Definition of Keynesian economics

Relating to the ideas of John Maynard Keynes, who believed that, in a recession, the economy can be made to grow and unemployment reduced by increasing government spending and making reductions in interest rates. [1]

Theory based on the ideas of economist John Maynard Keynes that optimum economic performance could be achieved by influencing aggregate demand through government fiscal (public spending and taxation) policy, not through the free market philosophy characterised by the classical and neo-classical schools.

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A fruitless clash of economic opposites

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