Keynesian Theory of Employment

Introduction to Keynesian Theory of Employment

Keynesian Theory of Employment

John Maynard Keynes

Keynesian Theory was given by Keynes when in his volume “General Theory of Employment, Interest and Money” had not only criticized the Classical Theory of Employment, but had also analyzed those factors that affect the employment and production level of an economy. Most of the modern economists agree with the concept of Keynes. The Keynesian Theory of Employment is a produce of the world-wide depression of 1931-36. Due to this depression, unemployment spread in all independent capitalist economies. Keynes analyzed that situation of unemployment and tried to find the reason and solution to that problem. Continue reading