The General Theory

John Maynard Keynes’s seminal 1936 work, The General Theory of Employment, Interest and Money, which laid the foundations for modern macroeconomics by arguing that aggregate demand determines output and employment, rejecting the classical assumption of self-correcting full employment.

Claims that use this term

• Keynes wrote the General Theory to save capitalism from fascism and socialism
• Britain’s 1931 protectionist shift drove Keynes to write his General Theory.