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Keynesian |
Also found in: Financial, Wikipedia, Hutchinson | 0.04 sec. |
Keynesian [cane-zee-an] Adjective of the economic theories of J M Keynes, who argued that governments should fund public works to maintain full employment, accepting if necessary the consequence of inflation
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Over time, this view triumphed over the Keynesian notion that fiscal policy--taxing and spending--is government's best tool to manage the economy. The ECB invited Professor Michael Woodford from Columbia University, who made a strong case for the superiority of the New Keynesian models, in which money has no separate role. Unlike, say Lyndon Johnson's masterful handling of the Vietnam War, Jimmy Carter's deft use of Keynesian economics to provide low inflation and economic growth, Bill Clinton's Churchillian handling of Somalia and al Qaeda, Sudan, and Haiti. |
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