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 ?
More specifically, a trainee in the tradition of Keynesian economics uses his/her brain deliberately while learning Keynesian economics.
Whereas the Great Depression of the 1930s produced Keynesian economics, and the stagflation of the 1970s produced Milton Friedman's monetarism, the Great Recession has produced no similar intellectual shift.
The 'Keynesian critique' developed in the book endorses German rather than French thinking on the enlightenment (that is, highlighting 'groundedness', downplaying abstraction) and thereby provides methodological guides for post-Keynesianism's emphases on economic dynamics.
In the long run, however, it is the Keynesian Revolution that is dead.
You write: "That is, in my view, there are the fiscal Keynesians, and the monetarist Keynesians.
Keynesian economics was out neoclassical economics was back in and Milton Friedman was the new guru.
With his paper, Phillips managed to return a raison d'etre to Keynesian economics that it had been lacking in the postwar years.
The Keynesians provide good recession/depression recommendations.
There is also a contradiction in file present policies supported by Keynesians (and, therefore, most governments).
He has shown in his work, most notably with Silvia Ardagna, that the common Keynesian assumption--not only embedded deeply within macroeconomic theory, but also intrinsic to it--that increases in public spending during recessions will promote more rapid economic and employment growth is an assumption that may be contrary to the actual facts.
THE NEW AMERICAN analyzed this "wonderful experiment in Keynesian economics" to see if the lackluster growth following the latest recession can be attributed to too much government debt (as the Austrians say) or to a quick end to the experiment by fiscal austerity and too much government belt-tightening (as the Keynesians say), using proofs in a manner typical of Keynesians.
The crash has also renewed interest in Keynesian economics, which holds that free markets are prone to failures, breakdowns, and recessions due to excessive production (supply) and can be cured of slumps only by state intervention to boost demand and dictate investment.