The General Theory of Employment, Interest and Money

The General Theory of Employment, Interest and Money was written by the English economist John Maynard Keynes. The book, generally considered to be his magnum opus, is largely credited with creating the terminology and shape of modern macroeconomics.[2] Published in February 1936 it sought to bring about a revolution, commonly referred to as the "Keynesian Revolution", in the way economists thought – especially in relation to the proposition that a market economy tends naturally to restore itself to full employment after temporary shocks. Regarded widely as the cornerstone of Keynesian thought, the book challenged the established classical economics and introduced important concepts such as the consumption function, the multiplier, the marginal efficiency of capital, the principle of effective demand and liquidity preference.

Book I Introduction Chapter 1: The General Theory Chapter 2: The Postulates of the Classical Economics Chapter 3: The Principle of Effective Demand Book II Definitions and Ideas Chapter 4: The Choice of Units Chapter 5. Expectation as Determining Output and Employment Chapter 6. The Definition of Income, Saving and Investment Appendix on User Cost Chapter 7. The Meaning of Saving and Investment Further Considered Book III The Propensity to Consume Chapter 8. The Propensity to Consume: I. The Objective Factors Chapter 9. The Propensity to Consume: II. The Subjective Factors Chapter 10. The Marginal Propensity to Consume and the Multiplier Book IV The Inducement to Invest Chapter 11. The Marginal Efficiency of Capital Chapter 12. The State of Long-term Expectation Chapter 13. The General Theory of the Rate of Interest Chapter 14. The Classical Theory of the Rate of Interest Appendix on the Rate of Interest in Marshall and Ricardo Chapter 15. The Psychological and Business Incentives to Liquidity Chapter 16. Sundry Observations on the Nature of Capital Chapter 17. The Essential Properties of Interest and Money Chapter 18. The General Theory of Employment Re-stated Book V Money-Wages and Prices Chapter 19. Changes in Money-Wages Appendix on Prof. Pigou's Theory of Unemployment Chapter 20. The Employment Function Chapter 21. The Theory of Prices Book VI Short Notes Suggested by the General Theory Chapter 22. Notes on the Trade Cycle Chapter 23. Notes on Merchantilism, the Usury Laws, Stamped Money and Theories of Under-consumption Chapter 24: Concluding Notes on the Social Philosophy towards which the General Theory might Lead

John Maynard Keynes, Baron Keynes of Tilton,CB FBA (5 June 1883 – 21 April 1946), was a British economist whose ideas have profoundly affected the theory and practice of modern macroeconomics, as well as the economic policies of governments. He greatly refined earlier work on the causes of business cycles, and advocated the use of fiscal and monetary measures to mitigate the adverse effects of economic recessions and depressions. His ideas are the basis for the school of thought known as Keynesian economics, as well as its various offshoots.

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