Would Keynesian policies be a more viable method to deal with the economic crisis?

INTRODUCTION The Keynesian School of economic thought, was developed in the 1930s by the British economist John Maynard Keynes to understand the Great Depression. The scale of Keynesian theory span across the Atlantic in the post war decades, after its adoption in war-time Britain for macroeconomic management. Comprised of various macroeconomic theories, such as how … Continue reading Would Keynesian policies be a more viable method to deal with the economic crisis?

Keynesian Cross – Theories of Short-Run Fluctuations

The Keynesian Cross is “[a] simple model of income determination, based on the ideas in Keynes’s General Theory, which shows how changes in spending can have a multiplied effect on aggregate income.” (Mankiw, 2010) Well, it might be a nice simple model with neatly placed lines, however, this only measures a closed economy and wrongly … Continue reading Keynesian Cross – Theories of Short-Run Fluctuations