Nýkeynesísk

Nýkeynesísk is a term used in Icelandic economic discourse to describe a modern interpretation of Keynesian economic theory, adapted to contemporary challenges. The concept builds upon the ideas of British economist John Maynard Keynes, who emphasized government intervention in the economy to stabilize demand, particularly during recessions. Nýkeynesísk policies often focus on fiscal stimulus, such as increased public spending or tax cuts, to counteract economic downturns and promote growth.

The term gained prominence in Iceland following the 2008 financial crisis, when the country faced severe economic contraction. Icelandic policymakers and economists adopted Keynesian principles to revive the economy, including measures like infrastructure investment and social welfare expansion. Unlike traditional Keynesianism, which was sometimes criticized for excessive reliance on government debt, nýkeynesísk approaches often incorporate modern fiscal rules and debt sustainability considerations.

Key features of nýkeynesísk include a flexible monetary policy, coordinated fiscal measures, and a focus on long-term structural reforms. Critics argue that such policies may lead to higher public debt or inflation, while supporters emphasize their role in preventing prolonged economic stagnation. The term reflects Iceland’s pragmatic adaptation of Keynesian economics to address 21st-century economic challenges, balancing short-term recovery with sustainable growth.