Article name Instability Analysis in J. M. Keynes’s Works
Authors Abgaldaev V.Y. candidate of economic sciences, associate professor, assistant professor,
Osodoeva O.A. doctor of economic sciences, professor,
Saktoev V.. ,
Bibliographic description Abgaldaev V.Yu., Osodoeva O. A., Saktoev V. E. Instability analysis in J. M. Keynes’s works // Transbaikal State University Journal. 2023. Vol. 29, no. 3. P. 143–155. DOI: 10.2109/2227-9245-2023-29-3-143-155.
Category Economy
DOI 336.11
DOI 10.2109/2227-9245-2023-29-3-143-155
Article type Original article
Annotation The authors examine the works of J. M. Keynes, where the instability causes led to the stock market crash in the USA in 1929 are studied. It was found that the institutional changes in the monetary and financial spheres were the favorable instability macroeconomic environment as a market economy attribute. It is revealed that Keynes, while conducting the instability macroeconomic analysis, followed to the banking tradition, taking the bank loan for the basis. However, the novelty of his analysis is the investment relationship with profit and credit usage in financial transactions that gave the opportunity to understand the financial crisis causes. In addition, it is determined that the investor expectations’ changes, its impact on banks money supply the entrepreneurs in order to meet their investment demand using a bank loan is the instability source. Thus, Keynes has found that in such conditions there is an effect of industrial turnover displacement by financial circulation, which has led to crisis. At the same time it is clarified that the «Treatise» is the origin of the «»Keynesian revolution», that has raised the necessity to develop new fundamental approaches for the depression causes understanding. Keynes has revealed the interaction of industrial turnover with financial circulation that allowed state authorities to resort to new practices in country economy management that is very actual for Russian contemporary economy. The analysis of instability allows to conclude that the financial crisis arises from the economic and political environment deterioration, where the monetary authorities are unable to control, that contributes to the growth of financial speculation in the financial market, the acceleration of the deflation process and mass unemployment.
Key words instability, financial crisis, credit, investments, financial activity, industrial activity, stock market, crash, USA, liquidity
Article information
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