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The General Theory of Employment, Interest and Money by John Maynard Keynes was first published in 1936, and had a lasting impact on both economic theory and state economic policies. Keynes’s primary aim was to challenge certain aspects of classical economics which were accepted as fact at the time, namely Say’s law, which states that supply will create its own demand, and the assumption that free markets automatically tend towards full employment. Keynes introduced several revolutionary concepts in this book, including effective demand, the propensity to consume, the investment multiplier and the liquidity-preference, to support his arguments in favour of greater state interventionism as a response to financial crises.
***This book review and analysis is perfect for: ***
• Anyone interested in the history of economic theory, particularly macroeconomics
• Anyone who wants to understand the aims of state intervention in the financial market
• Students of, or anyone interested in, modern politics and economics
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