Keynesian Kenyan
Keynesian Kenyan by The Reverend McCready May 20, 2011
Get the Keynesian Kenyan mug.
Keynesianism
*noun*; a school of economic thought prevalent after World War 2; around 1980, Keynesianism was supposedly superseded by monetarism, and then by the rational expectations hypothesis. Theory is named for John M. Keynes (1881-1946), who argued against the then-mainstream view that the economy was "self correcting." Keynes' book introducing his economic theory was The General Theory of Employment, Interest, and Money (1936).
*Basic Concept*
_______________________________________
The basic concept of Keynesianism is that each economy has a level of aggregate demand, which does not respond to price or income levels in the same way that classical economics says it should. Rising income, for example, *does not* lead to a matching increase in consumption or business investment. Business investment is driven by investment opportunity, not {only] by interest rates. Savings is driven by liquidity preference, not only by interest rates.
Keynes suggested that, for any economy, there was a marginal propensity to consume that was less than one. Hence, if the national income rose by 10%, consumption would rise by something less than 10%. This would lead to some production not being consumed, waste, and unemployment.
*What Keynesianism Says We Should Do*
_______________________________________
In 1936, when Keynes wrote *The General Theory*, most of the world was suffering from the Great Depression. Keynes recommended that the national government stimulation aggregate demand through a policy of deficit stimulus. In other words, the country should create adequate levels of aggregate demand by spending more than it took in as taxes (fiscal policy).
Also, Keynesianism held that aggregate demand could be stimulated *up to a point* by lowering interest rates (monetary policy).
*Application*
_______________________________________
In the USA and other large industrial countries, fiscal and monetary policy has been attempted often. After 1980, the Federal Reserve chair (Paul Volcker) was a monetarist, who claimed to reject Keynesianism. Nobel laureates in economics almost unanimously attacked Keynesianism as outmoded and wrong-headed, but governments continue to use fiscal stimulus and interest rate cuts in response to recessions.
*Basic Concept*
_______________________________________
The basic concept of Keynesianism is that each economy has a level of aggregate demand, which does not respond to price or income levels in the same way that classical economics says it should. Rising income, for example, *does not* lead to a matching increase in consumption or business investment. Business investment is driven by investment opportunity, not {only] by interest rates. Savings is driven by liquidity preference, not only by interest rates.
Keynes suggested that, for any economy, there was a marginal propensity to consume that was less than one. Hence, if the national income rose by 10%, consumption would rise by something less than 10%. This would lead to some production not being consumed, waste, and unemployment.
*What Keynesianism Says We Should Do*
_______________________________________
In 1936, when Keynes wrote *The General Theory*, most of the world was suffering from the Great Depression. Keynes recommended that the national government stimulation aggregate demand through a policy of deficit stimulus. In other words, the country should create adequate levels of aggregate demand by spending more than it took in as taxes (fiscal policy).
Also, Keynesianism held that aggregate demand could be stimulated *up to a point* by lowering interest rates (monetary policy).
*Application*
_______________________________________
In the USA and other large industrial countries, fiscal and monetary policy has been attempted often. After 1980, the Federal Reserve chair (Paul Volcker) was a monetarist, who claimed to reject Keynesianism. Nobel laureates in economics almost unanimously attacked Keynesianism as outmoded and wrong-headed, but governments continue to use fiscal stimulus and interest rate cuts in response to recessions.
Keynesianism held out the prospect that the state could reconcile the private ownership of the means of production with democratic management of the economy.
Adam Przeworski, *Capitalism and social democracy* (1986)
Adam Przeworski, *Capitalism and social democracy* (1986)
Keynesianism by Abu Yahya March 3, 2009
Related Words
kevyn • Kevined • Kevinee • Keynesian • Keynesianism • keiynean • Kelyne • Kevanescence • Kevene • Kevine
Keynes Worker
An individual often seen in IT departments who desperately try to create work (usually resource allocation, request routing and approval related) in an attempt to give importance to whatever they are doing and preserve their jobs.
