ABSTRACT
John Maynard Keynes's model of aggregate demand management changed the dismal science to the optimists' club: man could be the master of his economic destiny after all. In his revolutionary 1936 book, The General Theory of Employment, Interest and Money, Keynes preached that capitalism is inherently unstable and has no natural tendency toward full employment. On the micro level, several economists simultaneously wrote books that independently challenged the classical model of competition. The Keynesian model of aggregate demand management swept the profession even faster than the marginalist revolution, especially after Second World War seemed to vindicate the benefits of deficit spending and massive government spending. Historians Elizabeth Jorgensen and Harry Johnson even went so far as to suggest that Keynes's misogynistic attitude extended to his theories about saving and investing. In his Treatise on Money, published in 1930–1931, he admitted that he had been misled by stable price indices in the 1920s, and that a "profit inflation" had developed.
