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Chapter 1: Problem 15

How did John Maynard Keynes define economics?

Short Answer

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John Maynard Keynes defined economics as "the science of thinking in terms of models joined to the art of choosing models which are relevant to the contemporary world." This emphasizes the use of models to analyze and understand economic phenomena, and the importance of choosing models relevant to real-world scenarios, promoting a flexible and adaptable approach to applying economic theories.

Step by step solution

01

Definition provided by Keynes

John Maynard Keynes, a British economist, defined economics as "the science of thinking in terms of models joined to the art of choosing models which are relevant to the contemporary world." This definition highlights the importance of using models to analyze, predict and understand economic phenomena.
02

Importance and Relevance

The definition provided by Keynes emphasizes the use of models as a tool for understanding various economic processes. Additionally, it suggests that economists should choose models that are relevant to the real-world scenarios, taking contemporary issues and conditions into account when applying these models for analysis and decision-making. This approach is still widely accepted today, as it promotes a flexible, adaptable, and practical application of economic theories to address relevant issues and concerns.

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