Thursday, June 2, 2011

John Maynard Keynes - Government's Roles in Economy Stability

John Maynard Keynes, 1883-1946, was a British Economist whose ideas have been central influence on modern macroeconomic. He theory about the government role in the macroeconomic is as a prime mover to jump start the economy during recession and depression. By increase government spending during the down time, the negative impact of recession to macroeconomic can be mitigated before the economy hit the ground. The manipulation of fiscal policy of government is the key point in his theory - Keynesian Economic. His new profound economy theory have become new adoption in modern economy since world war II.


Simply put it, in Keynesian economic, government should spend when the economy is up trending, and spend more when it is down to compensate the private spending. It is like a supplementary to the free market to keep it stay healthy & Intact. Yet, his ideal theory has come to a lot of controversy since often the government is a "lousy" driver in economy. The Supplementary has becoming more likely to a Main Course.



John Maynard Keynes.jpg

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