Keynes Worker by ashishram April 20, 2009
Skandar Keynes
Skandar Keynes, a 14 year old british actor best know for his role in the recent Chronicles of Narnia film as Edmund Pevensie. He lives in London and has 2 cats, Puss and Boots, and an older sister called Soumaya. He is distantly related to naturalist Charles Darwin.
Skandar Keynes by Barbie___x July 15, 2006
Milton keynes
A city in England. Home of the concreate Cows, lots of trees and a friggin awesome shopping center, PLUS many amazing people who all love Nigerians
Milton keynes by A box of Crackers Please February 8, 2010
Milton Keynes
A great borough, located between London an Birmingham and comprising of the towns Bletchley, Wolverton, Stony Stratford and Newport Pagnell. Ignorant outsiders often mock MK, mistaking it as just the shopping centre and crying because a simple grid system is too hard for their special little brains.
Most people are jealous of Milton Keynes, resorting to abusing a place where people live, You'd think they had better things to do? A main focus when "slaggin off" MK is that we lack history, seeing as we are a NEW town I believe the enigma at bletchley park, the birth of the phrase "cock and bull story" and the ROMAN, yes roman, villa's at Bancroft are a start for history.
MK can also boast many lakes, woodland areas, parks and an extensive redway system. Pubs and Clubs are also in abundance, with many on canal side or overlooking pleasant views. There are things to do for everyone, for example, an indoor ski slope, two multiplex cinemas (one being the first in Europe) a theatre, many leisure centres, the national hockey stadium, the national badminton centre, stadium:MK, the bowl, an indoor ice rink, (with a hockey team that has won the English Premier Ice Hockey League 5 seasons running) a theme park for children, a wakeboarding centre as well as a vast selection of restaurants set in amazing scenery and much more.
Basically, the people who live here love it and are happy to live here. You people who want to slag it off don't live here, you don't have to come here (oh but you do for our great shopping) so just get a life. :D
Most people are jealous of Milton Keynes, resorting to abusing a place where people live, You'd think they had better things to do? A main focus when "slaggin off" MK is that we lack history, seeing as we are a NEW town I believe the enigma at bletchley park, the birth of the phrase "cock and bull story" and the ROMAN, yes roman, villa's at Bancroft are a start for history.
MK can also boast many lakes, woodland areas, parks and an extensive redway system. Pubs and Clubs are also in abundance, with many on canal side or overlooking pleasant views. There are things to do for everyone, for example, an indoor ski slope, two multiplex cinemas (one being the first in Europe) a theatre, many leisure centres, the national hockey stadium, the national badminton centre, stadium:MK, the bowl, an indoor ice rink, (with a hockey team that has won the English Premier Ice Hockey League 5 seasons running) a theme park for children, a wakeboarding centre as well as a vast selection of restaurants set in amazing scenery and much more.
Basically, the people who live here love it and are happy to live here. You people who want to slag it off don't live here, you don't have to come here (oh but you do for our great shopping) so just get a life. :D
Example:
ignorant outsider: "My brain cannot cope with the simple fact that up and left is the same as left and up!"
Person from MK: It's just a grid system
ignorant outsider: "Well, Milton Keynes has... no... soul... yes, soul.
Person from MK: Jealous much?
ignorant outsider: "My brain cannot cope with the simple fact that up and left is the same as left and up!"
Person from MK: It's just a grid system
ignorant outsider: "Well, Milton Keynes has... no... soul... yes, soul.
Person from MK: Jealous much?
Milton Keynes by Sam JB January 12, 2008
Milton keynes
A place located between London and Birmingham Which has postcode gangs but only gang on job are m4 & 614 otherwise b3 are wet and reece checkz gets tormented by yr7s and nerds.
Milton keynes by L.krayz March 19, 2019