Keynesian School: Difference between revisions

|title=[[File:Keynes.png]] Keynesian School

|image=Keynesianism-Pog.png

[[File:Ormarxf.png]] [[File:ML.png]] Communism (pejoratively, by [[File:Misestard.png]] [[Austrian School]])<br>

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Spending money<br>

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The '''Keynesian School''' is an economically centrist ideology, whose general economic theory was pretty popular back in the day and still is in most of the western countries and [[File:Cball-Japan.png]] Japan. He believes that the state should [[File:Regulationism.png]] [[Regulationism|intervene]] in the economy to level out the economic cycle so businesses can make long-term investments and allow for long-run growth. He plans to do this by lowering taxes, lowering interest rates, and increasing spending when the economy busts, but also by cutting spending, raising interest rates, and raising taxes during economic booms.

==History==

Keynesian economics was developed by the British economist John Maynard Keynes during the 1930s in an attempt to understand the Great Depression.

==Variants==

===[[File:NuKeynesPix.png]] Neo-Keynesian Economics===

The '''Neo-Keynesian Economic Theory''' is an economically centrist economic system, whose general economic theory is derived from the Neo-Classical economic thought in a mix with Keynesian economics.

 

* Giving up on the assumptions of absolute or even limited rationality of agents.

* Considering the problem of scarcity in the economy as secondary; and placing the problems of production, reproduction, growth, and circulation at the center of the analysis.

* Inflation is analyzed from a cost-push perspective. Money is endogenous, wages in monetary terms are determined by oligopolies and unions, and the stock of capital is homogeneous.

 

Like the Neo-Keynesian economic theory, the New Keynesian economic theory is Keynesian in the short run but neoclassical in the long run.

 

* [https://en.wikipedia.org/wiki/Menu_cost Menu costs]: The restaurants can print out new menus in response to their price changes, hence the name. However, menu cost is actually the cost of firms adjusting their nominal prices. The burden causes businesses to change prices slowly rather than continuously. The macroeconomic effect of changing a single firm's price on the demand of all products is called the "aggregate-demand externality."

* [https://en.wikipedia.org/wiki/Calvo_(staggered)_contracts The staggering of prices]: According to New Keynesians, enterprises don't set prices at the exact same time. Each one cares about its price relative to the ones charged by other firms. As a result, the prices are sluggish because no firms want to be the first to increase its price significantly.

 

===Stylistic Notes===

 

*He likes to break other people's windows.

 

== How to Draw==

{{COA|Keynes_COA.svg}}

 

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==Relationships==

=== Friends ===

*[[File:Soclib.png]] [[Social Liberalism]] - He's a good student who tends to agree with me on civil liberties. Just would like to see him go a bit further when it comes to economic interventionism.

*[[File:Patcon.png]] [[Paternalistic Conservatism]] - You listened to my arguments and not [[File:Fiscon.png]] [[Fiscal Conservatism|his]], smart move.

 

===Frenemies===

*[[File:Hayek.png]] [[Hayekism]] - ''"In the long term"'' we'll all be dead.

*[[File:NuKeynesPix.png]] [[Keynesian School#Neo-Keynesian Economic Theory|Neo Keynesian Economics]] - You are my son and I love you but quite hanging out with those [[File:Nclib4.png]] [[Classical Liberalism|neoclassicals]]!

 

=== Enemies===

*[[File:Commie.png]] [[Communism (Disambiguation)|Communism]] - I am not a communist. On the contrary, my methods are the only way to stop communists!

*[[File:Libertarian.png]] [[Libertarianism]] - This simpleton doesn't like it when the machine goes BRRRR. And for the last time, I'm not a goddamn socialist just because I like government spending. Please understand already that socialism is not about the government doing things.

 

==Further Information==

===Literature===

*[https://www.files.ethz.ch/isn/125515/1366_KeynesTheoryofEmployment.pdf The General Theory of Employment, Interest and Money] by John Maynard Keynes

*[http://static.stevereads.com/papers_to_read/krugman--the_return_of_depression_economics.pdf The Return of Depression Economics and the Crisis of 2008] by Paul Krugman

 

=== Wikipedia===

*[https://en.wikipedia.org/wiki/Keynesian_economics Keynesian Economics]

*[https://en.wikipedia.org/wiki/Neoclassical_synthesis Neo-Keynesianism]

 

====People====

*[[File:Keynes.png]] [[w:John_Maynard_Keynes|John Maynard Keynes]]

*[[File:Postkeynes.png]] [[w:Hyman_Minsky|Hyman Minsky]]

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[[Category:Economic Systems]]

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