Keynesian economists often argue that private sector decisions sometimes lead to inefficient macroeconomic outcomes which require active policy responses by the public sector, in particular, monetary policy actions by the central bank and fiscal policy actions by the government, in order to stabilize output over the business cycle.[2] Keynesian economics advocates a mixed economy – predominantly private sector, but with a role for government intervention during recessions – and in the developed nations served as the standard economic model during the later part of the Great Depression, World War II, and the post-war economic expansion (1945–1973), though it lost some influence following the oil shock and resulting stagflation of the 1970s.[3] The advent of the global financial crisis in 2008 has caused a resurgence in Keynesian thought.
Posted on: Wed, 12 Jun 2013 01:14:37 +0000
Trending Topics
Recently Viewed Topics
© 2015