“GENERAL THEORY” OF J.M. KEYNES: 80 YEARS AFTER
The Keynes' "General Theory", published 80 years ago, overthrew the neoclassical orthodoxy and created a new understanding of how market economy works. The main idea of the "General Theory" is that the amount of employment depends on the level of effective demand. Keynes bel...
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MGIMO University Press
2016-06-01
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| Online Access: | https://www.vestnik.mgimo.ru/jour/article/view/546 |
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| author | A. V. Kholopov |
| author_facet | A. V. Kholopov |
| author_sort | A. V. Kholopov |
| collection | DOAJ |
| description | The Keynes' "General Theory", published 80 years ago, overthrew the neoclassical orthodoxy and created a new understanding of how market economy works. The main idea of the "General Theory" is that the amount of employment depends on the level of effective demand. Keynes believed that much economic activity is governed by "animal spirits" because of the existence of inescapable uncertainty about the future. In Keynes' view these "animal spirits" are the main cause for economic fluctuations. The uncertainty and "animalspirits"make investments unstable. He made distinction between risk (which is measurable) and uncertainty (which is not). This is the reason why Keynes opposed the excessive mathematicization of economics. His another important impact on economics was to switch the focus of economic analysis from the long run to the short term. The message of "General Theory" was that government should manage demand to limit economic fluctuations. The role Keynes gave the state was essentially to reduce uncertainty and to make economy more predictable. |
| format | Article |
| id | doaj-art-1f9a4ab4e2574446939a2b56789d088d |
| institution | Kabale University |
| issn | 2071-8160 2541-9099 |
| language | English |
| publishDate | 2016-06-01 |
| publisher | MGIMO University Press |
| record_format | Article |
| series | Vestnik MGIMO-Universiteta |
| spelling | doaj-art-1f9a4ab4e2574446939a2b56789d088d2025-01-30T12:16:14ZengMGIMO University PressVestnik MGIMO-Universiteta2071-81602541-90992016-06-0103(48)16317110.24833/2071-8160-2016-3-48-163-171546“GENERAL THEORY” OF J.M. KEYNES: 80 YEARS AFTERA. V. Kholopov0Moscow State Institute of International Relations (University)The Keynes' "General Theory", published 80 years ago, overthrew the neoclassical orthodoxy and created a new understanding of how market economy works. The main idea of the "General Theory" is that the amount of employment depends on the level of effective demand. Keynes believed that much economic activity is governed by "animal spirits" because of the existence of inescapable uncertainty about the future. In Keynes' view these "animal spirits" are the main cause for economic fluctuations. The uncertainty and "animalspirits"make investments unstable. He made distinction between risk (which is measurable) and uncertainty (which is not). This is the reason why Keynes opposed the excessive mathematicization of economics. His another important impact on economics was to switch the focus of economic analysis from the long run to the short term. The message of "General Theory" was that government should manage demand to limit economic fluctuations. The role Keynes gave the state was essentially to reduce uncertainty and to make economy more predictable.https://www.vestnik.mgimo.ru/jour/article/view/546keynesian economicskeynesian revolutionmacroeconomicsmacroeconomic policyuncertaintyanimal spiritseffective demandsavingsinvestmentsmultipliershort run analysis |
| spellingShingle | A. V. Kholopov “GENERAL THEORY” OF J.M. KEYNES: 80 YEARS AFTER Vestnik MGIMO-Universiteta keynesian economics keynesian revolution macroeconomics macroeconomic policy uncertainty animal spirits effective demand savings investments multiplier short run analysis |
| title | “GENERAL THEORY” OF J.M. KEYNES: 80 YEARS AFTER |
| title_full | “GENERAL THEORY” OF J.M. KEYNES: 80 YEARS AFTER |
| title_fullStr | “GENERAL THEORY” OF J.M. KEYNES: 80 YEARS AFTER |
| title_full_unstemmed | “GENERAL THEORY” OF J.M. KEYNES: 80 YEARS AFTER |
| title_short | “GENERAL THEORY” OF J.M. KEYNES: 80 YEARS AFTER |
| title_sort | general theory of j m keynes 80 years after |
| topic | keynesian economics keynesian revolution macroeconomics macroeconomic policy uncertainty animal spirits effective demand savings investments multiplier short run analysis |
| url | https://www.vestnik.mgimo.ru/jour/article/view/546 |
| work_keys_str_mv | AT avkholopov generaltheoryofjmkeynes80yearsafter |