When I was in graduate school studying Economics decades ago there were two names that were most prominent: Karl Marx and John Maynard Keynes.
It was the early 1970s, and revolution was still in the air, so Marx
was more popular with students. For me it was simple. In Marx’s landmark
Das Kapital (Capital) he showed how Capitalism
contains the seeds of its own ruin, becoming increasingly monopolistic
until declining profits result in system collapse. It seemed pretty
obvious then, and seems even more obvious now.
As popular as Marx was among the students, he was largely ignored by
the faculty, who were focused in various ways on making Capitalism work.
There were two approaches to advancing this agenda, Monetarism – controlling the money supply, and Keynesianism,
the use of taxation and government spending to stimulate the economy in
recessions and depressions and slowing it down in times of rapid
expansion. It is the art of balancing boom and bust. Keynes's renowned
work The General Theory of Employment, Interest and Money introduced his ideas in great detail.
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