Keynesian economics
E7217
Keynesian economics is a macroeconomic theory that emphasizes the role of aggregate demand and government intervention in stabilizing economic fluctuations and reducing unemployment.
Aliases (6)
Statements (49)
| Predicate | Object |
|---|---|
| instanceOf |
economic school of thought
→
macroeconomic theory → |
| aimsTo |
reduce unemployment
→
stabilize economic fluctuations → |
| appliedIn |
New Deal policies in the United States
→
postwar European economic policy → |
| associatedWith |
fiscal stimulus packages during recessions
→
stabilization policy frameworks used by many governments → |
| assumes |
involuntary unemployment can exist
→
markets may not clear quickly → short-run non-neutrality of money → |
| contrastsWith |
classical economics
→
neoclassical economics → |
| coreConcept |
insufficient aggregate demand causes recessions
→
prices and wages can be sticky → short-run output can deviate from potential output → |
| criticizedBy |
New classical macroeconomics
→
monetarism → |
| criticizedFor |
potential for higher inflation
→
reliance on discretionary fiscal policy → |
| developedInContextOf |
Great Depression
→
|
| emphasizes |
aggregate demand
→
government intervention → |
| historicallyDominant |
macroeconomic framework after World War II
→
|
| influenced |
New Keynesian economics
→
New neoclassical synthesis → post-Keynesian economics → |
| influencedBy |
The General Theory of Employment, Interest and Money
→
Treatise on Money → |
| namedAfter |
John Maynard Keynes
→
|
| policyImplication |
active stabilization policy
→
countercyclical budget deficits and surpluses → importance of demand management → |
| supportsPolicy |
automatic stabilizers
→
countercyclical fiscal policy → deficit spending during recessions → discretionary fiscal stimulus → monetary policy to influence interest rates → progressive taxation → public works programs → unemployment benefits → |
| usesConcept |
IS-LM model
→
aggregate demand curve → consumption function → liquidity preference → marginal propensity to consume → multiplier effect → output gap → |
| viewsBusinessCyclesAs |
demand-driven fluctuations
→
|
Referenced by (14)
| Subject (surface form when different) | Predicate |
|---|---|
|
Bancor
→
John B. Taylor → Nordic model → The Price of Inequality → |
influencedBy |
|
IS-LM model
("Keynesian cross")
→
The General Theory of Employment, Interest and Money ("Keynesian cross") → The General Theory of Employment, Interest and Money ("IS–LM model") → |
relatedConcept |
|
John Maynard Keynes
("Keynesian economic policy")
→
Principles of Political Economy → |
influenced |
|
neoclassical economics
→
|
contrastedWith |
|
New Classical macroeconomics
("Keynesian macroeconomics")
→
|
contrastsWith |
|
Public Works Administration
("Keynesian fiscal stimulus")
→
|
economicPolicyType |
|
Nicholas Kaldor
("Keynesianism")
→
|
ideology |
|
John Maynard Keynes
→
|
knownFor |