Keynesian economics

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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 ?
Keynesian policies have made a comeback in the shape of Job GuaArantee programmes.
Part of the answer, of course, is that the stagflation of the 1970s discredited Keynesian policies and state intervention more generally.
In conjunction with strict regulation of the financial sector, Keynesian policies worked like a charm for almost three decades following the Second World War.
Keynesian policies advocate deficit spending and expansionary monetary policy.
Second, Krugman fails to explain why the Keynesian policies vindicated in 2008-2009 were so rapidly reversed and replaced by fiscal austerity.
Second, Krugman fails to explain why the Keynesian policies vindicated in 2008-09 were so rapidly reversed and replaced by fiscal austerity.
He says that large chunks of money created by companies that develop and deploy AI will have to be transferred to displaced workers through Keynesian policies of taxation and increased government spending.
At the same time, analysis of Ropke's approach to inflation and what he regarded as the role played by Keynesian policies in fostering it illustrates that much of Ropke's critique flowed from his basic dispute with Keynesians about the nature of economics.
Keynesian policies, however, resort to fiscal policy and not only to monetary policy.
Europeans who are considering Keynesian policies are faced with the costly legacy of past public-investment projects.
When the American economy came to the brink of collapse in 2008 and the great recession began, both the Bush and later the Obama administration adopted Keynesian policies.
Krugman's lawyer said although he is going through a debt crisis, he still supports Keynesian policies."