Keynesian
Stimulus-supporting economic philosophy
Keynesian refers to the economic theories of John Maynard Keynes, who argued that government spending and intervention can stabilize economies during downturns.
A Keynesian approach favors stimulus measures—public works, deficit spending—to boost demand when private markets falter: The administration pursued Keynesian policies to combat the recession.
The term often contrasts with free-market or supply-side economics.
Expenditures funded by debt
- government expenditureFunds disbursed by authorities
- fiscal stimulusGovernment spending to boost economy
- public worksGovernment-built community structures
- pump primingInitial spending spurring activity
budget deficit · discretionary spending · infrastructure investment · tax cuts · injection · New Deal · job creation · public investment
Prolonged economic decline
- depressionProlonged low state
- boomLoud deep sound
- bustFailure or sculpture
- economic cycleRecurring market rise and fall
business cycle · downturn · recovery · slump · contraction · expansion · Great Depression · trough
How spending compounds economically
- animal spiritsInstinctive economic confidence
- full employmentAll willing workers employed
Price paid for borrowing
- central bankNational currency management institution
- monetary policyCentral bank economic controls
- quantitative easingAsset purchases to boost economy
- money supplyTotal currency in circulation
deficit spending
Expenditures funded by debt
- government expenditureFunds disbursed by authorities
- fiscal stimulusGovernment spending to boost economy
- public worksGovernment-built community structures
pump priming · budget deficit · discretionary spending · infrastructure investment · tax cuts · injection · New Deal · job creation · public investment · government intervention
recession
Prolonged economic decline
- depressionProlonged low state
- boomLoud deep sound
- bustFailure or sculpture
economic cycle · business cycle · downturn · recovery · slump · contraction · expansion · Great Depression · trough · peak
multiplier effect
How spending compounds economically
- animal spiritsInstinctive economic confidence
- full employmentAll willing workers employed
interest rates
Price paid for borrowing
- central bankNational currency management institution
- monetary policyCentral bank economic controls
- quantitative easingAsset purchases to boost economy
- economicssupply and demand, inflation, GDP, GNP, gross domestic product
- economic historystock market crash, Industrial Revolution, trade routes, Great Depression, gold standard
- economic policymonetary policy, tax policy, fiscal discipline, fiscal stimulus, fiscal restraint
- Political Ideologistssocialist, communist, anarchist, Marxist, leftist
- macroeconomicsGDP, GNP, gross domestic product, gross national product, inflation rate
- business philosophiescapitalism, free market, lean, kaizen, agile
Keynesianlaissez-faire
Noninterference in commerce
free-market · Austrian · monetarist · libertarian · neoliberal
- Keynesian economicsSpending-driven macroeconomic theory