Interpretations of Keynes and the development of postwar macroeconomics

The General Theory exerted a profound influence on both theoretical economics and economic policy-making in the postwar world. But its influence also extended well beyond these spheres to the vaster world of social philosophy with the Beveridge Report – the ‘Keynes-Beveridge System or the Post-war Consensus’ to the effect that the government should be responsible for attaining full employment through economic policy, and establishing a social security system through its partial contribution so that the people could make a stable living.