During the twentieth century, there were three men whose brilliance, conviction, and great knowledge in economy helped the world survive inflation, economic crisis, and other factors that can affect the financing sector.

Based on a survey conducted, many people believe that John Maynard Keynes is the greatest twentieth-century economist. He’s a British man who introduced the concept of macroeconomics, based on the philosophy of Alfred Marshall. He also established the relationship between investments and savings. With his Theory of Money, he argued that there is actually little relationship between savings and variations of interest rate. The rise and fall of savings is dependent on the changes in a person’s income as well as his expenses.

Joseph Alois Schumpeter is coming in next, and surprisingly, he’s one of Keyne’s loudest critics. He came from Moravia and lived his life as a political scientist and economist. His economic contribution can be felt in his new business cycle model. According to him, given the lack of any innovation or development, the business cycle will be stationary. Only an entrepreneur, who can bring in his ideas and innovation, can disturb the equilibrium, which in turn can lead to development.

John Kenneth Galbraith was an intense follower of Keynes and a former president of AEA, or the American Economic Association. He believes that the economic policies during the neoclassical period are devoid of any reality. Rather, an economic activity of a particular country is dependent not on laws but on the political and cultural factors within the nation. For example, government spending and advertising have major impacts on the finances not only of the state but of businesses as well.

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