why did keynes rush?hink the reason was the sense of urgency communicated to him by developments within britain and europe-- in germany where hitler had come to power, in the united states where revolution was in the air, and in other parts of europe and in britain, too, where the intellectual class was rapidly moving to the left. he felt he had an answer that was superior to marx as to analyzing capitalism's discomforts, an answer that was not only superior, but much more congenial to him for handling it. john maynard keynes is a truly memorable figure of the 20th century. he married a ballerina, ran an insurance business, and wrote a treatise on mathematical probability. but first and foremost, he was a teacher. the imagination he showed made... his ability to associate something he found interesting with something that had been said that by itself was uninteresting... it just stood out. you were in semishock listening to him. i was also impressed by the support and warmth he gave students. for all his

what was so different about keynes' view of the economy?o realize what a revolutionary idea keynes had, we have to recall again the classical view which said supply creates its own demand. if consumers don't want to consume all their incomes they can lend their savings to businesses who will invest it. the idea is that if consumption goes down, investment demand will go up. if investment demand goes down, consumption demand will go up. in either case total demand remains high. keynes said if you had a fall in investment spending, this might lead to a fall in consumption spending. total demand-- consumption demand plus investment demand-- might fall. it might be a multiplied fall once the process got started. let me stress this was a shocking idea. when demand falls, it may not repair itself a la says law. it may fall further. there may not be enough total demand to provide markets for the goods or the labor that produces them. the economics profession was coming to grips with the possibility of a serious depression. it was on the verge of a

much of the theory came from john maynard keynes.nes argued that an industrial economy could get stuck at high levels of unemployment. the depression proved this. he predicted strong government intervention such as tax cuts and spending programs would restore prosperity. this seemed to be happening during world war ii. by 1945, many people accepted keynesian theories but were reluctant to see them legislated. to bridge this gap between economics and politics a council of economic advisers was suggested. the question remained where to put this new body. we put it in the executive office of the president which tied it up to presidential power and fit it into the basic idea that the president is the manager of economic affairs. while conservatives and liberals debated in congress, a weary president died. the nation mourned franklin roosevelt and wondered about its new leader the unknown, uncharismatic harry truman. for all his supposed shortcomings, the new president had common-sense ideas on unemployment. leon keyserling, original memb

often soren to be jobs so the modern phenomenon of nonsense jobs in one thousand thirty john maynard keynes predicted that by centuries and technology would have advanced sufficiently that countries like britain or the united states would have achieved a fifteen hour working week and you notice that in fact we have essentially achieved that but we keep on filling it up with nonsense jobs so people are still working fifty sixty seventy hours a week in nonsense jobs whether it's dog walking or serving hamburgers or things that look like hamburgers at various fast food outlets around the u.s. so we keep on having these nonces jobs what is that about so he reckons it's partly like the soviet union where everybody was guaranteed a job in order to prevent any revolution or uprising and the same thing here is that they keep people in these nonsense jobs just to keep them occupied and feel like they're doing something otherwise you might have revolution but just like the soviet union you would find three four five six people serving you a hamburger and because they all needed a job we have the same

jobs so the modern phenomenon of nonsense jobs in one thousand thirty john maynard keynes predicted that by centuries and technology would have advanced sufficiently that countries like britain or the united states would have achieved a fifteen hour working week and you notice that in fact we have essentially achieved that but we keep on filling it up with nonsense jobs so people are still working fifty sixty seventy hours a week in nonsense jobs whether it's dog walking or serving hamburgers or things that look like hamburgers at various fast food outlets around the u.s. so we keep on having these nonces jobs what is that about so he reckons it's partly like the soviet union where everybody was guaranteed a job in order to prevent any revolution or uprising and the same thing here is that they keep people in these nonsense jobs just to keep them occupied and feel like they're doing something otherwise you might have revolutions but just like the soviet union you would find three four five six people serving you a hamburger and because they all needed a job we have the same thing here yo

professional economists, neo-keynes minneapoliss and monitorrists alike gladly dismissed bretton woods exchange regimes not because like the interwar monetary regime it was a flawed, profoundly flawed currency reserve system as it surely was, but because it was the last vestige of monetary restraint still remaining from the pre-world war i classical gold standard. the academic economists now proclaimed the coming of a new era of central bank-managed money and, of course, floating exchange rates. to be managed just as well by economists at the fed and other central banks, and the economists at international monetary institutions. so it was that from 1945 to 1965 the neo-keynesians had ruled economic policy making many washington and in other developed countries and in other imabove impoverished, underdeveloped countries like india. then came the counterrevolution of the monetarists who captured much of the field of technology in the late 1960s and 1970s. from them one learned that money matters as much or more than fiscal policy, and in particular one learned from the monetarists that g

out of the crash, john maynard keynes provides a new theory of the business cycle.was his revolutionary idea? boom and bust: who can explain the business cycle?

