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designed for the short term
Keynes advocated that Fiscal Policy was a more powerful tool. this is mainly due to the fact that at the time he lived there were very few central banks that were truly independent from the government. The central bank had to be independent for monetary policy to function properly.
Keynes did not address monetary policy and this is one of the main distinctions between him and Friedman.
What else can I help you with?
What was keynes solution on the depression?
John Maynard Keynes proposed that during economic downturns, governments should increase public spending and investment to stimulate demand and pull the economy out of depression. He argued for counter-cyclical fiscal policies, where the government would run deficits to finance this spending, thereby creating jobs and boosting consumer confidence. Keynes believed that by increasing aggregate demand, economies could recover more quickly from recessions. His ideas laid the foundation for modern macroeconomic policy and the welfare state.
What is the definition of demand side policy?
Policies designed to affect aggregate demand: fiscal policy and monetary policy.
What explanation did J.M Keynes provide about the cause of the Great Depression?
J.M. Keynes attributed the Great Depression primarily to a collapse in aggregate demand, which he believed was exacerbated by a lack of consumer and business confidence. He argued that this decline in demand led to reduced production, rising unemployment, and falling incomes, creating a vicious cycle. Keynes also emphasized the role of inadequate monetary policy and the failure of the banking system to provide necessary liquidity. His solution advocated for government intervention to stimulate demand through fiscal policies, such as increased public spending.
Do you think the standard imf policy prescriptions of tight monetary policy and reduced government spending are always appropriate for developing nations experiencing a currency crisis?
Do you think the standard IMF policy prescriptions of tight monetary policy and reduced government spending are always appropriate for developing nations experiencing a currency crisis
The policy that aimed to prevent the spread of communism by bloking soviet influence?
Containment Policy
Controlling money to influence the economy is called?
Fiscal policy is the controlling of money to have an overall influence of the economy. Fiscal policy is based on ideas from economist John Maynard Keynes.
What did john maynard keynes think would resolve the great depression?
increased public expenditures through government programs (fiscal policy) and money supply (monetary policy)
British economist who advocated interventionist government policy?
John Maynard Keynes
Most theories on modern fiscal policy are based on the works of which economist?
John Maynard Keynes
What are 2 examples of macroeconomists?
Two examples of macroeconomists are John Maynard Keynes, known for his theories on government intervention in the economy to manage economic cycles, and Milton Friedman, known for his work on monetarism and advocating for a stable monetary policy.
What has the author Umberto De Girolamo written?
Umberto De Girolamo has written: 'Occupazione e moneta nell'analisi di John Maynard Keynes' -- subject(s): Employment (Economic theory), Keynesian economics, Monetary policy
What famed English economist laid the basis for most theories on modern fiscal policy?
John Maynard Keynes
Which famed English economist laid the basis for most theories on modern fiscal policy?
John Maynard Keynes
The economic policy of John Maynard Keynes called for government assistance so there could be full employment?
true
Which policy has more direct influence on individuals and businesses?
Monetary Policy.
Which policy has a more direct influence on individuals and businesses?
Monetary Policy.
Which policy would john maynard keynes consider pump priming?
Funding public-works projects to put unemployed people to work.
