John Maynard Keynes was a British economist whose ideas fundamentally changed the theory and practice of macroeconomics and the economic policies of governments. He built on and greatly refined earlier work on the causes of business cycles and is widely considered to be one of the most influential economists of the 20th century and the founder of modern macroeconomics.
1. The General Theory of Employment, Interest, and Money: This is Keynes’s magnum opus in which he challenged the established classical economics and introduced his theories that would later become the basis for Keynesian economics.
Review: The book is not an easy read, as it deals with complex economic theories, but it is extremely influential in the world of economics. The book argues against the long-held idea that free markets would automatically provide full employment.
Reason to Read: It’s a must-read for anyone interested in understanding the modern global economy, Keynesian economics, or macroeconomic theory.
In a Nutshell: This work upended classical economics and introduced new theories that became the basis for Keynesian economics.
Key Quote: “The long run is a misleading guide to current affairs. In the long run we are all dead.”
2. A Treatise on Money: In this two-volume work, Keynes details the concept of money and its impact on the economy.
Review: While highly technical, this treatise offers a comprehensive look at the concept of money, interest rates, and inflation.
Reason to Read: This book is a valuable read for those interested in monetary theory and economic policy.
In a Nutshell: This treatise is a comprehensive study of money, its functions, and its impact on the economy.
Key Quote: “The importance of money flows from it being a link between the present and the future.”
Keynes’s work in economics has had a profound impact on economic theory and policy. His ideas continue to be studied and utilized in the field of economics and in the formation of economic policy today.