Keynes believed that Boole had made a fundamental error which vitiated much of his analysis.

Though Taylor argued that the Second World War was not inevitable and that the Versailles treaty was nowhere near as harsh as contemporaries like John Maynard Keynes believed, what he regarded as a flawed peace settlement made the war more likely than not.

Economists Matthew Bishop and Michael Green claim that full acceptance of the hypothesis goes against the thinking of Adam Smith and John Maynard Keynes, who both believed irrational behavior had a real impact on the markets.

Many lawyers and economists influenced by Keynes worked under the New Deal, and believed that free markets, without proper regulation, would lead to disaster.

John Maynard Keynes, both of whom believed that capitalism is vital for freedom

Lodge, the Republican Senate Leader, shared Keynes ' concerns about the severity of the Treaty on Germany and believed that it would have to be renegotiated in the future.

In Germany, Keynes ' work confirmed what the overwhelming majority of the people already believed: that is, that the Versailles Treaty was unfair.

For example, Keynes believed European output in iron would decrease, but by 1929 iron output in Europe was up 10 % from the 1913 figure.

Keynes also believed that Germany would be unable to pay the 2 billion marks-plus in reparations for the next 30 years, but Mantoux contends that German rearmament spending was seven times as much as that figure in each year between 1933 and 1939.

Keynes believed that the economy was subject to Sticky Prices and thus the economy was not in a state of perpetual equilibrium and also operated at an under-employment equilibrium.

Keynesian aggregate expenditure Keynesian economics calls for a government intervention and is called demand side economics as it believes that aggregate demand and not the aggregate supply determines the GDP because of the difference between the Aggregate Supply and Planned expenditure in an economy. Hence Keynes believed that the government played an important role in the determination on the Aggregate Expenditure in an economy and was thus included Government Expenditure in the Aggregate Expenditure Function.

As with Bletchley in the 1970s, City's directors believed that they could build their club up to be accepted as representing Milton Keynes as a whole, but they never achieved this.

Keynes believed that similar behavior was at work within the stock market.

In 1932, Hayek suggested that private investment in the public markets was a better road to wealth and economic coordination in Britain than government spending programs, as argued in a letter he co-signed with Lionel Robbins and others in an exchange of letters with John Maynard Keynes in The Times.

Business cycle theory is used by Keynes to explain ' liquidity traps ' by which underconsumption occurs, to argue for government intervention with central banking.

Aggregate expenditure ( AE ) can be increased, according to Keynes, by increasing consumption spending ( C ), increasing investment spending ( I ), increasing government spending ( G ), or increasing the net of exports minus imports ( X − M ).

Keynes also supported government intervention in the economy as necessity, as did mercantilism.

During the War as a member of CEMA ( Council for the Encouragement of Music and the Arts ) Keynes helped secure government funds to maintain both companies while their venues were shut.

Keynes was a lifelong member of the Liberal party, which until the 1920s had been one of the two main political parties in the United Kingdom, and as late as 1916 had often been the dominant power in government.

* Keynes, Simon, ' Royal government and the written word in late Anglo-Saxon England ' in The Uses of Literacy in Early Medieval Europe.

* In its planning, the government of the day intended Milton Keynes, Buckinghamshire, to be a " new city " in scale, and it was referred to as such in contemporary supporting papers, but was gazetted in 1967 as a New Town.

The idea was revived in 1994, by the Bedford and Milton Keynes Waterway Trust, who have formed a partnership with 25 bodies, including local councils, British Waterways and various government agencies.

In February 2009, Summers quoted John Maynard Keynes, saying " When circumstances change, I change my opinion ", reflecting both on the failures of Wall Street deregulation and his new leadership role in the government bailout.

The town is predicted to grow by around 30 percent under the Milton Keynes South Midlands ( MKSM ) study, as the UK government has identified Wellingborough as one of several towns in Northamptonshire where growth will be directed over the next 30 years.

As part of its Milton Keynes South Midlands ( MKSM ) study, the government has identified Wellingborough as one of several towns in Northamptonshire into which growth will be directed over the next thirty years.

For Keynes, the government had to be prepared to act as the spender of last resort, just as the central bank acted as the lender of last resort.

Schumacher helped the British government mobilise economically and financially during World War II, and Keynes found a position for him at Oxford University.

According to Leopold Kohr's obituary for Schumacher, when his paper " was published in the spring of 1943 in Economica, it caused some embarrassment to Keynes who, instead of arranging for its separate publication, had incorporated the text almost verbatim in his famous " Plan for an International Clearing Union ," which the British government issued as a White Paper a few weeks later.

Walton Community Council is the first tier of local government serving those living, attending and working in this area of Milton Keynes.

