Macroeconomics - School Of Thought

Keynesian EconomicsKeynesian school of Macroeconomic thought appeals to me the most therefrom , it is necessary to outline its main ideas related to monetary and monetary policy . It is important to know that this theory is based on ideas of famous British economist John Keynes and it is rooted in the 20th century . Keynesian economic system cl channelises that mixed economy is the best type of managing fiscal and monetary policies , where special charge is paid to private sector and state . Keynesians doesn t conceive of that two state and private sector should operate on their get and , therefore their policy differs significantly from laissez-faire economy . such(prenominal) idea is the most appealing to me , because I think that each sector should be under thorough control (Blinder 2003The next moment to mention is that Keynesians believe macro-level trends are able to overlook over the micro-level of individual behavior . In contrast to Greco-Roman theory , Keynesians promote an idea that aggregate need for unspoilt is of great importance in economy and is its main driving force force . Speaking about fiscal and monetary policies , Keynesians aim at raising saving in to lower the demand for labor and products .

For showcase , they stated that there were many shipway for the authorities to ensure effective management of republical economyInstead of nonrecreational attention to unbalanced budgets , Keynesian theory suggests countercyclical fiscal policies , which acted against the heave of the business cycle : deficit spending when a nation s economy suffers from recession or when recovery is long-delayed and unemployment is persistently high gear (Blinder 2003 ) Therefore , the government should solve short-term problems . Also Keynesians think that fiscal stimulus or deficit spending whitethorn actuate production . Rather interesting idea is that government should be complementary . And fiscal expansion is possible solely in case of slack in labor marketHowever , Keynesian theory is criticized because of unbalanced view of monetary policy . For example , it is suggested that their approach to economy is rather collectivist which requires centralized plan and in such a way , it may manoeuvre to concerned with considerations instead of executing (Blinder 2003ReferencesBlinder , Alan (2003 . Keynesian Economics . Retrieved February 15 , 2007 from HYPERLINK http /www .econlib .org / program library /Enc /KeynesianEconomics .html http /www .econlib .org /library /Enc /KeynesianEconomics .htmlPAGEPAGE 2 ...If you want to get a full essay, rig it on our website: Ordercustompaper.com

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