influenced by the economic theory of John M. Keynes (1883-1946); in particular, Keynes' book *The General Theory of Employment, Interest, and Money* (1936). The main point of Keynes' general theory (GT) was that market economies are not usually self-correcting, and occasionally require some sovereign intervention to prevent inflation or depression.
One of the policy prescriptions of the GT for curing recessions was to lower interest rates; another, more potent tool, was to deliberately run a fiscal deficit as a strategy for increasing aggregate demand. The GT was too late to have much of an impact on the Great Depression, but it did have a major impact on the economic policies of the Western Democracies from 1946 to the present.
During the period 1979 to 2001, Keynesianism was supposedly discredited, but national governments continued to use stimulus packages and monetary policy to resolve recessions. The policy has evolved, but remains the cornerstone of actually existing government behavior.
Attacks on Keynesianism: the most famous adversary of the GT was Friedrich von Hayek (1899-1992) of the London School of Economics, who insisted that an authentically free market would be self-correcting if it were only allowed to. Hayek's objections were ideological, but other economists such as John Muth argued that the GT expected people to make irrational, or unreasonable errors.
During the late 1970's, Keynesianism was eclipsed by the Rational Expectations Hypothesis; but REH failed to develop satisfactory policy proposals, while Neo-Keynesian economics evolved to address many of the original REH criticisms.
One of the policy prescriptions of the GT for curing recessions was to lower interest rates; another, more potent tool, was to deliberately run a fiscal deficit as a strategy for increasing aggregate demand. The GT was too late to have much of an impact on the Great Depression, but it did have a major impact on the economic policies of the Western Democracies from 1946 to the present.
During the period 1979 to 2001, Keynesianism was supposedly discredited, but national governments continued to use stimulus packages and monetary policy to resolve recessions. The policy has evolved, but remains the cornerstone of actually existing government behavior.
Attacks on Keynesianism: the most famous adversary of the GT was Friedrich von Hayek (1899-1992) of the London School of Economics, who insisted that an authentically free market would be self-correcting if it were only allowed to. Hayek's objections were ideological, but other economists such as John Muth argued that the GT expected people to make irrational, or unreasonable errors.
During the late 1970's, Keynesianism was eclipsed by the Rational Expectations Hypothesis; but REH failed to develop satisfactory policy proposals, while Neo-Keynesian economics evolved to address many of the original REH criticisms.
The treasury secretary wanted to respond to the inflationary spiral with a Keynesian strategy of tax increases, spending cuts, and interest rate hikes.
by Abu Yahya February 14, 2009
Get the Keynesian mug.A kevyntruck is a truck that is all show, but isn’t a show truck (or been dropped) it’s a truck that can go off-road and made to look like it but won’t ever do it. It’s a truck who’s tail gate hasn’t even been opened since the dealer put it on there lot and It’s driven around just to flex on others, they’ll park in the very front of the parking lot anywhere they go just so everyone can see them. They’ll post videos of them driving it around constantly on social media.
If you have hauled at least ONE trailer or used your truck bed in any manner that appropriate for a truck then your truck isn’t a kevyntruck. A kevyntruck isn’t a truck driven by retirees, it’s a truck that’s owned by people who don’t even need trucks, they live within city limits in a suburb and don’t work construction, landscaping, mechanics or a warehouse. A Kevyntruck is owned by people who work in an office, they’re HR and administrative positions, they work embroidering shirts and hats. They’re basically people who don’t like getting there hands dirty.
If you have hauled at least ONE trailer or used your truck bed in any manner that appropriate for a truck then your truck isn’t a kevyntruck. A kevyntruck isn’t a truck driven by retirees, it’s a truck that’s owned by people who don’t even need trucks, they live within city limits in a suburb and don’t work construction, landscaping, mechanics or a warehouse. A Kevyntruck is owned by people who work in an office, they’re HR and administrative positions, they work embroidering shirts and hats. They’re basically people who don’t like getting there hands dirty.
Kevtruck owner: Look at me! Everyone! Look at me and my kevyntruck!
Others: Ok. what was your interest rate on the loan?
KevtruckOwner: 13%
Others: Ok. what was your interest rate on the loan?
KevtruckOwner: 13%
by Kevblendz December 10, 2020
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Kedynata is so awesome!!
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Get the Milton Keynes college mug.by Keyna November 5, 2003
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Get the Keayn mug.Keynesian: GDP = C + G + I +Ne. More government spending (G) increases GDP. The government needs to stimulate to increase prosperity.
Sane Person: But doesn't that substitute the political process for the market process in determining how society's scarce resources are allocated? If central economic planning lead to prosperity wouldn't North Korea be the most prosperous place on Earth?
Keynesian: Paul Krugman didn't tell me that, so it can't be true! Racist!
Sane Person: But doesn't that substitute the political process for the market process in determining how society's scarce resources are allocated? If central economic planning lead to prosperity wouldn't North Korea be the most prosperous place on Earth?
Keynesian: Paul Krugman didn't tell me that, so it can't be true! Racist!
by hayekftw June 28, 2012
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