John Maynard Keynes: Difference between revisions
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1883-1946. Economist. Member of the [[Bloomsbury Group]]. | 1883-1946. Economist. Member of the [[Bloomsbury Group]]. | ||
The theories of the British economist John Maynard Keynes have influenced theoretical discussions and the economy policy all over the world. His name is connected with what is called "macroeconomics" today. Two of his suggestions were especially effective: the use of varying exchange rates as means of economy policy | The theories of the British economist John Maynard Keynes have influenced theoretical discussions and the economy policy all over the world. His name is connected with what is called "macroeconomics" today. Two of his suggestions were especially effective: the use of varying exchange rates as means of economy policy and the recommendation to fight unemployment with limited inflation. After 1918, he fought the [[Treaty of Versailles]] and the allied reparation policy. | ||
== Childhood and Youth == | == Childhood and Youth == | ||
John Maynard Keynes was born in Cambridge on June 5, 1883. Keynes grew up in Victorian and Edwardian times; prices and interest rates were relatively stable. His childhood was formed by his father, John Neville Keynes, a philosopher, economist and administrator at university and his mother, Florence Ada, an early graduate of Cambridge University, active member of charity and later | John Maynard Keynes was born in Cambridge on June 5, 1883. Keynes grew up in Victorian and Edwardian times; prices and interest rates were relatively stable. His childhood was formed by his father, John Neville Keynes, a philosopher, economist and administrator at university and his mother, Florence Ada, an early graduate of Cambridge University, active member of charity and later mayor of the city. Keynes was the oldest of three siblings. Already at the age of four and a half, Keynes replied when asked what interest is: “If I let you have a halfpenny and you kept it a very long time, you would have to give me back that halfpenny and another too. That is interest” (Sills 114). | ||
His upbringing was traditionally upper class: nanny, kindergarten, elementary school, followed by Eton and classical and mathematical studies at King’s College, Cambridge. His mathematics teacher saw him as talented, but also remarked his lack of patience when difficulties arose. During his school time he won several prizes, e.g. Eton’s Junior Mathematical Prize (1898), Eton's Senior Prize (1900). At King’s College, he engaged in several debating and intellectual societies, which were to shape him more than his formal studies (amongst them the Cambridge Apostles). His later development was clearly influenced by his membership in the [[Bloomsbury Group]]. He was also an active sportsman. In the final examinations, he scored 12th. | |||
== War == | == War == | ||
1916, the Government introduced the official duty for all men age 18 | 1916, the Government introduced the official duty to serve in the army for all men age between 18 and 41. As an officer at the Financial Ministry, Keynes was excluded from this regulation; for reasons of conscience he applied for dispensation. But for his fellow members from the [[Bloomsbury Group]], his engagement in financing the war was already too much. His way to protest was to lay down his office and to write ''The Economic Consequences of the Peace''. | ||
== Global Economic Crisis == | == Global Economic Crisis == | ||
1919, the global economic crisis hit Britain and a | 1919, the global economic crisis hit Britain and a Coalition Government which was not up to this situation. From 1931-1935, a National Government was formed under Labour Premier [[Ramsay McDonald]], involving liberal and conservative ministers. During this phase, the influence of Keynes’ theories was noticeable. Contrary to the traditional theory of budget consolidation, the Government prioritised the establishment of jobs through public projects. | ||
== Marriage == | == Marriage == | ||
In 1925, he married Lydia Lopakowa (1892-1981), a Russian ballet dancer. | In 1925, he married Lydia Lopakowa (1892-1981), a Russian ballet dancer. He did, however, also have homosexual relationships. | ||
== Economic Ideas & Writings == | |||
When [[Winston Churchill]], Chancellor of the Exchequer, reintroduced the gold standard in 1929, it was seen as a step back towards Britain’s old economic reputation. This was welcomed across the board but by Keynes. Already in 1919, he had warned about the ''Economic Consequences of the Peace'', claiming that the reparations demanded by Versailles were excessive. Now, he warned about the “Economic Consequences of Mr Churchill” (Brüggemeier, 139). Meaning that as a matter of principle the return to the gold standard was appropriate, but the fixed exchange rate was too high and would be an additional burden for the already weakened economy. | |||
