Masters of Money

Topics: John Maynard Keynes, Great Depression, Karl Marx Pages: 6 (1519 words) Published: December 18, 2012
Masters of Money
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Masters of money
Masters of Money is a short TV series produced by BBC about three men whom it referred to as masters of money: Karl Marx, Friedrich Hayek and John Maynard Keynes.

M asters of Money - P art I – J ohn Keynes
The first in the series is about John Maynard Keynes (1883-1946). He was an alumnus of Eton and went to Cambridge. The documentary series covers his progress from there through the Bloomsbury Set to the birth of Keynesianism. When the First World War ended, Keynes was a part of the British delegation which went for the signing of the Treaty of Versailles. Out of step with the austerity measures imposed on Germany, he

resigned his post at the Treasury. The Conference of
write The
Consequences Of The Peace.
When he returned to Cambridge, he spent a lot of time
playing the stock market. The narrator of the
documentary, Stephanie Flanders, refers to this as
investing, but in reality, it is gambling. It was the time of 1929, in the lines on which most of the professional
investors played, Keynes bet on red, but the ball landed
on black. This led to the beginning of the Era of Great Depression where everybody lost . This incident made Keynes to learn an important lesson that it is luck which plays the most important factor


It is jokingly said that Keynes suggested the government to tear down the city of South London and rebuild it so as to generate more and more employment. The American Government had different ideas. It tried to create employment by engaging the unemployed in building the great Hoover Dam.

It was believed that the Second World War helped in curing the economic ills of the Great Depression. But in reality, during the War, the governments of Britain and America operated a cheap money policy. A similar thing was done by the British during the First World War in the form of issuance of Bradbury notes.

M aters Of Money - P art 2 - F riedrich Hayek
This documentary analyzes the views of three stalwarts on the issue of the financial crisis. The second part of the documentary on Mr. Hayek deals about how his theory of classical liberalism and his anti-views of Keynesian model can actually explain why the financial crisis has occurred. Mr. Hayek’s theory argues that it was the repercussion of more government involvement rather than just free market dynamics that has caused the downfall of the financial market in 2008.

Frederick Hayek is a radical free market economist who is a hardcore supporter of classical liberalism. His work on “How changing prices communicate information” is widely regarded as a huge achievement. Hence, while making this documentary, BBC editor Stephanie Flanders very rightly considers him as one of the stalwart who has shaped the 20th century economics. Mr. Hayek’s influence has nothing but grown tremendously in the post-recession period. His ideals on capitalism have gained strength but despite all the influence and network this economist has, there has not been any official endorsement of his theory – to completely dismantle government control from capitalism.

Frederick August Hayek (1899 - 1992) was born in Austria – Hungary. He was best known for his support of classical liberalism. He shared the Nobel Memorial Prize along with Gunnar Myrdal in economic sciences for his work on “Theory of economic fluctuations and money…and a deeper and penetrating analysis of the complete interdependence of economic, social and institutional phenomenon.” Some other noteworthy contributions by the economist has been in the areas of Systems thinking, jurisprudence, neuroscience and the history of ideas. He has mentioned time and again that his service in world war-1 has shaped his...
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