KEYNESIAN THEORY OF GOVERNMENT INTERVENTION IN THE ECONOMY
https://doi.org/10.5281/zenodo.14550517
Keywords:
Keynesian economics, government intervention, aggregate demand, fiscal policy, monetary policy, public spending, multiplier effect, unemployment, economic stabilization, economic recession, inflationAbstract
The Keynesian theory, developed by British economist John Maynard Keynes, revolutionized economic thought in the 20th century by emphasizing the role of government intervention in managing economic fluctuations. In contrast to classical economic theories that advocated for minimal government involvement, Keynesian economics argues that active fiscal and monetary policies are essential for stabilizing economies, especially during periods of economic downturn. This paper explores the fundamental principles of Keynesian economics, the role of government intervention, and the theory’s implications for contemporary economic policy.
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