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  • He contributed to the development of key ideas in the Keynesian economics of his generation and advocated government intervention in particular to stabilize output and avoid recessions.
  • In the Keynesian view, aggregate demand does not necessarily equal the productive capacity of the economy.
  • One of the most influential economists of the 20th century, he produced writings that are the basis for the school of thought known as Keynesian economics, and its various offshoots.
  • Post-Keynesian economists are united in maintaining that Keynes' theory is seriously misrepresented by the two other principal Keynesian schools: neo-Keynesian economics, which was orthodox in the 1950s and 60s, and new Keynesian economics, which together with various strands of neoclassical economics has been dominant in mainstream macroeconomics since the 1980s.
  • New Keynesian economics is a school of macroeconomics that strives to provide microeconomic foundations for Keynesian economics.
  • Fiscal policy is based on the theories of the British economist John Maynard Keynes, whose Keynesian economics theorised that government changes in the levels of taxation and government spending influence aggregate demand and the level of economic activity.
  • The Nordli cabinet under Minister of Finance Per Kleppe continued a Keynesian fiscal policy with deficit spending where Norway loaned abroad against future oil income.
  • The most familiar of his many contributions in the field of economics were his statement of consumer demand theory in microeconomics, and the IS–LM model (1937), which summarised a Keynesian view of macroeconomics.
  • Political scientist Sheri Berman also credits the Swedish Social Democratic success during the interwar years to the party's adoption of Keynesianism during the Great Depression (which she contrasts with the Social Democratic Party of Germany's reluctance towards Keynesian policies during the same time and the German Social Democrats' subsequent decline).
  • Samuelson wrote a weekly column for Newsweek magazine along with Chicago School economist Milton Friedman, where they represented opposing sides: Samuelson, as a self described "Cafeteria Keynesian", Together with Henry Wallich, their 1967 columns earned the magazine a Gerald Loeb Special Award in 1968.
  • The mainstream view is that market economies are generally believed to be closer to efficient than other known alternatives and that government involvement is necessary at the macroeconomic level (via fiscal policy and monetary policy) to counteract the economic cycle – following Keynesian economics.
  • Kuznets is credited with revolutionising econometrics, and this work is credited with fueling the so-called Keynesian revolution.
  • The Third Way seeks a compromise between a less interventionist economic system as supported by neoliberals and Keynesian Social democratic spending policy supported by social democrats and progressives.
  • He argued strongly that Keynesian economics offered a solution to the financial crisis of 2007–2008 whereas monetarist policies would deepen the recession.
  • The politicians favouring New Right ideology were referred to as dries, while those advocating continuation of the economic policies of the post-war consensus, typically Keynesian economics, or were more socially liberal, were called wets (the term wets was similarly used in Britain to refer to those Conservatives who opposed Thatcherite economic policies, but dries in this context was much rarer in British usage).
  • The new Michael Joseph Savage–Peter Fraser Labour Government, which ushered in a raft of social and economic reforms including the establishment of a Keynesian welfare state, nationalization of key economic resources, and the expansion of public works and state-housing projects.
  • Keynesian economics holds that the multiplier is above one, meaning government spending effectively boosts output.
  • The first are the demand-driven theories, from Keynesian and institutional economists who argue that the depression was caused by a widespread loss of confidence that led to drastically lower investment and persistent underconsumption.
  • According to Keynesian economics, weak demand results in unplanned accumulation of inventories, leading to diminished production and income, and increased unemployment.
  • One minus the MPC equals the marginal propensity to save (in a two sector closed economy), which is crucial to Keynesian economics and a key variable in determining the value of the multiplier.


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