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 ?
Thus, in a "full unemployment" situation, it would be advisable and feasible to undertake Keynesian demand policies; though, Hayek points out that as soon as this situation of "abundance" ended, such policies would again be extremely dangerous.
Are the Keynesians convinced that oil will soon reach $150 per barrel?
And so the False Keynesians went home--Romer back to Berkeley, Summers to Harvard.
These New Keynesians accepted the methodological dictums of the New Classical economics: that constrained maximization of profit and utility functions is the appropriate microfoundation for macroeconomics.
Keynesian and monetarist theories dominate macro-economics in general and balance of payments theories in particular.
Although the authors do not say it this way, the fundamental difference between the New Keynesian literature and the New Monetarist literature they describe is that the New Keynesians write for the policymaker who needs answers today and the New Monetarists include almost everyone doing basic research on monetary theory.
Keynesian policies, however, resort to fiscal policy and not only to monetary policy.
The other way they could have bolstered their economies, at a time when their banks and businesses were reeling and had no capacity to invest, was to follow the Keynesian course of having their governments invest more by enacting a stimulus, as our government did at the outset of Barack Obama's presidency.
While Keynesians spent the 1960s congratulating each other, not everyone had jumped onto the Phillips Curve bandwagon.
The Keynesians argue for increased government spending.
Moreover, the roots of the financial and economic crisis are exactly the opposite of what Keynesians usually assume.
The Keynesian explanation is that we're still recovering from the financial panic, though it's worth recalling that in January 2010 the Fed predicted that growth in 2012 would be 3.