The Money Farm Team

Why Does Keynesian Economics Advocate Government Spending During A Recession?

The premise that the macroeconomy can be in disequilibrium (recession) for a long time is central to Keynesian economics. To help an economy recover from a slump, Keynesian economics supports more government expenditure (funded by government borrowing) to jumpstart it. Keynesian economics includes Individuals save more during a recession, but this deepens the economic crisis).

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