John Maynard Keynes had published economic theories regarding unemployment and solutions to economic recession. His most important work was the The General Theory of Employment, Interest and Money (1935–36) which contains these theories. His work was based off his support for government intervention in markets. He strongly affected fiscal policy until the 1970s, believing that when household savings exceeded investment, it caused deflation, and vice versa for inflation. This is why his primary view was that recessions and unemployment can be significantly reduced using government spending that was targeted at increasing aggregate demand. When aggregate demand increases, it incentivises firms to increase output and production to meet the increase in aggregate demand. As a result, unemployment falls, and revenue and profits rise for firms. This is important as it can lead to economic growth and therefore help the economy recover in time of a recession. ...