Question

Who is known as the founding father of Macroeconomics as a separate discipline?
1. John Maynard Keynes
2. Amartya Sen
3. Karl Marx
4. Adam Smith

Answer 1

Correct Answer - Option 1 : John Maynard Keynes

The correct answer is John Maynard Keynes.

• John Maynard Keynes is known as the founding father of Macroeconomics as a separate discipline.
  • He was born on June 5, 1883, in Cambridge.
  • He completed his degree in Mathematics and had also joined Civil Services in Britain.
  • He represented the British Treasury at the Conference of Versailles but resigned because he was against the heavy fine levied on Germany.
  • He expressed his concerns about the fine imposed on Germany in his book 'The Economic Consequences of Peace'.

• Keynesian Economics
  • In 1923, he published a book 'A Tract on Monetary Reform'. 'The General Theory of Employment, Interest and Money' published in 1936 made a revolutionary change in economics as a subject.
  • The book mainly focussed on two aspects employment and effective demand.
  • According to him, increasing employment will lead to more people buying more goods and hence demand will increase leading to economic progress.
  • He also stated that without the government's intervention full employment cannot be achieved.