Keynesian Economics

Macroeconomics is a field of economics, including the entire economy or the economy as a whole. Macroeconomics includes economic factors such as gross domestic product and income, unemployment rate, international balance of payments and inflation. It is different from micro economics. Microeconomics is research on composition of output, such as demand and supply of individual goods and services, trading methods on the market, patterns of relative prices. Based on macroeconomics, understand the composition of domestic output or national income and the related concept of gross national product (GNP).

New Keynesian economics is often confused with "New Keynesian" economics (the latter is trying to provide the foundation of microeconomics to Keynesian views, especially given the stagnation of the 1970s). The new Keynesian Economics is actually formalization and coordination of Keynes' work by many other economists (most prominent John Hicks, Franco Modigliani, Paul Samuelson). While the majority of conceptual value is captured in previous Keynesian views, the substantial value of some new Keynesian ideas deserves to be repeated.

There are many economic schools that trace the heritage of Keynes, especially New Keynes 'economics, New Keynes' economics, Post - Keynesian economics. Keynesian biographer Robert Skydersky wrote that the school after Keynes is still closest to the spirit of Keynes' work, according to his monetary theory, in terms of rejecting neutrality. Today Keynes is consolidating, clarifying and promoting its role, so these ideas are mentioned under the academic headline "Keynesian Economics", regardless of its origin.

In macroeconomics they appear in the literature in a general order of classical economics, Keynesian economics, neoclassical synthesis theory, Post Keynesian economics, monetaryism, neoclassical economics, and supply-side economics . Alternative developments include ecological economics, constitutional economics, institutional economics, evolutionary economics, dependency theory, structural economics, world system theory, economic physics, feminist economics, and biophysical economics .

Keynesian economics is the economic theory of total economic expenditure and its impact on output and inflation. Keynesian economics was developed by the British economist John Maynard Keynes in the 1930's to understand the Great Depression. Keynes advocated increasing government spending and tax cuts to stimulate demand and to draw out the global economy from the economic downturn. Later, Keynesian economics was used to refer to the concept of achieving optimal economic performance and preventing the economic recession through the government's positive stability and economic intervention policies affecting aggregate demand. Keynesian economics is regarded as a "demand side" theory focusing on economic changes in the short term.