Question: Who is known as the founding father of Macroeconomics as a separate discipline?
Options:
John Maynard Keynes
Amartya Sen
Karl Marx
Adam Smith
John Maynard Keynes is known as the founding father of Macroeconomics as a separate discipline.
He was born on June 5, 1883, in Cambridge.
He completed his degree in Mathematics and had also joined Civil Services in Britain.
He represented the British Treasury at the Conference of Versailles but resigned because he was against the heavy fine levied on Germany.
He expressed his concerns about the fine imposed on Germany in his book 'The Economic Consequences of Peace'.
🛑Important Points:
Keynesian Economics
In 1923, he published a book 'A Tract on Monetary Reform'. 'The General Theory of Employment, Interest and Money' published in 1936 made a revolutionary change in economics as a subject.
The book mainly focussed on two aspects employment and effective demand.
According to him, increasing employment will lead to more people buying more goods and hence demand will increase leading to economic progress.
He also stated that without the government's intervention full employment cannot be achieved.