A Brief History of Economics
Subject:
John Maynard Keynes was a British economist whose ideas have greatly shaped modern macroeconomics, and indeed is credited as the father of all modern macroeconomics. His ideas are the basis for the school of thought known as Keynesian economics.
Keynesian Economics states that some microeconomic decisions may lead to macroeconomic inefficiencies. In other words, if a small economy such as Arizona’s real estate market slips, it could cause the large economy it is a part of, the economy of the United States, to wane. Several branches of Keynesian Economics are used today.
Adam Smith’s economic theory basically states that as long as people act in their own self interest, the economy will remain stable to its highest efficiency.
