Keynesian economics


Also found in: Dictionary, Thesaurus, Financial, Wikipedia.
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 ?
Dissent on Keynes: A Critical Appraisal of Keynesian Economics.
Review of Henry Hazlitt's Critics of Keynesian Economics.
Keynesian economics was out neoclassical economics was back in and Milton Friedman was the new guru.
A Guide to Post Keynesian Economics, London: Macmillan.
Having already established the link between Keynesian economics, national accounts, and double-entry bookkeeping, the concluding chapter of Double Entry seeks to extend the national accounts methodology to include environmental accounting.
The exploitation of the inflation-unemployment tradeoff soon became the central tenet of Keynesian economics.
In 13 fascinating chapters he exposes many of our government-induced liberal problems, such as central planning, the Federal Reserve that allows our massive government deficit spending, the thousands of expensive and freedom-killing government regulations, socialized medicine and "ObamaCare," federal green energy and housing subsidies, the education monopoly, Keynesian economic cluelessness, gun control, and the War on Drugs.
The second problem is that both Keynesian economics and the political process are almost entirely focused on short-run demand-side concerns while largely ignoring the long-run importance of economic productivity.
He identifies a number of dubious claims regarding Keynesian economics.
That Keynes entitled his work The General Theory of Employment (1936), the antithesis of Pigou's Theory of Unemployment (1933) stirs the imagination as to the extent that Pigou's theories gave rise to Keynesian Economics.
The Elgar Companion to Post Keynesian Economics, Edward Elgar, Cheltenham, UK and Northampton, MA, pp.