What would Keynes do? [antikvár]

InfroducfionAlthough economic issues have been around since the dawn of time, economics as a distinct and influential subject only really emerged in the late 18th century as society moved from an agrarian economy to the brave new world of Industrial capitalism. Pioneers such as Adam Smith and David Ricardo reflected on this period of rapid change and examined fundamental aspects of the economy, such as free markets and international trade. This led to a basic economic framework, known as classical economics.However, though economists may agree on some fundamentals, the subject attracts a huge diversity of opinion on how we should harness the power of economic forces. Indeed, any particular economic problem can be seen from very different perspectives - if there is one thing that unites economists, it is the awareness that there is always another point of view.One of the most influential economists of the 20th century was John Maynard Keynes. An original thinker, brilliant intellect and man of supreme self-confidence, he came into his own during the crisis of the 1930s Great Depression. While many floundered and wondered why economic theories were not working like they were supposed to, Keynes threw out the textbooks and came up with his own. His General Theory of Employment, Interest and Money was dense, hard to read and not without inherent contradictions, but his vision enabled him to view economics from a fresh perspective, seeing how governments could play a role in stabilizing the temperamental forces ofcapitalism. Keynes was one of the most brilliant economists of the century, though not without his ardent critics.More than moneyAs a general rule, economics is concerned with such matters as economic growth, industrial efficiency and inflation - the kind of issues that can seem peripheral to our daily lives.Yet in recent decades, some economists have broadened the scope of the subject and tried to apply its ideas to aspects of everyday life, from crime and punishment to family Hfe and the ethics of queue-jumping. The Nobel Laureate Gary Becker was particularly influential in pushing the boundaries and showing how economics could potentially illuminate seemingly mundane life choices.This new strand of applied economics has been complemented by the rise of behavioural economics, a field that has blurred the boundaries with other social sciences. By examining how psychological and social influences impact our economic