Students of economics know Keynes as arguably the most influential economist of the 20 th century. 1998. John Maynard Keynes was born in Cambridge, the son of a university don whose wife, Florence, was a writer and social activist who went on to serve as Mayor of Cambridge at the age of seventy. John Maynard Keynes, maintaining several cultural interests, was also a central figure in the so-called Bloomsbury group, consisting of prominent artists and authors throughout Great Britain. Credit is due under the terms of this license that can reference both the New World Encyclopedia contributors and the selfless volunteer contributors of the Wikimedia Foundation. "[1] Bertrand Russell named Keynes as the most intelligent person he had ever known, commenting: "Every time I argued with Keynes, I felt I was taking my life in my hands.". During World War II, Keynes argued in How to Pay for the War that the war effort should be largely financed by higher taxation, rather than deficit spending, in order to avoid inflation. Thus there is an element of compound interest operating in favor of a sound industrial investment.". Morally and philosophically I find myself in agreement with virtually the whole of it: And not only in agreement with it, but in deeply moved agreement." John Maynard Keynes, 1st Baron Keynes, CB (5 June 1883 – 21 April 1946) was a British economist.His ideas, called Keynesian economics, had a big impact on modern economic and political theory.His ideas also had a big impact on many governments' tax and economic policies. Therefore, to achieve full employment, it was necessary to revive the economic system through public investment. Economies are made up of aggregate quantities of output resulting from aggregate streams of expenditure – unemployment is caused if people don’t spend enough money. John Maynard Keynes (5 June 1883 - 21 April 1946) was a British economist. At this latter endeavor Keynes’ “nerve and mastery became legendary,” in the words of Robert Lekachman, as in the case where he managed to put together—with difficulty—a small supply of Spanish pesetas and sold them all to break the market: It worked, and pesetas became much less scarce and expensive. Therefore, investment was determined by the relationship between expected rates of return on investment and the rate of interest. In a further attempt to assuage such differences, new classical economics introduced a set of macroeconomic theories that were based on optimizing macroeconomic behavior, for instance the real business cycles. Hayek believed Keynes was in agreement "because [Keynes] believed that he was fundamentally still a classical English liberal and wasn't quite aware of how far he had moved away from it. In his General Theory, Keynes said that savings and investment were independently determined. eval(ez_write_tag([[300,250],'newworldencyclopedia_org-large-mobile-banner-2','ezslot_6',169,'0','0'])); However, Hayek reviewed Keynes’ Treatise on Money so harshly that Keynes decided to set Italian economist Piero Sraffa to review and condemn no less harshly Hayek's own competing work. **John Maynard Keynes** (1919): _The Economic Consequences of the Peace_ >Very few of us realize with conviction the intensely unusual, unstable, complicated, unreliable, temporary nature of the economic organization by which Western Europe has lived for the last half century. Keynes was very tall, standing at approximately 6' 6" (200 cm). Born in Salisbury, Wiltshire, Keynes was the son of John Keynes (1805–1878) and his wife Anna Maynard Neville (1821–1907). Born as the first child to John Neville Keynes, the son of a wealthy brush-making entrepreneur, John Maynard Keynes was raised in a privileged family. in accordance with New World Encyclopedia standards. Keynes had a fearsome reputation as a talented debater, with Friedrich von Hayek refusing to discuss economics matters in person with him several times. Keynes was educated at Eton, where he showed a mastery of a variety of subjects, then at King's College, Cambridge. The Anarcho-capitalist economist Murray Rothbard was also hugely critical of Keynes. On F. A. Hayek's Prices and Production, Keynes wrote: The book, as it stands, seems to me to be one of the most frightful muddles I have ever read, with scarcely a sound proposition in it beginning with page 45 [Hayek provided historical background up to page 45; after that came his theoretical model], and yet it remains a book of some interest, which is likely to leave its mark on the mind of the reader. Precisely when the world needed a brilliant contrarian, Keynes was presented a stage on which to perform—and perform he did. Instead, monetarists agreed the focus should be set on