Keynes’s Consumption Function

Understanding Keynes's Consumption Function: A Guide to Spending Habits John Maynard Keynes, a renowned economist, revolutionized our understanding of macroeconomics with his groundbreaking work, "The General Theory of Employment, Interest, and Money". One of his key contributions was the development of the consumption function, a fundamental concept in explaining consumer behavior and its impact on …

Understanding Keynes’s Liquidity Trap

Trapped in the Mud: Understanding Keynes's Liquidity Trap The global economy is a complex beast, and sometimes it behaves in ways that defy intuition. One of the most intriguing anomalies is the liquidity trap, a concept developed by the renowned economist John Maynard Keynes. The liquidity trap describes a situation where monetary policy becomes ineffective. …

Banks Credit Creation

The Magic of Money: How Banks Create Credit (And Why It Matters) Have you ever wondered where money comes from? You might assume it all originates with governments, printing bills and coins. But that's only part of the story. Banks play a crucial role in creating money, through a process called credit creation. This might …

The Cambridge Equation: A Fundamental Formula for Understanding Money and Banking

The Cambridge Equation: A Fundamental Formula for Understanding Money and Banking The Cambridge Equation is a widely used formula in the field of economics that helps us understand the relationship between money, banking, and the economy. In this post, we'll delve into the meaning and significance of this equation, and explore its implications for money …