Keynes picked up the idea of underconsumption, which was introduced around 1890 by the economist [[John A. Hobson]]. It said that in a capitalist economy the production increases faster than the demand. Under the influence of the global economic crisis, Keynes worked out his thoughts and pleas for an increase in the demand during crisis situations. | |||
Keynes picked up the idea of underconsumption, which was introduced around 1890 by the economist [[John A. Hobson]]. It said that in a capitalist economy the production increases faster than the demand. Under the influence of the global economic crisis, Keynes worked out his thoughts and | |||
Keynes, who was familiar with the economic difficulties of Britain, noticed: “We are a great nation, but if we continue to behave like a Great Power, we shall soon cease to be a great nation” (Brüggemeier 230). But this only seems to be logical at first glance because although Britain was no longer a world power after the First World War, it was still a great power and superior to the other European states which were struck even harder. | |||
== Ministry of Finance == | == Ministry of Finance == | ||
In July 1940, Keynes was nominated special adviser of the Ministry of Finance. From then, his arguments got a bigger audience and he could introduce his new budget, which did not only list the income and expenditure of the | In July 1940, Keynes was nominated special adviser of the Ministry of Finance. From then, his arguments got a bigger audience and he could introduce his new budget, which did not only list the income and expenditure of the government but included additional data. This was an important base for the establishment of the [[Welfare State]] in 1945. In 1945, Keynes negotiated an agreement with the USA and Canada; this credit allowed Britain to meet the most important responsibilities. | ||
== Ennoblement == | == Ennoblement == | ||
In 1942, | In 1942, Keynes was ennobled Lord Keynes or Baron Keynes of Tilton. | ||
== Health == | == Health == | ||
Already during his early school years, Keynes suffered from ill health, keeping him away from classes. These | Already during his early school years, Keynes suffered from ill health, keeping him away from classes. These illnesses recur during his further education, and in 1937, he suffered his first heart attack, followed by another serious illness. After he was awarded the Order of Merit and became a member of the [[Royal Society]], Keynes died on April 21, 1946 in Tilton, Sussex of heart failure. | ||
== Selection of his Publications == | == Selection of his Publications == | ||
| Line 69: | Line 51: | ||
*'''1936''' ''The General Theory of Employment, Interest and Money'' | *'''1936''' ''The General Theory of Employment, Interest and Money'' | ||
*'''1940''' ''How to Pay for the War'' | *'''1940''' ''How to Pay for the War'' | ||
== Sources == | == Sources == | ||
*Brüggemeier, Franz-Josef. ''Geschichte Großbrittaniens im 20. Jahrhundert''. München: C.H.Beck, 2010. | *Brüggemeier, Franz-Josef. ''Geschichte Großbrittaniens im 20. Jahrhundert''. München: C.H. Beck, 2010. | ||
*Maurer, Michael. ''Kleine Geschichte Englands''. Stuttgart: Reclam, 2007. | *Maurer, Michael. ''Kleine Geschichte Englands''. Stuttgart: Reclam, 2007. | ||
*Moggridge, Donald. ''John Maynard Keynes''. München: dtv, 1977. | *Moggridge, Donald. ''John Maynard Keynes''. München: dtv, 1977. | ||
Latest revision as of 09:10, 3 May 2017
1883-1946. Economist. Member of the Bloomsbury Group.
The theories of the British economist John Maynard Keynes have influenced theoretical discussions and the economy policy all over the world. His name is connected with what is called "macroeconomics" today. Two of his suggestions were especially effective: the use of varying exchange rates as means of economy policy and the recommendation to fight unemployment with limited inflation. After 1918, he fought the Treaty of Versailles and the allied reparation policy.
Childhood and Youth
John Maynard Keynes was born in Cambridge on June 5, 1883. Keynes grew up in Victorian and Edwardian times; prices and interest rates were relatively stable. His childhood was formed by his father, John Neville Keynes, a philosopher, economist and administrator at university and his mother, Florence Ada, an early graduate of Cambridge University, active member of charity and later mayor of the city. Keynes was the oldest of three siblings. Already at the age of four and a half, Keynes replied when asked what interest is: “If I let you have a halfpenny and you kept it a very long time, you would have to give me back that halfpenny and another too. That is interest” (Sills 114).
