From what aspects can we know Keynes's contribution to economics?

Keynes is not only the name of a famous British economist, but also a place name. So which country did Keynes belong to?

Cairns, Australia

Cairns is located in northern Australia and is the capital of Queensland. It is the main entrance to the Great Barrier Reef in the east and Cape York Peninsula in the north. It is located in the largest and northernmost part of the east coast of Australia, closest to the Great Barrier Reef. The Great Barrier Reef is one of the seven scenic spots in the world, so Keynes's geographical position is very superior. If you want to go to Thursday Island, Cabindaria Bay in Cape York, Papua New Guinea or the Great Barrier Reef, you must go through Cairns.

This is a beautiful tourist city and one of the most ideal cities in the world. Although Keynes has a tropical climate, the weather here is as warm as spring all year round. The whole city is surrounded by tropical rain forest, full of green and vitality everywhere. At the same time, Keynes is close to the scenic Palm Bay and the famous holiday paradise Port Douglas. Not only that, there are 2000 kilometers of living coral reefs in the waters around Cairns, which is also the largest living coral reef landscape in the world. Famous scenic spots in Keynes include Kullanda, Green Island, fitzpatrick Island, Underwater World Aquarium, Harley Crocodile Farm, Great Barrier Reef and Kiwala Beach. This is a paradise-like tourist city.

In addition to tourism, Keynes's economy is also very developed. Now Cairns has become the commercial center of Queensland and the main export base of "swimming fish". Even most of the fish in China started from Keynes.

As a small town in northern Australia, Keynes is now playing an increasingly important role.

Representative of Keynes

Keynes, an economist, left many economic works to later generations, such as Economic Consequences of Versace Peace Treaty, General Theory of Employment, Interest and Money, Collection of Persuasions and Monetary Theory, among which General Theory of Employment, Interest and Money is the most important and famous representative work of Keynes.

Keynes's masterpiece

Based on the new theory of eliminating social unemployment and overcoming economic depression, this book lays a theoretical foundation for the current capitalist macroeconomics. In the book General Theory of Employment, Interest and Money, Keynes abandoned his early theory of automatic recovery of capitalist economic checks and balances and put forward the idea of state intervention in the economy for the first time. This is a great earthquake in capitalist economy and society. Keynes believed that without the active intervention of the national government, the capitalist economy would perish.

This book reflects many problems, such as serious unemployment and excessive product waste during the Great Western Economic Crisis in the 1930s. In view of these problems, Keynes proposed to alleviate these economic and social contradictions. These suggestions and measures pointed out a bright road for the out-of-control capitalist society at that time, that is, state intervention in the economy.

As soon as it came out, there was a hurricane in the western economy and society, which sensationalized the whole economic circle. Some people think that Keynes's theory of "state intervention in economy" is of great significance, just as Copernicus proposed Heliocentrism and Darwin proposed evolution.

Keynes's masterpiece "General Theory of Employment, Interest and Money" initiated a new era of economics and injected a shot in the arm into the development of western economics.

Keynes's Contribution to Economics

Keynes's contribution to economics is mainly divided into the following six aspects.

A painting by Keynes

First of all, Keynes broke through the traditional equilibrium theory and constructed an economic equilibrium theory characterized by unemployment. In the General Theory of Employment, Interest and Money, Keynes criticized the assumption of full employment based on Said's law in traditional economic theory. He believes that there is involuntary unemployment in capitalist society. Based on this, he put the macroeconomic problem of resource utilization in the first place.

Secondly, Keynes regards national income as the central issue of macroeconomic research. He believes that in the economy, the number of columns required is closely related to the output of employment, and the reasons for unemployment should be studied before determining the total employment.

Thirdly, Keynes thought that the total supply and demand balance should be used to analyze the decision of national income in economic activities.

The fourth contribution is that Keynes adopted a short-term analysis method and established a macroeconomic framework model with aggregate demand as the core. He assumes that in economic activities, production equipment, capital, technology and other factors remain unchanged, which directly shows that the total social supply remains unchanged. On this basis, he analyzed how the total social demand determines the national income. The conclusion is that unemployment exists because of insufficient total demand.

Fifthly, Keynes analyzed the real economy and monetary economy in the real society and established a set of monetary production theory. Through this theory, we can analyze the relationship between money and interest rate and their influence on the whole macro-economy.

Finally, Keynes's most important economic contribution is to criticize the laissez-faire economic policy and put forward the idea of state intervention in the economy. This economic theory has been used for reference by many governments and has become the hottest economic theory in the 20th century.

Keynes's contribution to economics is mainly reflected in the above six points, through which Keynes can be proved to be a great economist.