Keynesian economics


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Related to Keynesian economics: Austrian economics

Keynesian economics

(ECONOMICS) an account of the working of macroeconomic systems first propounded by John Maynard KEYNES, in which it is assumed that the economy is not self-managing and that governments must act to avoid prolonged recessions and secure FULL EMPLOYMENT. Directly at odds with much that had been previously assumed (see NEOCLASSICAL ECONOMICS), Keynes proposed government management of the economy – through monetary as well as fiscal policies – in which government expenditure would be increased at times of recession and reduced at times of FULL EMPLOYMENT and INFLATION, thus controlling aggregate demand within the economy. The adoption of Keynesian policies by governments seemed to be successful until the 1960s, when inflation and lack of economic growth began to emerge as a problem. Since then, while Keynesian economics still has many supporters, other macroeconomic theories, notably MONETARISM, have been in the ascendant.
References in periodicals archive ?
Why makes Keynesian economics relevant to the Philippines today?
A Keynesian economist ultimately relegates the deliberately learned principles, ideas, and concepts to brain automaticity, and consequently, automatically interprets current economic events according to the principles of Keynesian economics.
(2015): "Export-led Growth vs Growth-led Exports: What Matters for the Brazilian Growth Experience after Trade Liberalization?", Review of Keynesian Economics, 3(1), 108-128.
Yet we are all worse off because of Keynesian economics. In a talk given on Keynes the man, Rothbard humorously concluded with the following words:
I appreciate your support for my "Autopsy" critique of Keynesian economics. However, I do have some objections to what you wrote.
In 1978, Garrison made his first attempt to link Austrian and Keynesian economics in New Directions in Austrian Economics (Spadaro 1978).
Rothbard, like Alvin Hansen, views the IS-LM model as the only possible correct interpretation of Keynes's theory: "That Keynes was a Keynesian--of that much derided Keynesian system provided by Hicks, Hansen, Samuelson, and Modigliani--is the only explanation that makes any sense of Keynesian economics" (Rothbard, 1992, p.
As preached and practiced since the 1960s, Keynesian economics promised to stabilize the economy at levels of low inflation and high employment.
MAY I thank Dave Anderson for his prompt response to my criticism of Labour's janus-like espousing Keynesian economics whilst using the camouflage of coalition funding cuts to get rid of things they didn't really want anyway in Newcastle.
Keynesian economics was out neoclassical economics was back in and Milton Friedman was the new guru.
In chapter 8, the connection between accounting, Keynesian economics, and national income accounting is traced to a "landmark 1940 pamphlet [in which] Keynes first developed a system of national accounts for the United Kingdom based on double-entry bookkeeping" (183).
With his paper, Phillips managed to return a raison d'etre to Keynesian economics that it had been lacking in the postwar years.