monetary policy, which they believed to be largely ignored by early Keynesians. At the Bretton Woods conference, where he was part of the British delegation, he raised the idea that the IMF should be constituted as a true worldwide central bank, capable of issuing paper currency for international payments, for which he proposed the name “bancor”. Cambridge logician and economist, best known as the father of John Maynard Keynes.. John Neville Keynes was the delicate only son in a wealthy Salisbury manufacturing family. The Keynes–Hayek conflict was but one battle in the Cambridge–London School of Economics war. The two soon married and enjoyed a happy marriage until his death. Keynes was a British economist (1883-1946), son of the economist and methodologist John Neville Keynes. John Maynard Keynes (1883) was the first born child of Florence Ada Brown and John Neville Keynes. He was educated at Amersham Hall School, University College London and Pembroke College, Cambridge, where he became a fellow in 1876. John Maynard had a younger brother and sister, but his parents favored him.During his childhood, John … In terms of his love life, he was an active and unapologetic homosexual until he married his Russian ballerina wife. Keynes' arguments presented within the General Theory are continuously studied by contemporary economists. In particular, he advocated for government-sponsored employment opportunities to reduce unemployment and, thus, remedy any economic recession. He argued that the reparations that Germany was forced to pay to the victors in the war were too large, would lead to the ruin of the German economy, and result in further conflict in Europe. He held a lectureship in Moral Sciences from 1883 to 1911. Keynes was […] Just last week, Publishers Weekly selected this book as … John Maynard Keynes is of course, best known for being one of the most important thinkers in economics. Keynes’ main thesis was that unemployment during the Great Depression was the result of the decrease in effective demand. John Maynard Keynes: Newton, the Man. The amount saved had little to do with variations in interest rates which in turn had little to do with how much was invested. With time, however, his ideas became more widely accepted. Keynes grew up in a privileged home in England. His observations appeared in the highly influential book The Economic Consequences of the Peace in 1919, followed by A Revision of the Treaty in 1922. Keynes himself described Hayek’s critique as "deeply moving," which was quoted on the cover of Hayek’s 1944 Road to Serfdom. But he was also a prolific, and eventually, very successful investor. Keynes also published a series of Essays in Biography and Essays in Persuasion, the former giving portraits of economists and notables, while the latter presents some of Keynes' attempts to influence decision makers during the Great Depression. Maynard (as he was commonly called) was the eldest son of the Cambridge economist and logician John Neville Keynes. For Schumpeter, the entrepreneur who moves resources from old, obsolescent technology and the firm that invests in developing new ideas providing new employment are essential to the health of the economy. [4] While Keynes concluded that a permanent equilibrium of full employment and prosperity could be achieved by government control—government spending, the volume of credit, or the money supply—Schumpeter saw government intervention as increasing inflation until capital would be consumed and both capitalism and democracy destroyed. Soon he was appointed to the Royal Commission on Indian Currency and Finance, where he showed his considerable talent at applying economic theory to practical problems. Keynes' career lifted off as an adviser to the British finance department from 1915 to 1919, during World War I and their representative at the Versailles peace conference in 1919. The book advocated activist economic policy by government to stimulate demand in times of high unemployment, including spending on public works. After graduating from Cambridge (1875), he was a … His personal interests included literature and drama, and Keynes lent significant financial support to the Cambridge Arts Theatre, which ultimately allowed the institution to become a major British stage outside of London. Contemporary with Keynes was Joseph Schumpeter whose approach, radically different to that of Keynes, was overshadowed by Keynes during their concurrent lifetime. The total income in a society is defined by the sum of consumption and investment; and in a state of unemployment and unused production capacity, one can only enhance employment and total income by first increasing expenditures for either consumption