Book contents
- Frontmatter
- 1 A cunning purchase: the life and work of Maynard Keynes
- 2 The Keynesian revolution
- 3 Keynes and the birth of modern macroeconomics
- 4 Keynes as a Marshallian
- 5 Doctor Keynes: economic theory in a diagnostic science
- 6 Keynes and British economic policy
- 7 Keynes and Cambridge
- 8 Keynes and his correspondence
- 9 Keynes and philosophers
- 10 Keynes’s political philosophy
- 11 Keynes and probability
- 12 The art of an ethical life: Keynes and Bloomsbury
- 13 Keynes and ethics
- 14 Keynes between modernism and post-modernism
- 15 Keynes and Keynesianism
- Bibliography
- Index
3 - Keynes and the birth of modern macroeconomics
Published online by Cambridge University Press: 28 November 2006
- Frontmatter
- 1 A cunning purchase: the life and work of Maynard Keynes
- 2 The Keynesian revolution
- 3 Keynes and the birth of modern macroeconomics
- 4 Keynes as a Marshallian
- 5 Doctor Keynes: economic theory in a diagnostic science
- 6 Keynes and British economic policy
- 7 Keynes and Cambridge
- 8 Keynes and his correspondence
- 9 Keynes and philosophers
- 10 Keynes’s political philosophy
- 11 Keynes and probability
- 12 The art of an ethical life: Keynes and Bloomsbury
- 13 Keynes and ethics
- 14 Keynes between modernism and post-modernism
- 15 Keynes and Keynesianism
- Bibliography
- Index
Summary
KEYNES AND MACROECONOMICS
Keynes's General Theory of Employment, Interest and Money (1936) was about the role of the monetary system in general, and the rate of interest in particular, in causing the overall level of employment in a market economy to fall short of its full potential. A sub-set of its ideas were systematized by a younger generation of economists and introduced to the textbooks, just as the word macroeconomics began to be widely used to distinguish the analysis of the economy as a whole from microeconomics, which dealt with individual households, firms or even industries. Not without justification, macroeconomics soon became a synonym for Keynesian economics; and in the late 1970s, when the influence of Keynes's specific ideas on the sub-discipline had long since waned, he was still commonly credited with having founded it (Lucas and Sargent, 1978).
- Type
- Chapter
- Information
- The Cambridge Companion to Keynes , pp. 39 - 57Publisher: Cambridge University PressPrint publication year: 2006
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