Keynesian

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Keynesian

A scholar or other person who believes that government intervention is necessary to ensure an active and vibrant economy. According to this theory, government should stimulate demand for goods and services in order to encourage economic growth. It thus recommends tax cuts and increased government spending during recessions to reinvigorate growth; likewise, Keynesians recommend tax increases and spending cuts during economic expansion in order to combat inflation. Many economists believe that Keynesian economic theory is more efficient than supply-side economics, though critics point to the theory's inability to explain stagflation in the United States during the 1970s.
References in periodicals archive ?
Keynesianism rarely works well when confined only to one country, leading to beggar my neighbour policies with regard to demand and exchange rates.
First, it must be acknowledged that Keynesianism as a system to manage capitalism emerged out of capital's compromise with only one particular sector of the global working class: industrial, unionized, located in the global north, and generally white and male.
After monetarism, Keynesianism, "post" versions of each, macroeconomics settled down for a time to aim at one target, inflation, with one gun, the short-term interest rate.
Another point to note is that the Keynesianism of that time considered price movements as a cost plus markup phenomenon, a tradition carried over to the large scale econometric models of forty years later.
In short 'New Keynesianism throws bucket fulls of grit into the smooth-running neoclassical paradigms' (Leslie, 1993).
When the onset of stagflation in the 1970s undermined Keynesianism, social democrats had no alternatives to hand.
The old Keynesian tradition that was so popular in Britain might be called "extreme Keynesianism," as it takes some of Keynes's most provocative assertions, particularly the ineffectiveness of monetary policy, and places them right in the core of the model.
I call this pseudointellectual mishmash "vulgar Keynesianism.
The smaller states could not do Keynesianism in a hand basin.
On the one hand the book is an exploration of the competing value assumptions underlying a pair of taxation policies in Saskatchewan in a period when neo-liberalism displaced Keynesianism as the dominant economic paradigm.
Since the nadir of Keynesianism in the late 1970s and early 1980s, there has been a great revival of interest in the economics of the free market and especially in that school that, prior to Keynes and the almost mystical hold he had on the minds of so many people, was very widely accepted, the Austrian School of Economics.
The literature on the spread of Keynesianism from England to the United States is full and rich, dividing the glory or blame among individuals (such as Alvin Hansen), circumstances (the Depression), and the receptivity of the young (students) searching for a faith.