Your assignment is to prepare and submit a paper on john maynard keynes contribution to macro economics.

Your assignment is to prepare and submit a paper on john maynard keynes contribution to macro economics. All these above theories he made when launching his book in 1936 “the general theory of employment, money and interest.” Keynes believed that the classical approach to macroeconomics was erroneous and had been interfered with by the outbreak of world war one. He also believed that the classical approach’s belief that the balance between supply and demand would ensure employment for everyone was false. This was caused by inadequate investment and the psychology held by many people about saving. People had fear of investments due to the looming uncertainties caused especially by the war. The classical approach had thus grown absurd and this is why John Keynes embarked on the project to come up with new economic theories to save the situation. The solution that Keynes brought to the above problem of the private fear of investment was to bring in public investment from the government albeit on deficit spending. This would in turn create jobs and soon the government would pay off their debts. This therefore laid a foundation for macro- economics as it viewed the entire economy as one focusing on the government’s role in the economy as a whole. His research helped come up with ways that were used to measure an economy’s productivity.