The Contributions of Adam Smith and John M Keynes to the Study of Economics

As you know today, Adam Smith is the founder of economics. His idea formed a modern concept of market economy and the state and its related role. Smith has built a knowledge framework to explain the free market (still applicable today) and free laissez-raism. Both are related to the basic theme of economic growth. Smith's analysis is not limited to showing the interrelationship between the various elements of a continuous maintenance system. It also explains how the system brings about sustained wealth accumulation.

If you have a rock star in economics, that is John Maynard Keynes. Keynes who is the founder of the Communist Party of the Death of Karl Marx and shares his birthday with Adam Smith who was born in 1883 on June 5. These auspicious signs the world is faced with a crucial choice between communism and capitalism, and Keynes seems to be destined to become a powerful free market force. Instead, he proposed a third way to overthrow the world of economics. In this article we will examine the doctrine of Keynes and its meaning.

If Adam Smith is the father of economics, John Maynard Keynes is the founder of macroeconomics. While some of the concepts of modern macroeconomics are rooted in the late 19th and early 20th century, Irving Fisher and Kwon Kwong Sul Searl and other scholars of work, but clear discipline is " Employment, interest, money is common as it began with masterpieces of Keynesian Macroeconomics 1936. The main concern is the instability of the entire variable goods, labor, finance - - balancing Keynes is 3 To introduce one mutual market, early economics focused on the balance of individual markets, he also introduced 'an imbalance of economics' which is a clear deviation from the study of general equilibrium Did. His method has been accepted by other famous economists and has developed rapidly into what is now called macroeconomics.

In the 20th century, the world has a new perspective on economic policy. John Maynard Keynes brought these ideas. His thinking contradicted Adam Smith 's way of thinking. Keynes agreed with government intervention that dominates the economy. The government can be used as a tool to prevent inflation and economic recession. If the problem stops before the start, invisible hands have no chance to correct themselves. John Maynard Keynes uses fiscal policy to prevent inflation and economic recession. Fiscal policy uses government expenditure and taxes to regulate consumption and expenditure. If there is a risk of inflation, the government raises taxes and limits the amount consumable by consumers. This will reduce demand and lower prices. During the economic downturn, the government reduces fiscal burden and reduces taxes to help spending