||Instability Analysis in J. M. Keynes’s Works
||Abgaldaev V.Y. candidate of economic sciences, associate professor, assistant professor, firstname.lastname@example.orgOsodoeva O.A. doctor of economic sciences, professor, email@example.comSaktoev V.. ,
||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.
||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.
||instability, financial crisis,
credit, investments, financial
activity, industrial activity,
stock market, crash, USA,
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