General Theory of Employment

Analysis of Keynes 'economic approach in the context of India Keynes' relevance in the Indian context depends on arguments between various economists and conferences, from independence to license acquisition, neoliberalism, neoliberalism It has been questioned in the same way. In the economic structure. According to general employment theory, correlation between interest rates and currencies can be ignored in low-developed countries such as India. According to Keynes he believes that these economies will not suffer unwilling unemployment based on his understanding.

John Maynard Keynes criticized the theory of monetary quantities in "General Theory of Employment, Interests and Money". Keynes was originally a supporter of the theory, but he proposed another option in general theory. Keynes believes that the price level does not strictly depend on the money supply. Money supply changes can affect actual variables such as production volume.

Keynes tried to develop a theory that can explain the determination of the total production in "general theory of employment, interest, money." Thereby solving employment problems. He thinks that the decision factor is total demand. Keynes is unable to unemploy, price flexibility can not solve unemployment, monetary theory based on "liquidity preference", introduction of fundamental uncertainty and expectation, demand equalization called marginal efficiency of investment plan I created a concept. Use the government's fiscal and monetary policy to eliminate the possibility of economic downturn and economic prosperity. This brought about the so-called Keynesian revolution and divided the world of economics into two generations. A young man who supported Keynes and an old man who accused his theory. John Maynard Keynes answered most of the critics in a series of articles in 1937. He helped to extend some of the important aspects of his theory.

Keynes 'main work, "General Theory of Employment, Interest, and Money" was published in 1936 and serves as a theoretical foundation for Keynes' interventionist policy to combat the economic downturn. "General theory" challenged the former neoclassical economic paradigm that the market claimed naturally to establish full employment equilibrium without government intervention. Classical economists believe in the law of Say simply saying "Supply produces their own needs", and in the free market, workers are always willing to lower their wages to a level where employers can provide employment opportunities is there. One of Keynes' innovations is the concept of stickiness of price. This recognizes that even though classical economists consider it reasonable, workers often refuse to reduce wage requirements. It is these plants and people that can buy it. "