KEYNESIAN Meaning and
Definition
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Keynesian is an adjective that refers to the economic theories and principles developed by the economist John Maynard Keynes. Keynesian economics advocates for government intervention and policies to promote economic stability and address issues such as unemployment, inflation, and recessions.
Keynesian economics is based on the belief that fluctuations in aggregate demand, which represents the total spending on goods and services in an economy, can have significant effects on the performance of the overall economy. According to Keynesian theory, in times of economic downturns, such as recessions, governments should increase spending or reduce taxes to stimulate aggregate demand. Keynesians argue that this intervention can help increase consumer spending, business investment, and employment levels, thus promoting economic recovery.
Another central idea in Keynesian economics is the concept of the multiplier effect, which suggests that changes in government spending can have a greater impact on the economy than the initial amount spent. This multiplier effect occurs as increased government spending reinforces and stimulates additional spending and investment, thereby creating a positive feedback loop of economic growth.
Furthermore, Keynesians propose that active fiscal policy, such as adjusting government spending and taxation, is crucial in stabilizing the economy and preventing fluctuating business cycles. This approach stands in contrast to classical economic theories that emphasize a hands-off, laissez-faire approach to government intervention in the economy.
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Etymology of KEYNESIAN
The word "Keynesian" refers to the economic theories and ideas developed by the British economist John Maynard Keynes. The term "Keynesian" is derived from Keynes's last name, Keynes, and the suffix "-ian", which is commonly used to create adjectives denoting association or adherence to a particular person, place, or thing. Therefore, the word "Keynesian" means related to or associated with the ideas, principles, or theories of John Maynard Keynes.
Idioms with the word KEYNESIAN
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Keynesian
The idiom "Keynesian" refers to the economic theories and principles associated with British economist John Maynard Keynes. Keynesian economics is a macroeconomic theory that emphasizes the role of government intervention in managing and stabilizing an economy. It suggests that government spending and policies can help stimulate demand and promote economic growth, especially during recessions or periods of low activity, by increasing public investment and reducing unemployment. This approach stands in contrast to classical economic theories that emphasize the importance of free markets and minimal government intervention.
Similar spelling words for KEYNESIAN
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