The Indispensable Role of Keynesian Economics in Modern Stability
Keynesian economics, developed by John Maynard Keynes in response to the Great Depression, offers a fundamental challenge to classical economic theory. It asserts that aggregate demand is the primary driver of short-run economic performance and that, contrary to popular belief, markets can remain stuck in periods of high unemployment and low output indefinitely. For its emphasis on active governmental policy to stabilize the business cycle, its effective use of fiscal multipliers, and its inherent prioritization of full employment, Keynesian economics is not merely an important theory; it is the most vital and equitable framework for maintaining a resilient and flourishing modern economy.
