Economics Dictionary of ArgumentsHome
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| Demand: In economics, demand refers to the quantity of a good or service that consumers are willing and able to purchase at various prices. It is represented by a demand curve, which shows the inverse relationship between price and quantity demanded. See also Price, Markets._____________Annotation: The above characterizations of concepts are neither definitions nor exhausting presentations of problems related to them. Instead, they are intended to give a short introduction to the contributions below. – Lexicon of Arguments. | |||
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John Maynard Keynes on Demand - Dictionary of Arguments
Boudreaux II 60 Demand/Keynes/Boudreaux: The Single most influential economics book written in the twentieth century is The General Theory of Employment, Interest, and Money(1), by the British economist John Maynard Keynes (1883—1946). Keynes reasoned that, just as high demand is key to the success of an individual firm, high aggregate demand is key to the success of a whole economy. Recession/Keynes: In Keynes's view, economic recessions are caused by too little aggregate demand. Solution: The cure for recessions, therefore, is higher aggregate demand. And the best way to increase aggregate demand is for government to ramp up its spending until economic health is restored - that is, until full employment is reached. Boudreaux II 61 This Keynesian View is widespread. It seems to make so much sense. Problems/VsKeynes: But it suffers serious flaws. And perhaps its biggest flaw is its focus on aggregate demand. By focusing on aggregate demand, Keynesian economics ignores the all-important ("microeconomic") details of an economy. Microeconomics: These vital details are how well or poorly each of the economy's many individual parts "fit" together and work together to generate goods and services for consumers, and to create job opportunities for workers. >Microeconomics. 1. John Maynard Keynes, The General Theory of Employment, Interest, and Money (New York: Harcourt, Brace, 1936)._____________Explanation of symbols: Roman numerals indicate the source, arabic numerals indicate the page number. The corresponding books are indicated on the right hand side. ((s)…): Comment by the sender of the contribution. Translations: Dictionary of Arguments The note [Concept/Author], [Author1]Vs[Author2] or [Author]Vs[term] resp. "problem:"/"solution:", "old:"/"new:" and "thesis:" is an addition from the Dictionary of Arguments. If a German edition is specified, the page numbers refer to this edition. |
EconKeyn I John Maynard Keynes The Economic Consequences of the Peace New York 1920 Boudreaux I Donald J. Boudreaux Randall G. Holcombe The Essential James Buchanan Vancouver: The Fraser Institute 2021 Boudreaux II Donald J. Boudreaux The Essential Hayek Vancouver: Fraser Institute 2014 |
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