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.

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RELATED FAQS
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    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 >>
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  4. Why is Keynesian economics sometimes called depression economics?

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