The General Theory of Employment

This article is a response to several criticisms on general theory and remarks on Keynes' opinion on his differences with classical theory. He explained how uncertainty leads to the difference between interest and money operation methods, which leads to very different conclusions about effective demand, total production, and employment. In his criticism of general theory, Keynes thinks Wiener's criticism about his definition and treatment of unwilling unemployment is most appropriate for detailed correspondence.

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.

In 1936, John Maynard Keynes published a book entitled "General Theory of Employment, Interest, and Money," which laid the foundation for his Keynesian economic theory. Given the huge negative impact of the Great Depression, this is a time of interesting economic speculation. Keynes' concept played a role in Roosevelt's public economic policy during the Second World War and became a major view of the postwar Europe. At that time, the elementary school of economics was a classical economist (still popular school still). The central principle of classical discussion is that supply always produces demand and the surplus is to lower the price to the point of consumption. In a nutshell, people have infinite needs and the market will fix themselves based on aggregate demand and available resources. This means that the market can take on its own public policy

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. "