Summary Of "Brief Introduction To The Thought Of Keynes" By Dudley Dillard: UNIVERSITY SUMMARIES

By MAURICIO ENRIQUE FAU

According to Dillard, Keynes bases his theory on the following axes: it deals with all levels of employment, and it opposes the Classical Theory that only talks about full employment. In capitalism employment is fluctuating. Another general point is that inflation depends on the volume of effective demand; when demand is deficient, unemployment occurs and when demand is excessive, inflation occurs. His theory refers to the volume changes of employment and production in the economic system as a whole, opposing the classics that speak of the singular company. We have summarized the essentials of Dudley Dillard's "The Economic Theory of Keynes."

• Language: English
• Publisher: BOOKS AND SUMMARIES BY MAURICIO FAU
• Release date: Oct 22, 2021
• ISBN: 9798201219529

MAURICIO ENRIQUE FAU

Mauricio Enrique Fau nació en Buenos Aires en 1965. Se recibió de Licenciado en Ciencia Política en la Universidad de Buenos Aires. Cursó también Derecho en la UBA y Periodismo en la Universidad de Morón. Realizó estudios en FLACSO Argentina. Docente de la UBA y AUTOR DE MÁS DE 3.000 RESÚMENES de Psicología, Sociología, Ciencia Política, Antropología, Derecho, Historia, Epistemología, Lógica, Filosofía, Economía, Semiología, Educación y demás disciplinas de las Ciencias Sociales. Desde 2005 dirige La Bisagra Editorial, especializada en técnicas de estudio y materiales que facilitan la transición desde la escuela secundaria a la universidad. Por intermedio de La Bisagra publicó 38 libros. Participa en diversas ferias del libro, entre ellas la Feria Internacional del Libro de Buenos Aires y la FIL Guadalajara.

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Summary Of Brief Introduction To The Thought Of Keynes By Dudley Dillard

UNIVERSITY SUMMARIES

MAURICIO ENRIQUE FAU

Published by BOOKS AND SUMMARIES BY MAURICIO FAU, 2021.

While every precaution has been taken in the preparation of this book, the publisher assumes no responsibility for errors or omissions, or for damages resulting from the use of the information contained herein.

SUMMARY OF BRIEF INTRODUCTION TO THE THOUGHT OF KEYNES BY DUDLEY DILLARD

First edition. October 22, 2021.

Copyright © 2021 MAURICIO ENRIQUE FAU.

ISBN: 979-8201219529

Written by MAURICIO ENRIQUE FAU.

Table of Contents

Title Page

Copyright Page

Dillard, Dudley | KEYNES’ ECONOMIC THEORY

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Further Reading: Summary Of Political Writings By Max Weber

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Dillard, Dudley

KEYNES’ ECONOMIC THEORY

1. GENERAL CHARACTER of his theory.

It deals with all levels of employment. He opposes the Classical Theory that only talks about full employment. In capitalism employment is fluctuating. Another general point is that inflation depends on the volume of effective demand; when demand is deficient, unemployment occurs and when demand is excessive, inflation occurs. His theory refers to the volume changes of employment and production in the economic system as a whole, opposing the classics that speak of the singular company.

2. The role of money. Three functions:

It is a medium of exchange, unit of account and accumulator of value (the most important). Hoarding money is safer than lending or investing it because there is no uncertainty.

3. Relationship between interest and money:

Interest is the reward for lending liquid wealth. The more liquidity preference, the more interest you have to pay.

4. The investment:

It is a production that exceeds what is usually consumed. Employment depends on the amount of investment (Unemployment is caused by insufficient investment).

5. The uncertainty of the future:

Investment fluctuates because present knowledge of the future rests on a precarious basis (we know very little about it). Investors use conventional (middle ground) judgments as the basis for their conduct in the market. Unlike classical ultra-rationalism, Keynes believes that you can have a rational thought and arrive at an irrational result. In a world in which the economic world is uncertain, and in which money is an important way of accumulating wealth, the general level of employment depends on the relationship between a) the expected returns from investment in capital goods; and b) the premium of i = interest rate for lending the money. If there is confidence in the future, investment and employment increase; but if there is not, i = interest rate increases and investment and employment fall. Depression: Period in which i = interest rate is higher than the expected return on investment, Capital Accumulation and employment fall.

Classical Economic Theory

It assumes the total employment of labor (L) and other sources of production. If there is no total employment in a period, this is abnormal (government disturbance or monopolies in the free equilibrium of the market). The main thing is laissez faire, the non-intervention of the State in private enterprise. For Keynes, what is normal for laissez faire capitalism is a fluctuating level of employment, what matters most to him is to explain what determines the volume of employment at any given moment. The relationships between supply and demand determine the prices of the elements of production and goods through the market. for classical theory, the alternative is between employment here (in one company) or employment there (in another), and not between employment and unemployment.

Supply