“GENERAL THEORY” OF J.M. KEYNES: 80 YEARS AFTER

The Keynes' "General Theory", published 80 years ago, overthrew the neoclassical orthodoxy and created a new understanding of how market economy works. The main idea of the "General Theory" is that the amount of employment depends on the level of effective demand. Keynes believed that much economic activity is governed by "animal spirits" because of the existence of inescapable uncertainty about the future. In Keynes' view these "animal spirits" are the main cause for economic fluctuations. The uncertainty and "animalspirits"make investments unstable. He made distinction between risk (which is measurable) and uncertainty (which is not). This is the reason why Keynes opposed the excessive mathematicization of economics. His another important impact on economics was to switch the focus of economic analysis from the long run to the short term. The message of "General Theory" was that government should manage demand to limit economic fluctuations. The role Keynes gave the state was essentially to reduce uncertainty and to make economy more predictable.

Keynesian economics, Keynesian revolution, macroeconomics, macroeconomic policy, uncertainty, animal spirits, effective demand, savings, investments, multiplier, short run analysis

1. Seligman B. Main Currents in Modern Economics. The Free Press of Glencoe, 1963. (Russ. ed.: Seligman B. Osnovnye techeniya sovremennoy economicheskoy mysli. – М.: Progress, 1968. – 600 с.)

2. Heilbroner R. The Worldly Philosophers. Touchstone, 1999. (Russ. ed.: Heilbroner R. Filosofy ot mira sego. – М.: CоLibri, 2008. – 432 c.)

3. Skidelski R. Keynes: The Return of the Master. N.Y., PublicAffairs, 2009. (Russ. ed.: Skidelsky R. Keynes. Vozvraschenie mastera. - М.: ООО «United Press», 2011. – 253 с.)

4. Blaug M. Economic Theory in Retrospect. Cambridge University Press, 1985. (Russ. ed.: Blaug М. Economicheskaya mysl v retrospektive. – М.: Delo Ltd., 1994. – 687 с.)

5. Schumpeter J. Ten Great Economists from Marx to Keynes. Oxford University Press, 1951. (Russ. ed.: Schumpeter J. Desyat velikikh ekonomistov ot Marksa do Keynsa. – Izd. Instituta Gaidara, 2011. – 416 с.)

6. Keynes J.M. The General Theory of Employment, Interest and Money. Palgrave Macmillan, 1936. (Russ. ed.: Keynes J. М. Obschaya teoriya zanyatosti, protsenta I deneg / Keynes J. М. Obschaya teoriya zanyatosti, protsenta i deneg. Izbrannoe. – М.: Eksmo, 2007. С.37–340)

7. Jevons W.S. Notice of a General Mathematical Theory of Political Economy. L.J. Murray, 1862. (Russ. ed.: Jevons W. S. Kratkoe soobschenie ob obschey matematicheskoy teorii politicheskoy economii. Teoriya potrebitelskogo povedeniya i sprosa. SPb.: 1993. p. 70–77

8. Akerlof G., Shiller R. Animal Spirits. How Human Psychology Drives the Economy, and Why It Matters for Global Capitalism. Princeton University Press, 2009. (Russ. ed.: Akerlof G., Shiller R. Spiritus Animalis, ili kak chelovecheskaya psikhologiya upravlyaet ekonomikoy I pochemu eto vajno dlya mirovogo kapitalizma. М.: ООО «United Press», 2010. – 273 p.

9. Keynes J. М. The General Theory of Employment. Quarterly Journal of Economics. Vol. 51, No. 2 (Feb., 1937), pp. 209–223 (Russ. ed.: Keynes J. М. Obschaya teoriya zanyatosti. / Keynes J. М. Obschaya teoriya zanyatosti, protsenta i deneg. Izbrannoe. – М.: Eksmo, 2007. – С. 356–367)

10. Keynes J. M. Comment // The Economic Journal. 1940, Vol. 50, № 197. P. 154-156. (Russ. ed.: Keynes J. M. Kommentariy. / Keynes J. М. Obschaya teoriya zanyatosti, protsenta i deneg. Izbrannoe. – М.: Eksmo, 2007. – 459–460)

11. Keynes J. M. Professor Tinbergen’s Method. The Economic Journal. 1939, Vol. 49, № 195. P. 558-570 (Russ. ed.: Keynes J. M. Metod professora Tinbergena М. Keynes J. М. Obschaya teoriya zanyatosti, protsenta i deneg. Izbrannoe. Мoscow: Eksmo, 2007. P. 433– 443)

12. Keynes J.M. A Tract on Monetary Reform. New York, Prometheus Books, 2000. 220 p.

13. Schumpeter J. History of Economic Analysis. Routledge, 1994. (Russ. ed.: Schumpeter J. Istoriya ekonomicheskogo analiza: v 3 t. SPb.: Ekonomicheskaya Shkola, 2001. V. 3. 1664 p.)