Used by over 30 million students worldwide Create an account All Macroeconomic Theories Topics Aggregate Supply and Demand Business Cycle Economic Growth Fiscal Policy (Economics) Keynesian Economics Microeconomic Theories Multiplier (Economics) Phillips Curve Supply-Side Economics Start...
InKeynesian economics, aggregate demand or spending is what drives the performance and growth of the economy.Aggregate demandis made up of consumer spending, business investment spending, net government spending, and net exports. Variable Private Sector Behavior According to Keynesian economists, the pri...
Keynesian economicsteaches that governments can use fiscal and monetary policy to prevent contractions in demand from creating too much pain and shrinking of the economy, but these policies can also create distortions that actually prolong the pain felt by businesses and consumers. They prevent the pr...
“Markets can remain irrational longer than you can remain solvent,”(John Maynard Keynes, 1883-1946 – a British economist whose ideas – Keynesian economics -had a major impact on modern economic and political theory and on many governments’ fiscal policies) “To investors, job creation is a...
It depends on whether the reader is subscribed to a more Classical or Keynesian view of economics. More importantly, is whether the policy does what it is intended to do and whether the benefits of the policy outweigh the costs associated with a loss of efficiency. What is a deadweight loss...
sector. Also incorporating the policies of privatization, deregulation,globalization, andfree trade, it is commonly—though perhaps incorrectly—associated withlaissez-faireor “hands-off” economics. Neoliberalism is considered a 180-degree reversal of the Keynesianphase of capitalismprevalent from 1945 to...
‘Growth in a Time of Debt’ is the name of the working paper that Carmen M. Reinhart together with Kenneth S. Rogoff published in May of 2010. Back in 2010 it is important to notice that the governments of the USA and Europe, were pursuing Keynesian programs that had been launched afte...
Living in a time of immense economic uncertainty has sparked my curiosity to explain the rationale of consumers, firms and governments. The severity of vast global problems, from financial crisis to poverty, has also attracted me to Economics: a subject
(eds): OUP Handbook on Computational Economics and Finance. Oxford University Press, Oxford, in press.Westerhoff F., Franke R. (2012), "Agent-Based Models for Economic Policy Design: Two Illus- trative Examples", BERG Working Paper, 88, University of Bamberg....
The supply-side theory has three pillars which are tax policy, regulatory policy, and monetary policy. However, the overall concept is that production, or the supply of goods and services, is most important in determining economic growth. The supply-side theory contrasts withKeynesian theory, whic...