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.
Collins Dictionary of Sociology, 3rd ed. © HarperCollins Publishers 2000
References in periodicals archive ?
(35) American Keynsianism's belief in government spending helped lay the groundwork for the American semi-welfarist state, which under the New Deal and Great Society sought to redistribute wealth, create full employment, and fight poverty.
Yet given the still central role privatised Keynsianism continues to play, he can't really get to grips with the underlying political economy that is premised on debt-driven growth rather than, say, full employment or higher wages.
Mcllroy and Richard Croucher exploring the "limits of neoliberalism" in their chapter on "Skills and Training" comment that "In twenty-first century Anglo-American capitalism the poor get neoliberalism; the rich still get Keynsianism" (283) and follow this up with a note comparing this judgement with "the us socialist saying 'Ice is what the poor get in winter and the rich in summer'" (309).
Keynsianism took full credit for the post-WWII-era prosperity, but in reality it was never put to the test.
Hall, ed., The Political Power of Economic Ideas: Keynsianism Across Nations (Princeton: Princeton University Press, 1989), p.