailles peace talks in 1919. Before reaching the age of 30 years she was in the lift as a lecturer at Cambridge University. Keynes enormous influence in the Bretton Woods agreement in 1946 and the establishment of international monetary agencies of the IMF (Internasionla Monetary Fund). Of his services is very large, it then adopted as "baron", a title of nobility is very high in Europe.
B. Works keynes
as an eminent economist, he has written many books. In 1913 he wrote: Indian Currency and finance, which showed interest in the problem-msalah meneter. Next article is: The Economic consquences of the place (published in 'mentioned last written with respect to his experience in the peace delegation Versailles. In 1923 he wrote: A Tract on Monetary Refrom. In this book he shows his attention to the changes that occur in power purchase money. tulisanya the other is A Treatise on Money which was published in 1930. Six years later, he published his most famous book: The General Theory of Employment, interst, and Money.
In his book: The Economic Consequences of the Peace, he criticized the way many ways used by countries to win first d early war (the United States, England and France) in pressing countries that lost (ie the Germans). Although the Treaty of Versailles he represented the British government, he nevertheless did not criticize the ways in use countries that win. It was the state winner presses Germany on condition that such heavy debt payer, in the book he suggests that the propagators pressure the countries that won the war against Germany can lead to anger resentment of German society. What in the forecast by Keynes in 1919 became a reality 20 years later. Germany were defeated in World War I under Hitler retaliated by getting the initiative off the second world war.
C. Criticism against the classical theory keynes
My theory which says that "supply creates its own demand" later in criticism habi-out by Keynes as something of a misnomer. In fact, according to Keynes, the demand usually smaller than the supply. The reason, some of the revenues received community will be in the tube, and not all consumption. Thus effectively usually smaller than the total production. Although this deficiency can be eliminated by lowering prices, revenues would go down. As a result, demand still smaller than the supply. Because consumption is less than income, not all production will be absorbed society. Indeed, this is what happened in the 30s, when companies vying to produce without control. On the other hand, people's purchasing power is limited. As a result, many stock piling. Most companies are forced down production and some even do reonalisasi, namely to reduce production by reducing the number of workers. Rationalization of the company's actions will force some unemployed workers obviously do not earn income. As a consequence, people's incomes fall. Turunya public income menebabkan bei lower power, so that the goods did not sell that production to a standstill. The peak of the economic downturn took place in the 30s in almost all industrialized countries occurred on a large scale depression.
Since the massive despresi the people suspect that there seseuatu wrong with the theory of classical and neo-classical that is considered generally accepted at this time. According to Keynes in his classic view, the production will always create their own perintaanya applies only to prekonomian simple closed. It consists of the household sector and companies alone. At the economic level as this is all income received within a period is usually directly in consumption without the tube. In these circumstances it is perpintaan will always be equal to the supply angrerat. But in the more advanced economies people are more familiar with savings, the majority of revenues will leak (leakage). It can be in the know of leakage in the form of savings, so that current spending is no longer equal to the current income. Thus, aggregate demand will be smaller than agrerat offer. Opinions on top early on argued by supporters of the classic. They say that the savings will be gathered by financial institutions and will be channeled to the inspector. Meurut confidence classical supporters, the market will be set such that the total savings would equal the amount of investment. Thus, leakage teradi in savings will be injected back into the economy through investment, so that the return form balance in the economy. Classical opinion that the amount of savings will always be equal to the amount of investment on top in Keynes argued. Reason, motive people to menanbung not the same as the motive entrepreneurs to invest. Entrepreneurs investing is driven by the desire to have this profit maximization. Meanwhile, the household sector savings melaukan driven by various motives are very different. Included is the motive for guard (pre-cautionary motives), for example, to mengadapi accident, illness, to meet the intent (memperingatan birth, marriage, death), and so on. The difference in this motif causes the amount of savings will not be the same as the amount of investment. Even if the amount is equal to the amount of investment. even if the same amount, according to Keynes was just a coincidence, not a necessity.
Karna keynes observe generally invest less than the amount of savings, he concluded that the aggregate demand is smaller than agrerat offer. This shortage, if not diantisifasi, will lead to imbalances in the economy. Partly because the products are not absorbed by the public, the stock will rise and subsequent period-period forced to dibatas. What are the core of the opinion pokox keynes above that the economy is run according to market mechanisms usually menapai balance at a point below the full-employment.
Keynes another criticism against the classic system should also note that its income is said that no approach penyesuaiyan mechanism (adjustment). This Hi automatically ensure the achievement of economic balance (equilibrium) in tinggkat full use of the verb. Hi this is very clear in his analysis of the labor market.
Previously been described that the classical believe that the position of the balance of all resources, including labor or labor resources, will be utilized secaran full (full employed). In the event of unemployment, the government does not need to take action / whatever wisdom. In accordance laissez faire view of a classic, let alone such circumstances later on people who do not work will be willing to work for lower wages tinggkat. Hai encourage employers to do more labor, until finally all willing to work will get a job.