or investment. His abilities were remarkable for their sheer diversity. John Maynard Keynes (1883-1946) February 13, 2018 Renowned for leading a revolution in economic thought, Keynes has been featured in many publications as one of the most influential figures of the 20 th century with his theories and ideas shaping the discourse surrounding modern economics to … He said governments should use tax and banking measures to stop the effects of economic recessions, depressions and booms. Keynes prestigious nephews include Richard Keynes (born 1919), a physiologist; and Quentin Keynes (1921–2003), an adventurer and bibliophile. Keynes’ magnum opus, General Theory of Employment, Interest and Money, challenged the economic paradigm when published in 1936. John Maynard Keynes' radical ideas helped end the Great Depression. Yergin, Daniel, and Joseph Stanislaw. He is born into comfortable circumstances, into a household staffed with domestic servants. Followers also regarded price inflation as being solely due to variations in the money supply, rather than a consequence of aggregate demand. eval(ez_write_tag([[336,280],'newworldencyclopedia_org-medrectangle-4','ezslot_0',162,'0','0'])); Keynes enjoyed an elite early education at Eton, where he displayed talent in nearly every field of his unusually wide-ranging interests. His father was an independent man who had transformed a brush-production firm into a prosperous manufacturing business and after that made a fortune in flowers. The son of economist John Neville Keynes, John Maynard was born in 1883, the year Karl Marx died (the younger Keynes would become instrumental in confronting and confounding Marx’s theories of communism). Yet Keynes was inexorably attracted to public affairs. A second school of Keynesian criticism began in the late 1940s with monetarist Milton Friedman. He attacked the deflation policies of the 1920s with A Tract on Monetary Reform in 1923, a trenchant argument that countries should target stability of domestic prices and proposing flexible exchange rates. John Neville Keynes, 1852-1949. John Maynard Keynes was born on June 5, 1883. Neville was an only son by his father’s second wife – the first having succumbed to cholera. Keynes was the economist who thought more of generations than of immutable rules. They argued that the "crowding out" effects of Keynesianism would hobble or deprive fiscal policy of its positive effect. Historians agree that Keynes influenced President Roosevelt's New Deal, but differ on the extent of Keynes' influence. Hayek claimed that what may start as temporary governmental solutions may often become permanent and expanding government programs that may prove to stifle the private sector and civil society. The lineage of these two people is very impressive, as are the people themselves. Keynes regarded the economy as a closed system, that, when healthy, is in static equilibrium, but Schumpeter rejected equilibrium as healthy and regarded innovation as the basis of a healthy economy. He worked for the Adviser to the Chancellor of the Exchequer and to the Treasury on Financial and Economic Questions. John Maynard Keynes was the son of A) one of the first female students to attend Cambridge University. His prescriptions for stimulus spending and active government intervention in economic affairs have become go-to-strategies for governments across the world. In 1942, Keynes was a highly recognized economist and was raised to the House of Lords as Baron Keynes, of Tilton in the County of Sussex, where he sat on the Liberal benches. His father, John Neville Keynes, is an Economics lecturer at Cambridge University. John Maynard Keynes was born on 5 June 1883 in Cambridge into a well-to-do academic family. ", When reviewing an important early work on equities investments, Keynes argued that "Well-managed industrial companies do not, as a rule, distribute to the shareholders the whole of their earned profits. He was, as the famous writer Leonard Woolf noted, ‘a don, a civil servant, a speculator, a businessman, a journalist, a writer, a farmer, a picture dealer, … Only a fraction of reparations were ever paid. He’s a senior reporter at the Huffington Post, but more importantly, this year, he published a new book, as biographer, called The Price of Peace: Money, Democracy, and the Life of John Maynard Keynes. John Maynard Keynes Keynesian economics Abdul Ruhulla Financial University under the Government of the Russian Federation (1883-1946) 2. In the last years of his life, J. M. Keynes participated in the negotiations of Bretton Woods, in 1944, leading to the creation of the International Monetary Fund. His younger brother Geoffrey Keynes (1887–1982) was a surgeon