John Maynard Keynes entered the world on the 5th of June 1883 in Cambridge, England. His father worked as an economist at the University of Cambridge while his mother became a local social reformer and later the town's second female mayor.
John Maynard Keynes resigned from the Treasury because he was disgusted by the results of the 1919 Versailles peace conference both on moral and economic grounds. He proposed radical writing down of war debts but America opposed the plan while Wilson started to believe in merits of harsh peace.
John Maynard Keynes published The General Theory of Employment Interest and Money in early 1936. This work served as theoretical justification for interventionist policies he favored for tackling recession and challenged earlier neoclassical economic paradigm which held that unfettered markets would naturally establish full employment equilibrium.
John Maynard Keynes heavily involved as leader British delegation and chairman World Bank commission in mid-1944 negotiations establishing Bretton Woods system. He proposed creation common world unit currency called bancor plus new global institutions including world central bank and International Clearing Union though US greater negotiating strength meant outcomes accorded more closely to conservative plans Harry Dexter White.
Milton Friedman emerged formidable critic John Maynard Keynes economics mid-1950s especially after 1963 publication Monetary History United States. Friedman published paper arguing fixed relationship implied Philips curve did not exist in 1968 suggesting sustained Keynesian policies could lead unemployment inflation rising once phenomenon soon known stagflation.
March 2008 Martin Wolf chief economics commentator Financial Times announced death dream global free-market capitalism while macroeconomist James K. Galbraith used 25th Annual Milton Friedman Distinguished Lecture launch sweeping attack consensus monetarist economics argued Keynesian economics far more relevant tackling emerging crises. Leaders meeting April 2009 G-20 London summit agreed allow $250 billion special drawing rights created IMF distributed globally following series major bailouts pursued during 2008 financial crisis starting the 7th of September 2008 announcement US Government nationalize two government-sponsored enterprises oversaw most US subprime mortgage market Fannie Mae Freddie Mac.