Kelasik above view is not accepted Keynes. Menururut view of Keynes, in fact the labor market is not in accordance with the classical view. Wherever the workers have some kind of union (labor union) who will try to fight for the interests of workers from a decrease in the level of wages. Keynes condemned the art of classical life analysis based on false assumptions with the reality of everyday life. Even if wages can tingat derivatives (but this possibility was rated by keynes small), the level of people's income would go down. Fall of the income of many members of the community will lead to the fall of the purchasing power. In turn this will menyebaban keseuruhan consumption is reduced. A decreased purchasing power will drive the fall of prices.
If prices go down, the curve of marginal labor and productivity (value of the marginal productivity of labor) are made in the benchmark by employers in hiring labor will fall. If the decline in prices was not so great, the value curves of marginal labor productivity fell only slightly. However, still the amount of labor which is smaller than the labor deposited in the offer. What's worse, if the prices go down derastis. This will cause the value of the marginal productivity of labor curve down derastis anyway. The amount of labor which is accommodated would be even smaller and unemployment will be more extensive.
D. the government on the economy
From the results he observed on the incidence of depression ekonimu on awanya 30s Keynes recommends that the direction of the economy is not granted on market mechanisms. Until certain bats, the role of government precisely in need. For example, if the unemployment, the government can zoom pengeluaranya for labor intensive projects. Thus, most of the workforce is unemployed can work that ultimately could increase incomes. If prices are rising rapidly. Governments can quickly withdraw the money in circulation by using higher taxes. Terkendalipun inflation is unlikely to occur. In that situation occurs the wave motion of economic activity, the government can run pengeuaran policy management and control of effective demand in bentu "counter-cyclical" or "anti-cyclical".
Of the various policies in the capture, keynes keynes more reing rely on fiscal policy. With fiskla policies that the government could affect economic nets. The move was carried out by injecting funds in the form of public spending on projects that can create jobs. This policy is very effective in increasing output and combat unemployment, especially in situations when the resources have not been utilized in full.
What Keynes did not believe in a free market doctrine laisser seseuai
laisser faire passer-classical? If he is not convinced the classic assumption that the economy will find itself toward his net balance? Keynes actually believe all the things that put forward by the classic. However, Keynes considered that the road to full-employment equilibrium and is very long. If the wait for the market mechanism (through subtle hand) that will bring the economy back to equilibrium position, in requiring a very long time. Keynes once wrote: "In the long term we are going to die" (in the long run we're all dead!). So, the only way to bring the economy in the desired direction if he "ran away from the position of equilibrium", thus further description of Keynes, is through invervensi or government intervention.
Thus, if the classics are generally considered taboo government interference. For keynes, government intervention is necessary. Government intervention especially needed if the economy is not seseuai ang expected.
If observed, it seems keynes agree with Marx who said that the classic economic system is not free of fluctuations, unemployment crisis, and so on. Marx tried to destroy the capitalist system and replace it with a socialist system. Instead, Keynes actually want to save the liberal system.
E. Keynes discussion
View sebgai Keynes often considered the beginning of modern economic thought. He did a lot of reform and reformulation of doctrine-the doctrine of classical and neo-classical. Because keynes mengagap government's role in implementing development needs, keynes often called "father of development economics". He was also called "the father of macroeconomics", sebeb formerly in the tradition of classical and neo-classical analyzes micro-economic nature, since keynes economic analysis was also done in the macro. It dilakaukan by looking at the relationship between economic variables (such as opinions, consumption, savings, taxes, government spending, export-imbor, unemployment, inflation and so on) on a large scale in aggregate.
Keynes influence of the developing countries who are eager to see see huge economic development. Since the appearance of Keynes, economists status nai several levels. Their opinions more often heard and taken into taking discretion. J.M. Keynes who is the son of an economist-John Neville Keynes-often compared to John stuart Mill, which is also the son of an economist James Mill. Keynes and Mill juniors alike reject the basic policy implications are embraced by their parents. Both daring journey into a different direction. The difference, J.S. Mill failed to parting with the theoretical structure developed earlier experts (notably by Ricardo), so he finally could only make a "halfway house" between mahzap classical and neo-classical meanwhile J.M. Keynes successfully escape from the past, from tradition leissez faire embraced by economic experts in the past such as Adam Smith, Ricardo and his own teacher Alfred Marshall. Keynes managed to form a "whole house building" in Structure of new economic theories, resulting in a revolution both in theory, and in economic policies.
Partly carried out by keynes in developing new theories can be described as an intellectual reaction to the problems faced in his time. Keynes wanted to know the forces that have caused massive unemployment in the UK in the 20s and major depression in 30s what is in saksikanya, according to the thinking keynes, could not be limited by theories and approaches uasang the classic in learn it from an economic figures earlier economists.
I have discussed the theory that makes the changes made by keynes on classical theory. I hope the article can read ermanfaat alian.
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