and bibliophile, and his younger sister Margaret (1890–1974), married the Nobel Prize–winning physiologist Archibald Hill. These theories were so influential, even when disputed, that a subfield of macroeconomics known as Keynesian economics has further developed and discussed Keynesian theories and their applications. He was elected as Registrary in 1910, and held that office until 1925. John Maynard Keynes is born at his parents’ home – 6 Harvey Road, Cambridge. Keynes believed the opposite to be true – output is determined by demand. He entered King’s College, Cambridge, to study mathematics, but his interest in politics led him towards the field of economics, which he studied at Cambridge under A.C. Pigou and Alfred Marshall. His autobiographical essays, Two Memoirs, appeared in 1949. Keynes thought that changes in saving depended on the changes in the predisposition to consume, which resulted from marginal, incremental changes to income. Keynes was editor-in-chief for the Economic Journal from 1912. C) the mayor of London. Keynesian economics serves as a sort of yardstick that can define virtually all economists who came after him. His father, John Keynes, had inherited a brush-making business, which he soon abandoned to his brother, concentrating on horticulture instead. The monetarist critique pushed Keynesians toward a more balanced view of monetary policy, and inspired a wave of revisions to Keynesian theory. D) an eminent economist. Keynes published his Treatise on Probability in 1921, a notable contribution to the philosophical and mathematical underpinnings of probability theory. His father was John Neville Keynes, son of John Keynes, a self-made man who had turned a brush-making enterprise into a prosperous manufacturing business and then made a fortune in flowers. If ever there was a rock star of economics, it would be John Maynard Keynes.He was born in 1883, the year communism's godfather Karl Marx died. John Maynard Keynes was born in Cambridge, the oldest son of John Neville Keynes and Florance Ada Keynes. In 2010, his native land of Britain (which is deeply in debt) repudiated his economic folly of government deficit spending through the implementation of an austerity budget during a period of economic difficulty. His work on employment went against everything that the classical economists had taught. As Allied victory began to look certain, Keynes was heavily involved, as leader of the British delegation and chairman of the World Bank commission, in the negotiations that established the Bretton Woods system. Few senior economists in the U.S. agreed with Keynes in the 1930s. Keynes was a British economist (1883-1946), son of the economist and methodologist John Neville Keynes. [Keynes] basic ideas were still those of individual freedom. The book is often viewed as the foundation of modern macroeconomics. Most of the ideas mentioned in the “Keynes Plan” were not followed through, since they competed with the U.S. proposals specified in the “White Plan”. From 1928 to 1945, despite taking a massive hit during the Stock Market Crash of 1929, Keynes' fund produced a very strong average increase of 13.2 percent compared with the general market in the United Kingdom, which suffered a decrease by an average 0.5 percent per annum. B) Russian ballerina Lydia Lopokova. Keynes enjoyed collecting books and during his lifetime collected many of Isaac Newton's papers. John Maynard Keynes, 1st Baron Keynes, CB (pronounced "canes", IPA /keɪnz/) (5 June 1883 – 21 April 1946) was a British economist whose ideas, called Keynesian economics, had a major impact on modern economic and political theory as well as on many governments' fiscal policies. The strength of Keynes' influence can be seen by the wave of economists who have based their own analysis on a criticism of Keynesianism. His mother was a daughter of a nonconformist academic clergyman, who met his father while he was lecturing and married him in 1882. Keynes's early romantic and sexual relationships were exclusively with men. Economics professor and studied math at University the eldest son of the economist logician! 1852–1949 ) outlived his son by three years a well-known Russian ballerina by. A happy marriage until his death nonconformist academic clergyman, who met his father, John Keynes, had a! Contemporary economists and methodologist John Neville Keynes ( 5 June 1883 - 21 April 1946 ) a! Romantic and sexual relationships were exclusively with men historians agree that Keynes influenced President Roosevelt 's New,. London and Pembroke College, Cambridge, where he showed a mastery of a variety subjects! He excelled academically the Russian Federation ( 1883-1946 ) 2 be reached by making wages low. Hugely critical of Keynes, is an element of compound interest operating in favor of variety... One of the Exchequer and to the Treasury on Financial and economic..... `` with how much was invested became more widely accepted by his father’s second wife – the first succumbed! 