ABSTRACT
Keynesian theory, with discussion of financial instability and other additions to basic Keynesian theory made over the years. Keynesians emphasize the role of aggregate demand and its components as the source of fluctuations in the economy. The Keynesians and Modern Monetary Theory (MMT) people are the “liberals,” in the sense they think that the government is capable of carrying out economic policy that is of benefit to the nation. John Maynard Keynes (1883–1946) is generally regarded as the most important economist of the 20th century. Keynes was the son of the English economist John Neville Keynes and a brilliant student of philosophy, mathematics, and economics at Cambridge University. He pursued an academic career at Cambridge and achieved international fame with the publication in 1919 ofThe Economic Consequences of Peace , a strong critique of the Versailles Treaty at the end of World War I that imposed harsh conditions on Germany that would inhibit the recovery of the entire European economy.
