For the past year, Duncan Brack and Ed Randall, authors of the Dictionary of Liberal Thought, have kindly agreed to let us publish extracts on Lib Dem Voice. Last month’s instalment was John Maynard Keynes; this month, Keynesianism. You can read previous chapters on LDV here. The entire book is available on Amazon here and can also be bought at the Westminster Bookshop.
Keynesianism
A school of economic thought inspired by the work of John Maynard Keynes, especially his General Theory of Employment, Interest and Money. Keynes’s challenge to the ideas underpinning classical and neo-classical economics, and in particular to the proposition that market economies would always find an equilibrium consistent with the highest possible level of economic output, became the foundation for macroeconomics, and Keynesian ideas came to underpin the economic policy of Western governments for the three decades following the Second World War.
In the General Theory, first published in 1936, John Maynard Keynes (q.v.) challenged the majority of his peers in the economics profession, who had steadfastly rejected his notion that there was any need for a branch of economics that distinguished between the behaviour of individual economic actors and the operation of the economy as a whole.