John Maynard Keynes


DEFINITION of 'John Maynard Keynes'

An author and economist who is well-known for his stance that national governments should attempt to smooth out the effects of expansion and contraction in the business cycle by using fiscal and monetary policy. Keynes is regarded as one of the founding fathers of modern day macroeconomic theory, and his views on economic theory have developed into a subset of economic theory called "Keynesian economics".

BREAKING DOWN 'John Maynard Keynes'

Keynes was one of the most groundbreaking economists of his day. He created many of the new ideas that went on to become accepted post World War II. Many national governments began to follow certain macroeconomic statistics more closely, including interest rates and employment because of Keynes academic efforts.

  1. Monetary Policy

    Monetary policy is the actions of a central bank, currency board ...
  2. Keynesian Economics

    An economic theory of total spending in the economy and its effects ...
  3. Animal Spirits

    A term used by John Maynard Keynes used in one of his economics ...
  4. Multiplier

    In Keynesian economic theory, a factor that quantifies the change ...
  5. Macroeconomics

    The field of economics that studies the behavior of the aggregate ...
  6. Neoclassical Economics

    An approach to economics that relates supply and demand to an ...
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  1. How can a government balance the stimulating effects of increased spending with the ...

    In Keynesian macroeconomic theory, fiscal policy stimulus is most useful after liquidity constraints render monetary policy ... Read Full Answer >>
  2. How did John Maynard Keynes influence business cycle theory?

    John Maynard Keynes created the theoretical arguments for a new type of economic strategy: government intervention used to ... Read Full Answer >>
  3. Are economic recessions inevitable?

    The popular sentiment of financial analysts and many economists is that recessions are the inevitable result of the business ... Read Full Answer >>
  4. Why is Keynesian economics sometimes called depression economics?

    Keynesian economics is sometimes referred to as depression economics since author and economist John Maynard Keynes' most ... Read Full Answer >>
  5. What is the difference between Keynesian and Neo-Keynesian economics?

    Classical economic theory presumed that if demand for a commodity or service was raised, then prices would rise correspondingly ... Read Full Answer >>
  6. What is the Keynesian multiplier?

    The Keynesian multiplier was introduced by Richard Kahn in the 1930s. It showed that any government spending brought about ... Read Full Answer >>

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