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Who invented Keynesian theory?

Published in Economics 2 mins read

John Maynard Keynes is widely recognized as the inventor of Keynesian theory.

Keynes was a British economist who revolutionized economic thought with his groundbreaking book The General Theory of Employment, Interest and Money, published in 1936. This book laid the foundation for Keynesian economics, a school of thought that emphasizes the role of government intervention in managing the economy, especially during periods of recession.

Key tenets of Keynesian theory include:

  • Government spending: Keynesian theory argues that governments should increase spending during economic downturns to stimulate demand and create jobs. This is often referred to as "fiscal policy."
  • Monetary policy: Keynesian theory also advocates for the use of monetary policy, such as lowering interest rates, to encourage borrowing and investment.
  • Demand-side economics: Keynesian theory focuses on the demand side of the economy, arguing that increased demand leads to increased production and employment.

Keynesian theory has had a significant impact on economic policy around the world. It has been used to justify government intervention in the economy during recessions and depressions, and it continues to be a major influence on economic policy today.

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