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 ?
Keynsian economics are now coming to the fore, whereby the economy is stimulated by vast much needed investment in our infrastructure.
Two key names in the commercial development sector have joined forces to form a partnership aimed at taking advantage of the Government's recent commitment to Keynsian economics.
Topics include accounting identities, post-Keynsian economic modeling, modeling income complexity, complex dynamics, complexity analysis for enterprise and investment, the Moore credit supply curve, endogenous money in the Eurosystem, the supply of credit, the demand for endogenous money, monetary policy, gradualism in the adjustment of official interest rates, limitations to Keynsian demand management and the future of Keynsian economics.