Keynes and the financial crisis of 1929, overview of the great depression

Abstract

The following paper is an essay about the Great Depression (crisis of 1929) and the theory that Keynes proposed to arise from it with the aim of understanding and publicizing three important topics of the book "De Keynes a Keynes. La Crisis Económica Global, En Perspectiva Histórica" by the author Federico Novelo Urdanivia; where the first topic exposed covers all kinds of information about the Great Depression: Its emergence, background, effects it brought with it and how the world economy was harmed by the aforementioned financial crisis; the second topic is led by the economist John Maynard Keynes, where his analysis of the economy during the Great Depression is explained and how he founded the Keynesian theory, pioneer of macroeconomics, as a result of it; And the last topic mentions the return of Keynes, although his theory was highly criticized, he returned with superior contributions and new economic terms, such as scarcity and aggregate demand, which helped to face the economic crisis that was happening at that time. The essay culminates with its respective conclusions, highlighting that Keynes' theory was very apt to face the financial crisis of the time, since his proposals became very useful in order to address the various ways in which these are presented before an economic crisis, and by empowering financial institutions, this theory was and remains one of the most studied in economics.