Frank Okunak Discusses Macroeconomics and the Influence of John Maynard Keynes

Frank Okunak is a business leader with experience running both both small start-up ventures and large-scale global firms. In the following article, Frank Okunak discusses the connection between John Maynard Keynes and macroeconomics, as well as an overview of how macroeconomics are still in use today through three modern applications.

In the world of economics, macroeconomics still holds relevance as the study of markets, consumers, and even governments' behavior continues. However, Frank Okunak reports that some audiences do not understand the connection between Macroeconomics and John Maynard Keynes.

John Maynard Keynes was an economist hailing from Britain in the early 20th century. He is responsible for having founded not only what is now known as Keynesian economics, but macroeconomics as a whole. These applications are still used as a field of study today in issues such as unemployment, GDP, and inflation.

Macroeconomics and John Maynard Keynes

Frank Okunak reports that John Maynard Keynes is credited with being the founder of what is now known as macroeconomics. Keynes was inspired to pursue the study by lecturer at Cambridge University and his father, John Neville Keynes. The fact that his mother was also deeply involved in acts of charity which probably spurred on his interest in economic trends, as well.

John Maynard Keynes kicked his career in economics off by noticing the 1929 crash of the stock market, which ushered in what is now known as the Great Depression explains Frank Okunak. Though he had believed in unrestricted capitalism of a free-market nature where the government had little to no involvement, the crash of the stock market turned Keynes' beliefs around.

Instead, he came to declare that a new formula was needed and theorized that governments ought to actively get involve in the economy of their own country in the form of federal spending, even if it caused budget deficits. Frank Okunak explains that this became known as Keynesian economics.

Because John Maynard Keynes advocated for governmental involvement in a country's economy, he is thought of as the father of macroeconomics; after all, macroeconomics is the study of a large system and market, what could be larger than the relationship between a government and the economy?

Since the birth of Keynesian Economics as an idea, the government has gotten involved in the economy of its country, specifically in the United States, multiple times. One of the most recent examples was COVID-19 stimulus checks, a type of financial relief offered during the pandemic of the year 2020.

Frank Okunak takes a look at some other recent examples proving that macroeconomics and John Maynard Keynes are still connected, and used, to this day.

Proof That Macroeconomics Are Still Used Today

Below, Frank Okunak provides a list of three topics currently relevant in discussion which prove that macroeconomics, such as were founded by John Maynard Keynes, are still in use to this day:

• Unemployment One of the biggest inputs to a country is labor of its citizens. When unemployment rates are high, it means that an economy is not fulfilling its optimal prduction potential. Since economics as a study is dedicated to satisfying those with limited needs, unemployment is definitely a current macroeconomic issue.


• GDP Real Gross Domestic Products are a way to measure how valuable all services and goods that an economy produces in any given period are. It can be claossified as a way to measure a large system, and therefore, as macroeconomics, because the discussion of GDP indicates the growth or decline of an economy's output.


• Inflation Inflation is another often-discussed issue throughout the world today. It is a word meant to reference the overall rise in price levels in any given economy. It affects individuals because goods they might budget for one month can go up in price the next month, meaning an individual may need to purchase fewer resources to stick to a specific budget.

Frank Okunak explains that all three of these issues are examples of macroeconomics, the same field of study established by 20th century economist John Maynard Keynes, because the government is actively getting involved in the solutions or discussions of these issues.

For example, Frank Okunak says that currently, the United States is trying to manage the fact that when people work more, lowering unemployment levels, they demand more in terms of products to purchase, causing prices to rise and inflation to increase in the economy.

In Conclusion

To sum it all up, modern macroeconomics are beholden to John Maynard Keynes, an economist from the 20thcentury, for their establishment as a field of study. This field of study is still relevant today in discussions such as unemployment issues, GDP, and monetary inflation trends.