His upbringing was traditionally upper class: nanny, kindergarten, elementary school, followed by Eton and classical and mathematical studies at King’s College, Cambridge. His mathematics teacher saw him as talented, but also remarked his lack of patience when difficulties arose. During his school time he won several prizes, e.g. Eton’s Junior Mathematical Prize (1898), Eton's Senior Prize (1900). At King’s College, he engaged in several debating and intellectual societies, which were to shape him more than his formal studies (amongst them the Cambridge Apostles). His later development was clearly influenced by his membership in the Bloomsbury Group. He was also an active sportsman. In the final examinations, he scored 12th.
War
1916, the Government introduced the official duty to serve in the army for all men age between 18 and 41. As an officer at the Financial Ministry, Keynes was excluded from this regulation; for reasons of conscience he applied for dispensation. But for his fellow members from the Bloomsbury Group, his engagement in financing the war was already too much. His way to protest was to lay down his office and to write The Economic Consequences of the Peace.
Global Economic Crisis
1919, the global economic crisis hit Britain and a Coalition Government which was not up to this situation. From 1931-1935, a National Government was formed under Labour Premier Ramsay McDonald, involving liberal and conservative ministers. During this phase, the influence of Keynes’ theories was noticeable. Contrary to the traditional theory of budget consolidation, the Government prioritised the establishment of jobs through public projects.
Marriage
In 1925, he married Lydia Lopakowa (1892-1981), a Russian ballet dancer. He did, however, also have homosexual relationships.
Economic Ideas & Writings
When Winston Churchill, Chancellor of the Exchequer, reintroduced the gold standard in 1929, it was seen as a step back towards Britain’s old economic reputation. This was welcomed across the board but by Keynes. Already in 1919, he had warned about the Economic Consequences of the Peace, claiming that the reparations demanded by Versailles were excessive. Now, he warned about the “Economic Consequences of Mr Churchill” (Brüggemeier, 139). Meaning that as a matter of principle the return to the gold standard was appropriate, but the fixed exchange rate was too high and would be an additional burden for the already weakened economy.
Keynes picked up the idea of underconsumption, which was introduced around 1890 by the economist John A. Hobson. It said that in a capitalist economy the production increases faster than the demand. Under the influence of the global economic crisis, Keynes worked out his thoughts and pleas for an increase in the demand during crisis situations.
Keynes, who was familiar with the economic difficulties of Britain, noticed: “We are a great nation, but if we continue to behave like a Great Power, we shall soon cease to be a great nation” (Brüggemeier 230). But this only seems to be logical at first glance because although Britain was no longer a world power after the First World War, it was still a great power and superior to the other European states which were struck even harder.
Ministry of Finance
In July 1940, Keynes was nominated special adviser of the Ministry of Finance. From then, his arguments got a bigger audience and he could introduce his new budget, which did not only list the income and expenditure of the government but included additional data. This was an important base for the establishment of the Welfare State in 1945. In 1945, Keynes negotiated an agreement with the USA and Canada; this credit allowed Britain to meet the most important responsibilities.
Ennoblement
In 1942, Keynes was ennobled Lord Keynes or Baron Keynes of Tilton.
Health
Already during his early school years, Keynes suffered from ill health, keeping him away from classes. These illnesses recur during his further education, and in 1937, he suffered his first heart attack, followed by another serious illness. After he was awarded the Order of Merit and became a member of the Royal Society, Keynes died on April 21, 1946 in Tilton, Sussex of heart failure.
Selection of his Publications
- 1919 The Economic Consequences of the Peace
- 1921 A Treatise of Probability
- 1922 A Revision of the Treaty
- 1923 A Tract on Monetary Reform
- 1925 Am I Liberal?
- 1930 A Treatise on Money
- 1936 The General Theory of Employment, Interest and Money
- 1940 How to Pay for the War
Sources
- Brüggemeier, Franz-Josef. Geschichte Großbrittaniens im 20. Jahrhundert. München: C.H. Beck, 2010.
- Maurer, Michael. Kleine Geschichte Englands. Stuttgart: Reclam, 2007.
- Moggridge, Donald. John Maynard Keynes. München: dtv, 1977.
- Sills, David L. and Merton, Robert K., ed. Social Science Quotations. Who said What, When, and Where. New Jersey: Transaction Publishers, 2000.
- John Maynard Keynes. Timeline. http://www.maynardkeynes.org/keynes-career-timeline.html December 6, 2011