A great economist

We have talked about leading clever people, B players and preventing poor performance in the last few blogs.

I was reviewing my old notes and then decided to check out what great economists had to say. Next week, we will see a quote from someone opposed to Keynes but for this week, I thought this quote from a great economist may make sense:

"With the General Theory, as it became known, Keynes sought to develop a theory that could explain the determination of aggregate output - and as a consequence, employment.

He posited that the determining factor to be aggregate demand. Among the revolutionary concepts initiated by Keynes was the concept of a demand-determined equilibrium wherein

- unemployment is possible,
- the ineffectiveness of price flexibility to cure unemployment,
- a unique theory of money based on "liquidity preference",
- the introduction of radical uncertainty and expectations,
- the marginal efficiency of investment schedule breaking Say's Law (and thus reversing the savings-investment causation),
- the possibility of using government fiscal and monetary policy to help eliminate recessions and control economic booms."

This book by Keynes almost single-handedly constructed the fundamental relationships and ideas behind what became known as "macroeconomics".

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