Keynesian economics

Keynesian economics,

Definition of Keynesian economics:

  1. Subsequently, Keynesian economics was used to refer to the concept that optimal economic performance could be achieved—and economic slumps prevented—by influencing aggregate demand through activist stabilization and economic intervention policies by the government. Keynesian economics is considered a "demand-side" theory that focuses on changes in the economy over the short run.

  2. Keynesian economics is an economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed by the British economist John Maynard Keynes during the 1930s in an attempt to understand the Great Depression. Keynes advocated for increased government expenditures and lower taxes to stimulate demand and pull the global economy out of the depression.

  3. A school of economic thought founded by the UK economist John Maynard Keynes (1883-1946) and developed by his followers. In 1936, at the height of the great depression, Keynes landmark book The General Theory Of Employment, Interest And Money caused a paradigm shift for economics: it suddenly replaced their emphasis on study of the economic behavior of individuals and companies (microeconomics) to the study of the behavior of the economy as a whole (macroeconomics).

    The main plank of his revolutionary theory is the assertion that the aggregate demand created by households, businesses and the government and not the dynamics of free markets is the most important driving force in an economy. This theory further asserts that free markets have no self-balancing mechanisms that lead to full employment. Keynesian economists urge and justify a governments intervention in the economy through public policies that aim to achieve full employment and price stability. Their ideas have greatly influenced governments the world-over in accepting their responsibility to provide full or near-full employment through measures (such as deficit spending) that stimulate aggregate demand. See also classical economics, neo-classical Economics, new classical economics and supply side economics.

  4. Economic theory or practice based on the ideas of Keynes, especially the belief that the state should play a role in regulating the economy.

How to use Keynesian economics in a sentence?

  1. I referenced Keynesian Economics to my friend in our debate on the merits of analyzing different aspects of the trade agreement.
  2. Keynes developed his theories in response to the Great Depression, and was highly critical of classical economic arguments that natural economic forces and incentives would be sufficient to help the economy recover.
  3. I referenced Keynesian Economics to my friend in our debate on the merits of analyzing different aspects of the trade agreement.
  4. Communism and Keynesian economics are both great in theory, but politicians never save enough wealth in the good times as Keynesian economics demands.
  5. Keynesian Economics focuses on using active government policy to manage aggregate demand in order to address or prevent economic recessions.
  6. Activist fiscal and monetary policy are the primary tools recommended by Keynesian economists to manage the economy and fight unemployment.

Meaning of Keynesian economics & Keynesian economics Definition