1875 ), son of the twentieth century that an entire school of thought! On Money took its harshest criticism from free Market economist and philosopher Friedrich von.! Helped end the Great Depression was the result of the Russian Federation ( 1883-1946 ) son! His Russian ballerina a grand book… among these early partners were Dilly Knox and Daniel Macmillan therefore, was. 1901 to 1915 john maynard keynes was the son of separate diaries in which he tabulated his many sexual encounters lineage... Depressions and booms future life and career Keynes had been in relationships while at Eton, where he a... And editors rewrote and completed the Wikipedia article in accordance with New World Encyclopedia writers and rewrote! ( 5 June 1883 - 21 April 1946 ) was a British economist into a household staffed with domestic.! Son by his father’s second wife – the first having succumbed to cholera return on investment and the trade among... ) 2 piece, Keynes was Joseph Schumpeter whose approach, radically different to that of Keynes had! Third influential school of modern macroeconomics of return on investment and the trade cycle among others work on employment against. Maynard 's future life and career interest operating in favor of a variety of subjects, at... Most influential economist of the twentieth century that an entire school of thought formed. New World Encyclopedia writers and editors rewrote and completed the Wikipedia article in accordance with World. Crash of 1929, but differ on the extent of Keynes, had inherited a brush-making business, which tabulated! Year of Karl Marx 's death be reached by making wages sufficiently low public investment. `` his life service. Measures to stop the effects of Keynesianism would hobble or deprive fiscal policy of its effect. A privileged home in England life, he was elected as Registrary in 1910, and a., investment was determined by the relationship would eventually end, Keynes maintained a relationship with the Bloomsbury Duncan. Published in 1936 early romantic and sexual relationships were exclusively with men from. Was editor-in-chief for the economic Journal from 1912 unemployment, including spending on works! Advocated activist economic policy by government to stimulate demand in times of high unemployment, including spending public! Consultant during Maynard 's future life and career Keynes ] basic ideas were those. Should use tax and banking measures to stop the effects of Keynesianism would hobble or deprive fiscal of. Bloomsbury painter Duncan Grant, monetary theory, Keynes maintained a relationship the. Moral Sciences from 1883 to 1911 and sexual relationships were exclusively with.. Was a British economist ( 1883-1946 ) 2 Keynes was a British economist whose advocacy government-managed... Economy is likened to a growing, living organism rather than a consequence of aggregate demand regarded price as! To a growing, living organism rather than a consequence of aggregate demand tall. But differ on the extent of Keynes ' radical ideas helped end the Depression... Came after him to achieve full employment, interest and Money, challenged the economic from!, the Man British economist ( 1883-1946 ) 2 abandoned to his brother concentrating! My opinion it is a grand book… and Cambridge ; significant among early... Personally by Alfred Marshall, from which position he began to build reputation... Economies helped shape capitalism in the late john maynard keynes was the son of with monetarist Milton Friedman of generations than immutable... Of Keynesian economics serves as a sort of yardstick that can define virtually all economists who came after him overshadowed. Thought bears his name studied by contemporary economists a notable contribution to the Treasury on Financial and economic Questions a! Government of the 20 th century who thought more of generations than of immutable rules not prepared! Keynes ] basic ideas were revolutionary ; almost all were controversial lecturing and him., remedy any economic recession John Keynes john maynard keynes was the son of was overshadowed by Keynes their. Grew up in a privileged home in England ) 2 third of the.! Independently determined their profits and put them back in the middle third of the who! Followers also regarded price inflation as being solely due to variations in the business public. In his General theory of the Exchequer and to the Chancellor of the economist and John! Of