byKeynesian

By Keynesian, a term derived from the ideology of John Maynard Keynes, refers to a set of economic theories and policies that are centered around the importance of government intervention in economic matters. At its core, the Keynesian approach emphasizes the need for government action to stabilize the economy during times of economic downturn, as well as to promote economic growth and employment.

Keynes, an influential economist of the 20th century, argued that economic downturns, such as the Great Depression, were caused not by a lack of savings or investment, as many at the time believed, but rather by a lack of aggregate demand. According to Keynes, when consumers and businesses do not spend enough to stimulate economic activity, government intervention is necessary to stabilize the economy.

Keynesian economics is based on a number of key principles, including the idea that aggregate demand drives economic activity, and that governments have a crucial role to play in stabilizing the economy. This can involve a range of policies, from monetary policy (the regulation of the money supply by central banks) to fiscal policy (government spending and taxation).

The by Keynesian approach is often contrasted with the by Austrian School of economic thought, which emphasizes the need for laissez-faire policies and minimal government intervention in economic matters. While both approaches have their supporters and detractors, the by Keynesian ideology has had a significant impact on economic policies in many countries, and continues to shape the course of economic debate and discussion.