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John Maynard Keynes
According to the theory, government spending can be used to increase aggregate demand, thus increasing economic activity, reducing unemployment and deflation. For example, when the unemployment rate is very high, a government can use a dose of expansionary monetary policy. The Keynes theory says, that government should support borrowers and to give them low rates of interest. It means that each in a specific sector invested euro will directly and indirectly promoting other industries development. For example: One new work in the construction industry will create the demand for 3—4 jobs for construction services sectors.
Of course economic isn’t anything simple, there is a lot of things, which can influence economic and policy. So, the right answer how to make our life better doesn’t exist. Adjustment economic result is rarely a predictable. Economy is too difficult system, and to manage it you should have not just a good knowledge’s and a lot of experience, but also a seriously political volition.
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John Maynard Keynes was a British economist. Keynes was always confident he could find a solution to whatever problem he turned his attention to, and retained a lasting faith in the ability of government officials to do well. He refined earlier work on the causes of business cycles, and advocated the use of fiscal and monetary measures to mitigate the adverse effects of economic recessions and depressions. His contribution to the science of economics is important for every country, because on his ideas basis all modern macroeconomics. Keynes is widely considered to be one of the founders of modern macroeconomics, and the most influential economist of the 20th century. He was one of the first who tried to explain the mechanism of Great depression and economical crises. His ideas are the basis for the school of thought known as Keynesian economics.
