1. John Maynard Keynes <br />Education – <br />-won scholarship to Eton College <br />-won scholarship to King’s College, Cambridge<br />Philosophies – <br />-concerned with the economic recession and the phases of increase and decrease of the economy as they correlate with unemployment.<br />-for an economy to recover from a recession, governmental intervention is required in the sectors of tax imposition, investments and social policy in order to control unemployment rate<br />-1. Contrary to the classic economists that associate the consumption mainly to the interest-rate, Keynes asserts that the fundamental defining factor of consumption is primarily the available income and circumstantially the interest-rate.2. The marginal propensity to consumption, (which the sum that is consumed as the income increases by one unit), is between zero and one. In addition, there is a relation of feedback between income and consumption, which influences the effectiveness of budgetary policy.3. The average propensity to consumption (the percentage of income that is consumed), is decreased, as the income increases, while opposite happens for the saving.<br />-wrote “The Economic Consequences of the Peacequot;
<br />-The ideas of Keynes influenced the economic policies of many governments after World War II and they were called after his name quot;
Keynesianismquot;
. This economic policy was adopted during the post-war decades from the trade-union associations of Europe and the United States<br />-invented the interventionist application of government policy revisions of capitalist theory to national economy<br />-wrote The General Theory of Employment, Interest and Money<br />http://encarta.msn.com/encyclopedia_761569910_2/John_Maynard_Keynes.html<br />http://www.helium.com/knowledge/183174-the-theories-of-john-maynard-keynes<br />
