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'Spending is not the depletion of wealth, it is the transfer of ownership of money. And that transfer of ownership of money activates the economic activity that creates and maintains wealth.'........... The classic work on Macroeconomics by John Maynard Keynes called 'The General Theory of Employment, Interest and Money' is notoriously difficult to read. It was my initial goal to attempt to read and fully understand Keynes’ work and then to produce a study guide of sorts, in order to make his concepts more accessible. This attempt turned into a major project that took years to accomplish. I believe the result of that effort, this book, captures the essence of the most important concepts Keynes discovered. However, in the process I discovered that, in order to properly understand those concepts, new definitions for currently used terms and new ways of organizing macroeconomic models are necessary. One might think that attempts to do so would just make everything more complicated and difficult to understand, but the opposite is true. The way of organizing and explaining the concepts shown in this book leads to the development of a comprehensive and fully consistent model of macroeconomics, a model that is actually easier to understand. I hope you will agree.This a second edition of this book. Included in this edition are improvements in wording and presentation to make it more readable as well as an improved and expanded treatment of international trade.
