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 ?
Two things are missing in the discussion of hysteresis: First, in contrast to the classical natural rate of unemployment the NAIRU as a typical brick of New Keynesian Economics and hysteresis should be mentioned.
Among the important findings is that Keynesian economics did not really take hold until the War, and by taking hold is meant Keynes as a central focus for theoretical and policy analysis.
Palley, Thomas, Louis-Phillippe Rochon & Matias Vernengo (2012) 'Economics and the economic crisis: the case for change' (Statement of the co-editors) Review of Keynesian Economics (Inaugural issue) Autumn, pp.
At the level of theory, a major factor in my view was the tragedy that post-war generations of students of economics, especially in the USA, were brought up on Paul Samuelson's (and Alvin Hansen's) textbook versions of Keynesian economics instead of on Lorie Tarshis's textbook, The Elements of Economics.
From its start, Keynesian economics was a brazen, short-range experiment in getting something for nothing, mingled with an embarrassing measure of self-delusion.
Many economists and policymakers believed that Keynesian economics provided a means to guarantee sustained economic growth and thus sustained full employment.
Keynesian economics advocated fiscal policy as the most effective tool for managing national economies.
This book by Paul Davidson, co-founder and editor of the Journal of Post Keynesian Economics, presents a careful reading of Keynes and a sharp critique of mainstream macroeconomics as it has developed in the years since Keynes.
For political reasons, Johnson refused even to consider a tax increase (1966 was an election year), which Keynesian economics dictated and practically every economist in the nation supported.
They have no understanding of Keynesian economics or of how that genius demonstrated the gross stupidity of the 1930s depression.
Barro [1] or - more briefly - a recent "Symposium on Keynesian Economics Today" [2] might be preferred.
The conservative line on Keynesian economics was that it was inflationist, socialist, or worse.