Keynesians believe that as far as demand management policy, velocity and quantity of money remains stable. A change in the money supply will only affect the interest rate, which does not affect aggregate demand enough to justify using monetary policy. -Megan
Keynesians believe that government control in the economy is necessary to its general health. Keynes' argument for government influence is that short-run instability is caused by a lack of spending. Government's job is encouraging consumption in the marketplace.
it was enacted then because the governments needed a tighter reign on the economic situation. they needed to bolster it in both cases though for different reasons. so the best way to make people pay is to get the big boys/government involved
Keynesian economic theory is a much more active approach to economics, where government institutions make decisions that keep the economy in check. Some could argue that Keynes' theories rescued the United States from utter demise during the Great Depression. Certainly, Keynesian institutions set up in the United States since then, such as the SEC and the Federal Reserve, have proven that disciplining the market is necessary to keep it thriving. -Ian Carroll
So keynesian economics are based on 20th century British economics John Maynard Keynes' ideas. This one is about government involvement.The government has to come in to fix things, unlike the classical which fixes itself.
Keynes believed that in the short run everyone is dead, so a bunch of good short runs with government help will keep the economy in good health. Also on the aggregate model when prices drop into the inefficient range they become "sticky" and are inflexible at that point.
I believe keynesian policies are important to sustaining a vibrant economy, to an extent. Of course, too much or too little government regulations could result in disaster. Determining how much government involvement is necessary is tricky, as it depends on the economic circumstances, political factors, and the context of the era. That's why economic policy has swung between Keynesian and Classical- but government involvement has always existed, and should exist, to some degree.
Keynesian economics contrasts classical economic theory. Where as classical favors natural ebb and flow of economics, keynesian favors active government influence. Keynesian involves government acting as more than a referee.
It makes sense that Obama would spend multitudes of dollars into stimulating the economy, but is the current deficit that the US has acceptable even for fiscal policy standards?
Keynesian economists don't believe that the economy has the ability to naturally come back to an equilibrium. The government has to get involved in order to bring the economy down from an overextended state or bring it up from an ineffient state. I am more of a Classical thinker in that I believe that if the economy is disturbed and left alone for a while, it will fix itself.
Keynesian economics has to do with the government getting involved with economic issues such as an over-extended economy. Any Fiscal Policy is Keynesian therefore Keynesian economics is a useful tool in combatting recession.
What Obama is doing is like goin to the dentist. It's a necessary evil to attempt to fix the economy that bush screwed up. Governmental involvement is a necessary evil for stabilization in the economy that has already been effected by such government
Keynesians believe that the government needs to play a large role in the economy, as it cannot bring itself back to equilibrium. Keynesians think very short term, constantly pushing AD to boost GDP. We're pretty Keynesian right now.
Keynesian economics advocates a mixed economy and served as the economic model during the latter part of the Great Depression, World War II, and the post-war economic expansion (1945–1973.
Keynesian Economics deals with government intervening in economics. They believe that if there is a problem within the economic system then they have to step in and help with either a bill, "effect", etc.
Keynesian economists believes that the governement needs to be involved in everything to do with the economy. This idea is flawed because the government grows too big and controls everything. I, personally, believe that Classical school of thought is much better due to the lesser involvement of the government.
Keynsian economics encourages a high government involvement in economic dealings. Bailouts such as the Fannie Mae and Freddie Mac incidents are two obvious examples.
Keynesians believe that as far as demand management policy, velocity and quantity of money remains stable. A change in the money supply will only affect the interest rate, which does not affect aggregate demand enough to justify using monetary policy. -Megan
ReplyDeleteKeynesians believe that government control in the economy is necessary to its general health. Keynes' argument for government influence is that short-run instability is caused by a lack of spending. Government's job is encouraging consumption in the marketplace.
ReplyDeleteThis kind of economic thought was used during the Great Depression and WWII and post WWII time
ReplyDeleteit was enacted then because the governments needed a tighter reign on the economic situation. they needed to bolster it in both cases though for different reasons. so the best way to make people pay is to get the big boys/government involved
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteKeynesian economic theory is a much more active approach to economics, where government institutions make decisions that keep the economy in check. Some could argue that Keynes' theories rescued the United States from utter demise during the Great Depression. Certainly, Keynesian institutions set up in the United States since then, such as the SEC and the Federal Reserve, have proven that disciplining the market is necessary to keep it thriving. -Ian Carroll
ReplyDeleteSo keynesian economics are based on 20th century British economics John Maynard Keynes' ideas. This one is about government involvement.The government has to come in to fix things, unlike the classical which fixes itself.
ReplyDeleteKeynes believed that in the short run everyone is dead, so a bunch of good short runs with government help will keep the economy in good health. Also on the aggregate model when prices drop into the inefficient range they become "sticky" and are inflexible at that point.
ReplyDeleteI believe keynesian policies are important to sustaining a vibrant economy, to an extent. Of course, too much or too little government regulations could result in disaster. Determining how much government involvement is necessary is tricky, as it depends on the economic circumstances, political factors, and the context of the era. That's why economic policy has swung between Keynesian and Classical- but government involvement has always existed, and should exist, to some degree.
ReplyDeleteKeynesian economics contrasts classical economic theory. Where as classical favors natural ebb and flow of economics, keynesian favors active government influence. Keynesian involves government acting as more than a referee.
ReplyDeleteIt makes sense that Obama would spend multitudes of dollars into stimulating the economy, but is the current deficit that the US has acceptable even for fiscal policy standards?
ReplyDeleteKeynesian economists don't believe that the economy has the ability to naturally come back to an equilibrium. The government has to get involved in order to bring the economy down from an overextended state or bring it up from an ineffient state. I am more of a Classical thinker in that I believe that if the economy is disturbed and left alone for a while, it will fix itself.
ReplyDeleteKeynesian economics has to do with the government getting involved with economic issues such as an over-extended economy. Any Fiscal Policy is Keynesian therefore Keynesian economics is a useful tool in combatting recession.
ReplyDeleteWhat Obama is doing is like goin to the dentist. It's a necessary evil to attempt to fix the economy that bush screwed up. Governmental involvement is a necessary evil for stabilization in the economy that has already been effected by such government
ReplyDeleteKeynesians believe that the government needs to play a large role in the economy, as it cannot bring itself back to equilibrium. Keynesians think very short term, constantly pushing AD to boost GDP. We're pretty Keynesian right now.
ReplyDeleteKeynesian economics advocates a mixed economy and served as the economic model during the latter part of the Great Depression, World War II, and the post-war economic expansion (1945–1973.
ReplyDeleteKeynesian Economics deals with government intervening in economics. They believe that if there is a problem within the economic system then they have to step in and help with either a bill, "effect", etc.
ReplyDeleteKeynesian economists believes that the governement needs to be involved in everything to do with the economy. This idea is flawed because the government grows too big and controls everything. I, personally, believe that Classical school of thought is much better due to the lesser involvement of the government.
ReplyDeleteThe Yin to Classical's Yang. This view is centered around the government influencing market trends (counter-cyclical).
ReplyDeleteKeynesian economics is characterized by large amount of government involvement.
ReplyDeleteKeynsian economics encourages a high government involvement in economic dealings. Bailouts such as the Fannie Mae and Freddie Mac incidents are two obvious examples.
ReplyDelete