《经济思想史英文课件教学版-Chapter 16 John Maynard Keynes》由会员分享，可在线阅读，更多相关《经济思想史英文课件教学版-Chapter 16 John Maynard Keynes（28页珍藏版）》请在金锄头文库上搜索。
1、Chapter 16Chapter 16 The Keynesian School John The Keynesian School John Maynard KeynesMaynard Keynes 1 OVERVIEW OF THE KEYNESIAN SCHOOL 2 JOHN MAYNARD KEYNES The Historical Background of the Keynesian School Major Tenets of the Keynesian School Whom Did the Keynesian School Benefit or Seek to Benef
2、it How Was the Keynesian School Valid Useful or Correct in Its Time Which Tenets of the Keynesian School Became Lasting Contributions 1 OVERVIEW OF THE KEYNESIAN SCHOOL The Historical Background of the Keynesian School Keynes s ideas were given added impetus by the Great Depression of the 1930s the
3、worst the Western world had ever known Yet the roots of his ideas can be traced back to before 1929 Keynesian thinking also had its roots in the spreading concern about secular stagnation or a declining rate of growth Major Tenets of the Keynesian School 1 Macroeconomic emphasis 5 Active fiscal and
4、monetary policies 3 Instability in the economy 2 Demand orientation 4 Wage and price rigidity The great success of Keynesian economics came partly because it addressed a pressing problem of its day depression and unemployment Also it offered something for almost everyone and rationalized what was al
5、ready being done out of necessity Society gains from full or fuller employment Whom Did the Keynesian School Benefit or Seek to Benefit How Was the Keynesian School Valid Useful or Correct in Its Time Keynes geared economic theory to policymaking And the Keynesian view that there are alternative mea
6、ns to reductions in nominal wages to achieve full employment was particularly timely Which Tenets of the Keynesian School Became Lasting Contributions Numerous ideas developed by Keynes and his followers have become orthodox elements of contemporary macroeconomics In fact contemporary economics coul
7、d be said to be a combination of neoclassical microeconomics and Keynesian inspired macroeconomics Keynesianism as an analytical method and as a system of ideas still dominates macroeconomics Biographical Details The Keynesian System Criticisms 2 JOHN MAYNARD KEYNES The Keynesian System Stated forma
8、lly 1 there is a positive functional relationship between consumption C and national income Y that is C f Y 16 1 Consumption function 2 the ratio of the change in consumption to the change in income the marginal propensity to consume MPC is positive and less than one MPC DC DY 16 2 This implies that
9、 saving S also rises with income it too is a positive function of income S f Y 16 3 Like the MPC the marginal propensity to save MPS is greater than zero and less than one MPS DS DY 16 4 Continue Figure 16 1 The Consumption Function Investment Keynes defined economic investment as the purchase of ca
10、pital goods Businesses undertake investment on the expectation that the new capital will add to profits A second consideration in the investment decision said Keynes is the supply price or the replacement cost of the asset Keynes defined the marginal efficiency of capital as equal to that rate of di
11、scount that makes the present value of the series of expected returns just equal to the supply price of the capital asset This is expressed mathematically as 16 5 aInvestments will continue to the point at which the marginal efficiency of capital is equal to the rate of interest the cost of borrowin
12、g the funds with which to invest Continue The marginal efficiency of capital is highly variable it fluctuates with every change in people s expectations of future profits from contemplated investment Increased investment in any given type of capital said Keynes reduces the marginal efficiency of tha
13、t capital There are two reasons First expected profits decline as increasing amounts of investment compete with one another Second pressures on the facilities for producing that type of capital will cause its supply price to increase Continue Figure 16 2 The Investment Demand Curve Liquidity prefere
14、nce Liquidity preference depends on three motives for holding money and the reluctance to part with it except insofar as the rate of interest acts as an effective inducement The first is the transaction motive The second is the precautionary motive Finally there is the speculative motive Figure 16 3
15、 Liquidity Preference Money Supply and the Interest Rate The quantity of money supplied depends on the policy of the central bank It can increase or decrease the money supply through changes in open market operations reserve requirements and the discount rate The quantity of money supplied is assume
16、d to be independent of the interest rate hence the money supply curve M in Figure 16 3 is vertical or perfectly inelastic Continue In summary the level of investment in the economy depends on the interaction of 1 the marginal efficiency of capital which defines the investment demand curve and 2 the market rate of interest The market rate of interest depends on the demand for money liquidity preference and the supply of money Continue Equilibrium income and employment If we ignore the government
