Topic 7: Classical Economics versus Keynesian Economics John Maynard Keynes is one of the most influential 20th century economists. Keynes’ view of economics differed dramatically from those of classical economists. One primary way in which Keynesian economics conflicted with pure classical economics was that classical economics views the free market as self-regulating and prioritizes the concept of supply and demand as the primary force in determining market prices with respect to natural prices (Himmelberg 82). In contrast, the Keynesian economic model is often referred to as the Keynesian cross and it was instituted prior to World War II in many developed economies. While Keynesian economics attempts to encourage economic stability...The end:
.....ies worked to ensure that another Great Depression rising out of a large economic shock such as a stock market crash would be highly unlikely. And yet, oddly enough, Keynes still receives credit for leading the US out of the Great Depression not so much because of his economic reforms associated with the New Deal, but because of his overall influence on the economic infrastructure of the US. Works Cited Cottrell, A. & Lawlor, M. eds. New Perspectives on Keynes. Durham, NC: Duke University Press; 1995. Himmelberg, R. F. The Great Depression and the New Deal. Westport, CT: Greenwood Press; 2001. Runde, J. & Mizuhara, S., eds. The Philosophy of Keynes' Economics: Probability, Uncertainty and Convention. New York: Routledge; 2003.