PAKISTAN ECONOMY

MUHAMMAD KASHIF BUS-17F-014

HIZBULLAH CHANDIO BUS-17F-0
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IBRAHIM SOHAIL BUS-17F-013
 JOHN
JOHNMAYNARD
MAYNARD
KEYNES
KEYNES
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EARLY
EARLY LIFE
LIFE
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 John Maynard Keynes was born
in Cambridge, Cambridge shire, England, 5 June 1883, to
an upper-middle-class family.
 His father, John Neville Keynes, was an economist and a
lecturer in Moral sciences at the University of Cambridge
and his mother Florence Ada Keynes a local social
reformer.
 Keynes was the first born, and was followed by two more
siblings – Margaret Neville Keynes and Geoffrey
Keynes.

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CONTINUE…

 John Maynard Keynes entered into a romantic

relationship with Lydia Lopokova, a well-known
Russian ballerina and married her in 1925.

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EDUCATIO
EDUCATIO
N
N
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 In January 1889 at the age of five and a half, Keynes
started at the kindergarten of the Perse School for Girls
and boys.
 He quickly showed a talent for arithmetic, but his
health was poor leading to several long absences.
 He was tutored at home by a governess, Beatrice
Mackintosh, and his Mother
 In January 1892, at eight and a half, he started as a day
at St Faith's Preparatory School.
  Academically bright, he gained a scholarship that
earned him a place at Eton College in 1897.
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CONTIINUE…

 Itwas at Eton that he developed his love for mathematics,

classics and history.
 He won yet another scholarship in 1902 which led him to
move to King’s College, Cambridge.
 While at Cambridge, economist Alfred Marshall beg him to
study economics but in vain as Keynes became interested in
philosophy instead.
 In 1904, Keynes graduated with a Bachelor’s degree in
Mathematics. Thereafter, he spent two years at the university
campus, taking part in debates, studying philosophy and
informally attending economics lectures as a graduate student
for a term.
 This marked his only formal education in economics. In 1905,
Keynes studied for Tripos and in the following year took civil
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service exams.
CAREER
CAREER

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 In 1906, Keynes began his career in civil service as a clerk at the
India Office. In 1908 he resigned from his duty and return to
Cambridge. At Cambridge, he began to work on probability theory.
 In 1909, Keynes published his first professional economics article
in the ‘Economics Journal’, on the effect of a global economic
downturn on India.
 In the same year, he accepted the post of a lecturer of economics in
Cambridge offered by Marshall.
 In 1913, based on his experience at the India Office, Keynes
published his first book titled ‘Indian Currency and Finance.’
 Following this publication, he was appointed to the Royal
Commission on Indian Currency and Finance.
 With the beginning of the World War I, Keynes was called on by
the British government for his expertise. In 1915, he accepted a
post at the Treasury. 10
 CONTINUE….

 In 1919, he was appointed financial representative for the

Treasury to the Versailles peace conference.
 Based on his arguments against the compensation imposed
on Germans in the damaging Treaty of Versailles, he penned
a highly influential book titled, ‘The Economic
Consequences of the Peace’ in 1919. Following he resigns
his job.
 In 1921, he published the book, ‘A Treatise on Probability.’
Considered an important work, it laid a philosophical and
mathematical foundation of the probability theory.
 In 1925, when Winston Churchill re-established the gold
standard the standard had a depressing effect on Britain’s
economy. In response to it, Keynes came up with his work,
‘The Economic Consequences of Mr Churchill’ that finally 11

led to the abandonment of gold standard in 1931.

 CONTINUE…
 In 1930, Keynes came up with two volumes of ‘Treatise of Money’
in which he stated that the amount of money saved should not
exceed the amount of money invested.
 In 1936, Keynes came up with his masterpiece, titled ‘The General
Theory of Unemployment, Interest and Money.’ Keynes argued
through his book that full employment could be maintained only
with the help of government spending.
 With the beginning of the World War II, Keynes came to be
regarded as the most influential economist in Britain. In 1937, he
suffered from a severe heart attack. Two years later, he returned to
teaching at the Cambridge.
 Meanwhile, he penned an influential book on war finances ‘How to
Pay for the War.’ Published in 1940, the book insisted that the war
effort should be financed by higher taxation and compulsory saving
rather than deficit spending so as to avoid inflation. 12
 CONTINUE…

 He served as the leader of the British delegation and chairman of the

World Bank commission in the 1944 Bretton Woods conference.
 He suffered from a series of heart attacks. On returning to England,
he suffered from yet another heart attack on April 21, 1946, which
caused his death. He was aged 62.
 In his lifetime and afterwards, Keynes has been referred to as one of
the most influential economists of the 20th century. In 1999, to
mark his legacy, ‘TIME’ magazine listed him on the ‘Most
Important People of the Century’ list. Britain’s paper, ‘The
Economist’ described him as the ‘Britain’s Most Famous 20th
Century Economist.

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THANK
THANK YOU
YOU
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