While he agreed with the policies of government spending that Keynes pushed for, Viner argued that Keynes's analysis was flawed and would not stand in the long run.

Keynes used his political influence to ensure that the Arts Council reported directly to the Treasury rather than an Arts Minister or the Education Department as had been the case with CEMA, establishing the principle of an ' arms length ' relationship between UK Arts policy and the government of the day.

British ideas, classical and modern, have also exerted a profound influence on US economic policy, most notably the historian Adam Smith on free trade and the economist John Maynard Keynes on counter-cyclical spending, while the British government has adopted workfare reforms from the United States.

When Winston Churchill became Prime Minister in 1940, Wood was made Chancellor of the Exchequer, in which post he adopted policies propounded by John Maynard Keynes, changing the role of HM Treasury from custodian of government income and expenditure to steering the entire British economy.

Rostow ’ s model does not disagree with John Maynard Keynes regarding the importance of government control over domestic development which is not generally accepted by some ardent free trade advocates.

John Maynard Keynes formulated a theory of overproduction, which led him to propose government intervention to ensure effective demand.

Military Keynesianism is the accusation that John Maynard Keynes advocated government economic policy in which the government devotes large amounts of spending to the military in an effort to increase economic growth.

In the 1929 general election he made a final bid to return the Liberals to the political mainstream, with an ambitious programme of state stimulation of the economy called We Can Conquer Unemployment !, largely written for him by the Liberal economist John Maynard Keynes.

Keynes asked his friend Piero Sraffa to respond publicly to Hayek's challenge ; instead of formulating an alternative theory, Sraffa elaborated on the logical inconsistencies of Hayek's argument, especially concerning the effect of inflation-induced " forced savings " on the capital sector and about the definition of a " natural " interest rate in a growing economy.

Prior to the publication of Keynes ' General Theory, mainstream economic thought was that the economy existed in a state of general equilibrium, meaning that the economy naturally consumes whatever it produces because the needs of consumers are always greater than the capacity of the economy to satisfy those needs.

Keynes argued that the solution to the Great Depression was to stimulate the economy (" inducement to invest ") through some combination of two approaches:

In The General Theory, Keynes argued that neo-classical economic theory did not apply during recessions because of excessive savings and weak private investment in an economy.

Throughout his life Keynes worked energetically for the benefit both of the public and his friends – even when his health was poor he laboured to sort out the finances of his old college, and at Bretton Woods, he worked to institute an international monetary system that would be beneficial for the world economy.

Robinson, Paul Davidson and Hyman Minsky were notable for emphasising the effects on the economy of the practical differences between different types of investments in contrast to Keynes more abstract treatment.

Paul Davidson follows Keynes closely in placing time and uncertainty at the centre of theory, from which flow the nature of money and of a monetary economy.

Gunnar Myrdal was early in supporting the theses of John Maynard Keynes, maintaining that the basic idea of adjusting national budgets to slow or speed an economy was first developed in Sweden by him and the Stockholm school.

In the early 20th century, many governments were taking a more interventionist role in the economy, foreshadowing the influence of economists like John Maynard Keynes.

Keynes argued that changes in investor ’ s expectations about respect to the state of the economy.

Friedrich Hayek, another Austrian theorist, argued that Keynes ' study of the aggregate relations in an economy is fallacious, as recessions are caused by micro-economic factors.

According to Keynes, the implication of Say's " law " is that a free-market economy is always at what the Keynesian economists call full employment ; see also Walras ' law.

John Maynard Keynes claimed that overall influence on the world economy of exacting reparations from Germany would have been disastrous.

He wrote on economics and his Principles of political economy ( 1885 ) was described by John Maynard Keynes as " one of those original works which a fresh scientific mind, not perverted by having read too much of the orthodox stuff, is able to produce from time to time in a half-formed subject like economics.

The total consumer spending in an economy is generally calculated using the consumption function, a metric devised by John Maynard Keynes, which simply expresses consumption as a function of the aggregate disposable income.

Keynes convinced Wood that he should abandon the orthodox Treasury doctrine that Chancellors ' budgets were purely to regulate governmental revenue and expenditure ; Wood, despite some misgivings on Churchill's part, adopted Keynes's conception of using national income accounting to control the economy.

While this later conception differed from that asserted by Keynes, both views have in common first the assertion that monetary policy affects the economy only via interest rates, and second the conclusion that monetary policy cannot stimulate an economy in a liquidity trap.

" Professor Myrdal was an early supporter of the theses of John Maynard Keynes, although he maintained that the basic idea of adjusting national budgets to slow or speed an economy was first developed by him and articulated in his book Monetary Economics, published in 1932, four years prior to Keynes ' General Theory of Employment, Interest and Money.