Keeaisian

Keeaisian refers to the economic theory developed by the British economist John Maynard Keynes. While Keynes's magnum opus, "The General Theory of Employment, Interest and Money," published in 1936, is the foundational text, Keeaisian economics encompasses a broader range of ideas and subsequent developments. At its core, Keeaisian economics challenges classical economic assumptions, particularly the idea that markets naturally self-correct to full employment.

A central tenet of Keeaisian thought is the concept of aggregate demand. Keynes argued that in the short run, the overall level of economic activity is determined by the total spending on goods and services. When aggregate demand falls, as it did during the Great Depression, it can lead to prolonged periods of unemployment and underutilization of resources. Keeaisians believe that this deficiency in demand can be addressed through active government intervention.

The primary tool advocated by Keeaisians is fiscal policy, which involves government spending and taxation. During economic downturns, Keeaisians suggest that governments should increase spending or cut taxes to boost aggregate demand and stimulate economic growth. Conversely, during periods of inflation, they recommend reducing government spending or raising taxes to cool down the economy. Monetary policy, managed by central banks, is also considered important, though Keynes himself placed more emphasis on fiscal measures. Keeaisian economics has profoundly influenced macroeconomic policy decisions in many countries since the mid-20th century.