THE CONTRIBUTION OF J. M. KEYNES TO THE ANALYSIS OF THE PSYCHOLOGICAL MOTIVES OF ECONOMIC BEHAVIOR
The article examines the contribution of John Maynard Keynes to the study of the psychological motives of economic behavior. The origins of the analysis of the psychological motives in economics before Keynes are reviewed. The relative importance of rational and irrational motives of economic behavi...
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| Language: | English |
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MGIMO University Press
2016-06-01
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| Series: | Vestnik MGIMO-Universiteta |
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| Online Access: | https://www.vestnik.mgimo.ru/jour/article/view/548 |
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| author | M. A. Kozlova |
| author_facet | M. A. Kozlova |
| author_sort | M. A. Kozlova |
| collection | DOAJ |
| description | The article examines the contribution of John Maynard Keynes to the study of the psychological motives of economic behavior. The origins of the analysis of the psychological motives in economics before Keynes are reviewed. The relative importance of rational and irrational motives of economic behavior in the Keynesian theory is analyzed. It is shown that Keynes's analysis of the behavior of the economic agents under uncertainty and the lack of information contributed to the elaboration of the bounded rationality theory by Simon. The article also describes the input of Keynes to the formation of a new «Keynesian» model of human behavior, which implies the importance of expectations, taking into account the psychological and social factors of economic behavior. The main psychological tendencies in the actions of the consumers and investors described by Keynes (the basic psychological law, liquidity preference, the influence of the «market psychology» on the investor's decisions) and their relevance nowadays are examined. The article shows further development of the ideas of Keynes in the Akerlof and Shiller's theory of animal spirits and in the financial instability hypothesis of Minsky. It also gives a description of a confidence multiplier, introduced by Akerlof and Shiller, and shows how the cosumers' confidence can be measured nowadays. Besides, the article stresses that the study of the psychological motives of economic behavior, undertaken by Keynes, contributed to the development of such new disciplines at the interface between the economy and psychology as the economic psychology and behavioral economics. |
| format | Article |
| id | doaj-art-4168c076e6e8486cb462487a1e289e07 |
| 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-4168c076e6e8486cb462487a1e289e072025-01-30T12:16:14ZengMGIMO University PressVestnik MGIMO-Universiteta2071-81602541-90992016-06-0103(48)18819510.24833/2071-8160-2016-3-48-188-195548THE CONTRIBUTION OF J. M. KEYNES TO THE ANALYSIS OF THE PSYCHOLOGICAL MOTIVES OF ECONOMIC BEHAVIORM. A. Kozlova0Moscow State Institute of International Relations (University)The article examines the contribution of John Maynard Keynes to the study of the psychological motives of economic behavior. The origins of the analysis of the psychological motives in economics before Keynes are reviewed. The relative importance of rational and irrational motives of economic behavior in the Keynesian theory is analyzed. It is shown that Keynes's analysis of the behavior of the economic agents under uncertainty and the lack of information contributed to the elaboration of the bounded rationality theory by Simon. The article also describes the input of Keynes to the formation of a new «Keynesian» model of human behavior, which implies the importance of expectations, taking into account the psychological and social factors of economic behavior. The main psychological tendencies in the actions of the consumers and investors described by Keynes (the basic psychological law, liquidity preference, the influence of the «market psychology» on the investor's decisions) and their relevance nowadays are examined. The article shows further development of the ideas of Keynes in the Akerlof and Shiller's theory of animal spirits and in the financial instability hypothesis of Minsky. It also gives a description of a confidence multiplier, introduced by Akerlof and Shiller, and shows how the cosumers' confidence can be measured nowadays. Besides, the article stresses that the study of the psychological motives of economic behavior, undertaken by Keynes, contributed to the development of such new disciplines at the interface between the economy and psychology as the economic psychology and behavioral economics.https://www.vestnik.mgimo.ru/jour/article/view/548john maynard keynespsychological motives of economic behaviorgeorge akerlof and robert shiller’s theory of animal spiritsfinancial instability hypothesis of hyman minskybasic psychological lawconfidence multipliereconomic psychology«keynesian» model of human behavior bounded rationality theorymarket psychology |
| spellingShingle | M. A. Kozlova THE CONTRIBUTION OF J. M. KEYNES TO THE ANALYSIS OF THE PSYCHOLOGICAL MOTIVES OF ECONOMIC BEHAVIOR Vestnik MGIMO-Universiteta john maynard keynes psychological motives of economic behavior george akerlof and robert shiller’s theory of animal spirits financial instability hypothesis of hyman minsky basic psychological law confidence multiplier economic psychology «keynesian» model of human behavior bounded rationality theory market psychology |
| title | THE CONTRIBUTION OF J. M. KEYNES TO THE ANALYSIS OF THE PSYCHOLOGICAL MOTIVES OF ECONOMIC BEHAVIOR |
| title_full | THE CONTRIBUTION OF J. M. KEYNES TO THE ANALYSIS OF THE PSYCHOLOGICAL MOTIVES OF ECONOMIC BEHAVIOR |
| title_fullStr | THE CONTRIBUTION OF J. M. KEYNES TO THE ANALYSIS OF THE PSYCHOLOGICAL MOTIVES OF ECONOMIC BEHAVIOR |
| title_full_unstemmed | THE CONTRIBUTION OF J. M. KEYNES TO THE ANALYSIS OF THE PSYCHOLOGICAL MOTIVES OF ECONOMIC BEHAVIOR |
| title_short | THE CONTRIBUTION OF J. M. KEYNES TO THE ANALYSIS OF THE PSYCHOLOGICAL MOTIVES OF ECONOMIC BEHAVIOR |
| title_sort | contribution of j m keynes to the analysis of the psychological motives of economic behavior |
| topic | john maynard keynes psychological motives of economic behavior george akerlof and robert shiller’s theory of animal spirits financial instability hypothesis of hyman minsky basic psychological law confidence multiplier economic psychology «keynesian» model of human behavior bounded rationality theory market psychology |
| url | https://www.vestnik.mgimo.ru/jour/article/view/548 |
| work_keys_str_mv | AT makozlova thecontributionofjmkeynestotheanalysisofthepsychologicalmotivesofeconomicbehavior AT makozlova contributionofjmkeynestotheanalysisofthepsychologicalmotivesofeconomicbehavior |