'John Maynard Keynes, the Father of Modern Theoretical Economics Essay\r'

' jakes Maynard Keynes (5 June 1883 †21 April 1946), a British economist cognize also as the father of modern theoretical sparings, had made a great impact on contemporary economic as well as political theory. His ideas were tapped by governments for their fiscal policies. He is most well known on his interventionist policy when it comes to fiscal and m iodintary measures, specific altogethery, to diminish the undesirable effect of recessions, depressions, and even booms.\r\nAn article from beat magazine on the 100 Most of the essence(p) People of the Century, contend that â€Å"[h]is radical idea that governments should pass on money they don’t have may have saved capitalism” (Reich, no date). As an economist, his first share of international fame was when he was selected as a delegate of the Paris Peace host of 1918â€1919. It was during this conference that the victors of the origination War 1 (specifically, Woodrow Wilson, Georges Clemenceau, and Dav id Lloyd George) enforce war reparations on Germany. Keynes held his tongue during the conference and let out a roar as soon as he returned to England (Reich, no date).\r\nHe wrote a playscript entitled The Economic Consequences of Peace. He wrote that the Germans would non be able to pay the victors. He called Wilson a â€Å"blind, deaf Don Quixote”, Clemenceau a xenophobe with â€Å"one illusion †France, and one disillusion †mankind”, and Lloyd George a â€Å"goat-footed bard, this half-human visitor to our age from the hag-ridden magic and enchant woods of Celtic antiquity. ” Keynes predicted that the reparations demanded by the victors would keep Germany necessitous and might ultimately threaten the neighboring countries if not all of Europe (Reich, no date).\r\nAnd we know that he is indeed right as if it was a prophecy. The volume sold almost a hundred kB copies on that period. But it was only later on after three decades that the real effe ct of his treatise was felt. subsequently the end of World War II, both US and Britain (as victors of the war) remembered Keynes’ admonition. The best way to attain a long-lived peace is by helping the vanquished start all over again †public investing to clear trading partners and building solid democracies (like n the solecism of Germany, Italy, and Japan during that war; Reich, no date).\r\nKeynes founded that branch of economic science that is termed â€Å"macroeconomics” today. This is his greatest influence in the history of economics. This in truth came from a book he wrote during the depths of the Great Depression. The book was called â€Å"The general theory of employment, interest and money” (published on 1936). The idea is pretty much easy to deduce: Governments should not leave the market alone when, and especially, the frugality is running slow (interventionist policy of the government).\r\nIt is during periods of dull parsimony or reces sion that markets are saturated and occupationes e rattling do not invest or sink their investment. Such situation, according to Keynes, is a prologue for a very dangerous cycle: â€Å"less(prenominal) investment, fewer jobs, less consumption and even less reason for business to invest” (Keynes, in Wikipedia, The Free Encyclopedia). In 1942, John Maynard Keynes was raised to the House of Lords and was accord the title male monarch Keynes of Tilton, County of Sussex.\r\nKeynes played a crucial role in the negotiations that transpired in the creation of the Bretton Woods body (the system/conference that created the World situate, International Monetary Fund, and the World Trade Organization, as we know it today). He was the lead of the British Commission and the chairman of the World Bank Commission. He was the brainchild behind the management of currencies in the midst of and among countries. He advocated the creation of a world central bank, the International Clearing Union, that will be prudent for the common world currency unit (Reich, no date; Keynes, in Wikipedia, The Free Encyclopedia).\r\n'