Who is credited with the creation of modern macroeconomics?

John Maynard Keynes is credited with the creation of modern macroeconomics primarily due to his groundbreaking work during the Great Depression in the 1930s. His ideas were revolutionary because they challenged the classical economic theories that dominated the time, which assumed that economies are self-correcting and that full employment would naturally occur.

Keynes proposed that during periods of economic downturns, such as recessions, it was necessary for governments to intervene in the economy through fiscal policy, including increased government spending and lower taxes, to stimulate demand and boost economic activity. His seminal work, "The General Theory of Employment, Interest, and Money," introduced key concepts such as aggregate demand, which have become foundational in understanding economic fluctuations and the role of government in stabilizing the economy.

The influence of Keynesian economics has been extensive, affecting not only economic theory but also influencing policymakers around the world in their approach to managing economies. His work laid the groundwork for modern macroeconomic theory, making him a central figure in the field.