pan out court of human rights the move is being praised by the ruling monarch air spied by quote keynes believe in basic human liberties the mood is quite different among the opposition ranks activists claim mob help improve the rights of those in bahrain secretary-general assistant of the country's largest opposition party music as it's nothing more than a p.r. stunt for the government. this is just part of the big girl. or through tears were doing so for team for glory when the uprising came the authority as their. own justice and if they believe in justice they should have provided to their citizens rather than going out there and trying to convince the people as the court of justice for the lead this is just to cover up what's happening in. the years condemning the judicial oath that the. and that just after the break we'll meet the russian man who gave the home to thirty friends to stay with us you know. many gay bars are starting to refuse to sell russian vodka as a means of protesting the homosexual propaganda laws in russia as i've said before boycotts are a great way to put pre

no amount of losing our jobs on the nest eggs and the library for a copy of john maynard keynes the general theory of employment interest and money. this very pervasiveness of economics keeps us from getting distance on the subject. we can view death from as far from an average of 72.7 years if we are a male american and 79.5 years if we are female. and it is maturing as for funneling the brain. the work in the short term unless you are the president i guess. but there's no such thing as a dollar of gas. the money is always with us. [laughter] what am i going to do to take off shopping? drinking and drugs, i suppose i can play with the kids. they need new shoes. constant money has a bad effect on the human psychology. i would argue there is more unbalanced thinking of finance and about anything else. that may be the mainstay of the psychoanalysis, but knows how to string shrinks asked to be paid. people will do some odd things for publishers political or religious. if you consider how people spend their dough it hard the covers it. the reactions to cash even when it is half a world away and

decisions, and that plus then bernanke, the only common sense in the world to think that john maynard keynes was right and that the europeans were wrong, but those are the two things that saved our economy. there is no economic dogma in washington controls everything. every50 million people day making aggregate decisions, and people making aggregate decisions often end up right, especially when making business decisions. bads easier to make decisions when you get really mad about something. it does happen in business, but it does not happen so often. bigger supply and less all at one end of manhattan, and they do stupid things. theyconvinced each other are right. they all talk to each other and forget about everybody else, but notusiness, they do necessarily talk to each other. they are making rational decisions every single day. that is what is going to happen in the health insurance market. you are going to make rational decisions every day. this does require good regulations. we will get to that in a second. but rational decisions are going to be made. if you have 50 million people every

john maynard keynes. .arry dexter white they both had a plan and shared a vision. the other parties in britain would could argue that they participated. but you will see the those to -- two lee these exercise to the formation of the exercise to the formation of the imf. like a credit union for the world -- it was right after the second world war, and there was massive reconstruction needed on the ground. the imf member countries pool resources that can provide a lifeline to member countries in need. the first country that use the resources provided by the credit union was my own country, france. it moved around the world. for those who believe the imf is ,nly for low income countries not at all. , ases around the globe economic crises go around the globe as well. it helped enormously the newly independent countries after decolonization. , thethe berlin wall fell funds supported efforts to transform from the centrally economicsonomy -- into market economics. in between, the imf has helped its members to overcome economic crisis in latin america in the 1980's, in asi

john maynard canse is usually voke -- keynes is often envoked. he never favored consumption, he favored investment. investment spending. his idea of stimsluss the kennedy-johnson permanent tax cuts or reagan tax cuts. le to the favor spending help, he didn't believe in deficit spending. there's no sound basis in economics for the policies we have followed. they have not ended the recession in almost five years, not surprisingly, and most forecasts i have seen call for subpar growth in the next five years. we can do better, should do better and if we're going to achee the america we want, we should do better. in searching through past recessions, there's only one recession similar to this one, 1938 to 1940, you can see table six and the paper in my testimony. what president roosevelt did is similar to what president obama has done he calls the businessmen economic royalists, tried to pack the supreme court, passed an exezz profits tax, ginned up the antitrust division to go after businessmen, got congress to acomponent the temp rare commission tha

keynes talked about animal spirits announces people. but president bush really came out with the great economic insight of all times. he did it in 10 words in september 2008. he went to the white house and said if money doesn't lose enough this will go down. that goes right up to him to tear down those facts. he backed up those fellas. so we've come back from it. but businesses come back. a lot of companies are having record profit, including many umpires. there have been populaces as a whole that is not coming back. a quality is getting wider. the "forbes" 400, which just came out shot aggregate wealth of $2 trillion. you go back 20 years and that was 300 billion. if different people to some extent, that this is the top. 300 billion to 2 trillion. they are saying the medium and come is the same place it was in terms of purchasing power. in 1989 it hasn't changed. so the inequality is getting wider. the rich are doing extremely well, extraordinarily well and businesses doing well. this is profit margins are terrific compared to the reco

keynes. what i try to describe today is a bit of a journey that the imf has taken hand in hand together. the united states is a leading shareholder a steadfast partner played a key role enmity terms of the institution and we work together for a mutual goal and shared prosperity. a complete a vital role in history and a very much welcome this deep relationship we have had that we both want to deepen to be of health in service the imf membership we share the same purpose. think you very much. [applause] >> you'll have to speak on your feet but i have collected a few questions from the audience i would try to aggregate first of all, five years after the crisis exposed to the global markets but with fighting and saying. >> five years down the road it is certainly less exposed with the improvement particularly in the financial sector. get we are not out of the woods that is clearly demonstrated over the last two weeks there are a lot of hard reforms that need to be completed i have mentioned a few