Economic thouht since Keynes PART1

Book has over 500 pages and right now I will focus on the fist part which have 149 pages. I can say that is not very well illustrated, you will find some diagrams mostly about unemployment borrowed from other books.

PART I OUTLINE OF A HISTORY OF ECONOMIC THOUGHT SINCE
Economic Thought Since Keynes outlines the evolution of economic thought since the publication of The General Theory, putting into perspective the trends, issues and developments in economics over the last half century. Part I contains an historical account of the schools, debates and issues.

The General Theory of Employment, Interest and Money was published in February 1936, the controversial book challenged the established classical economics and introduced important concepts such as the consumption function, the multiplier, the marginal efficiency of capital, the principle of effective demand and liquidity preference.

Keynesian Revolution took place in the years following the publication of Keynes's General Theory. It saw the neoclassical understanding of employment replaced with Keynes's view that demand, and not supply, is the driving factor determining levels of employment. The Keynesian Revolution was a fundamental reworking of economic theory concerning the factors determining employment levels in the overall economy. The revolution was set against the then orthodox economic framework: neoclassical economics.

In additional this first part puts the economic debates in the context of political economic policies. We can find some information about Keynesian interventionism in the 1940's and 1950's, the monetarist and supply side counter-revolutions of the 1960's and 1970's, the more sophisticated models of the new classical macroeconomics at roughly the same time, and the New Keynesian Macroeconomics of the 1980's. Each new contribution is therefore a response to recent developments that have influenced in some measure the "pressure of events."

Simple classical models failed to explain the prolonged existence of high unemployment during the Great Depression. This provided the impetus for the development of macroeconomics.

From the end of the Great Depression to the mid-1970s, Keynes provided the main inspiration for economic policy makers in Europe, America and much of the rest of the world. Keynes believed governments could intervene in the economy and affect the level of output and employment.. During periods of low private demand, the government can stimulate aggregate demand to lift the economy out of recession. The use of Keynesian policy to fine-tune the economy in the 1960s, led to disillusionment in the 1970s and early 1980s.