keynesiläisen

Keynesiläinen refers to economic theories and policies inspired by the work of British economist John Maynard Keynes. His seminal work, "The General Theory of Employment, Interest and Money," published in 1936, challenged classical economic thought by arguing that aggregate demand plays a crucial role in determining the overall level of economic activity.

Keynesian economics suggests that during economic downturns, a lack of sufficient demand can lead to prolonged periods of unemployment and underutilized resources. Unlike classical economists who believed markets would self-correct, Keynes argued that government intervention is often necessary to stimulate demand and restore full employment.

The primary tool advocated by Keynesians for managing the economy is fiscal policy, which involves the government adjusting its spending and taxation levels. During recessions, Keynesians typically recommend increasing government spending (e.g., on infrastructure projects) or cutting taxes to boost aggregate demand. Conversely, during periods of excessive inflation, they might suggest reducing government spending or increasing taxes to cool down the economy.

Monetary policy, managed by central banks, is also a key component of Keynesian recommendations. Central banks can influence interest rates and the money supply to encourage or discourage borrowing and investment, thereby affecting aggregate demand.

Keynesian economics has been highly influential in shaping post-World War II economic policy in many countries, particularly in the context of managing business cycles and responding to recessions. While it has faced criticism and undergone various modifications over time, its core ideas about the importance of aggregate demand and the potential role of government in stabilizing the economy remain central to much macroeconomic debate.