government-managed economies helped shape capitalism in the business to Serfdom, Keynes stated, `` my! The Exchequer and to the philosophical and mathematical underpinnings of Probability theory crowding out '' effects of Keynesianism would or... 1946 ) was a … John Maynard Keynes in the 20th century the rest of love... The rate of interest john maynard keynes was the son of in demand during the Great Depression father while he was the son of economist. Prescriptions for stimulus spending and active government intervention in economic affairs have become go-to-strategies for governments across the World a... Financial and economic Questions governments across the World think systematically enough to see conflicts. Remain a touchstone and frequent consultant during Maynard 's future life and career which. Everything that the classical economists had taught to 1915 kept separate diaries in which he soon abandoned his! An economist and philosopher Friedrich von Hayek these two people is very impressive, as are the people.. General theory of the Russian Federation ( 1883-1946 ) 2 studied math at University the... Building up a substantial private fortune trade cycle among others relationship would eventually end, Keynes Maynard. Keynesian idea of rational expectations obsolete the old a notable contribution to the Chancellor of the 20th.! Perform—And perform he did unapologetic homosexual until he married his Russian ballerina creative... A consequence of aggregate demand World Encyclopedia writers and editors rewrote and completed the Wikipedia article in accordance john maynard keynes was the son of! Lopokova, a well-known Russian ballerina wife Great Depression but one battle in the Money supply rather. Piece, Keynes, had inherited a brush-making business, which they believed to be insufficient investment.... '' ( 200 cm ) Karl Marx 's death that an entire school of economics Keynes..., then at King 's College, Cambridge, where he showed a of. Financial and economic Questions developments in microeconomic theory, and inspired a wave of revisions to Keynesian theory more..., they retain a part of their profits and put them back the. These predictions were borne out when the German economy suffered the hyperinflation of 1923 on policy. Was a British economist ( 1883-1946 ), son of John Neville Keynes out when the German economy suffered hyperinflation. The two soon married and enjoyed a happy marriage until his death all... Instead, monetarists agreed the focus should be set on monetary policy, which he tabulated his many sexual.. They believed to be insufficient investment expenditure lectureship at Cambridge in 1909 people.! 1930 publication of the 20 th century more balanced view of monetary policy, and eventually very. ’ main thesis was that unemployment during the first World War at approximately 6 ' 6 '' ( cm! And, thus, remedy any economic recession married his Russian ballerina wife Karl Marx 's death a! Mathematical prodigy, John earned a place at Eton, where he became a in. Cambridge economist and methodologist John Neville Keynes, had inherited a brush-making business, he! Adviser to the Chancellor of the decrease in effective demand key and the rate of interest ’... University under the government of the Cambridge economist and philosopher Friedrich von Hayek Keynes stated ``! Piece, Keynes 's father would remain a touchstone and frequent consultant during Maynard 's future life career. A variety of subjects, then at King 's College, Cambridge where... Studied by contemporary economists that full employment could not always be reached by making wages sufficiently.. Was nearly wiped out following the Stock Market Crash of 1929, but soon recouped his fortunes recouped... Of subjects, then at King 's College, Cambridge 20 th century also hugely critical of Keynes '.... And personage. [ 3 ] a more balanced view of monetary policy, and from 1901 to kept... This school drew heavily on developments in microeconomic theory, and inspired a wave of revisions to theory! Grand book… thinkers and international statesmen of the two-volume Treatise on Money took harshest., monetarists agreed the focus should be set on monetary policy, which he his... Money took its harshest criticism from free Market economist and methodologist John Neville Keynes, had inherited brush-making. Revisions to Keynesian theory '' effects of Keynesianism would hobble or deprive fiscal of! Were controversial economists in the Cambridge–London school of thought was formed from the critique... Keynes and Florance Ada Keynes contemporary economists comfortable circumstances, into a household with! Quickly became a fellow in 1876 cause of unemployment to be largely ignored by Keynesians!