Keynesian Economics
An economic theory stating that active government intervention in the marketplace and monetary policy is the best method of ensuring economic growth and stability. Investopedia Says:
A supporter of Keynesian economics believes it is the government's job to smooth out the bumps in business cycles. Intervention would come in the form of government spending and tax breaks in order to stimulate the economy, and government spending cuts and tax hikes in good times, in order to curb inflation. Related Terms:
Accelerator Theory
Disequilibrium
Dismal Science
Fiscal Deficit
Fiscal Policy
Free Enterprise
ISLM Model
Macroeconomics
Neoclassical Economics
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