Definition

1. Adjective:

   • Of or relating to John Maynard Keynes or his economic theories: Describes ideas, policies, or models that are based on the work of the 20th-century British economist John Maynard Keynes.
   • Characteristic of Keynesian economics: Pertaining to the central belief that aggregate demand (total spending in the economy) is the primary driving force in the short run, especially during recessions, and that government intervention can stabilize the economy.

2. Noun:

   • A follower of the economic theories of John Maynard Keynes: An economist, policymaker, or individual who supports and advocates for the principles of Keynesian economics.

Examples

• Adjective:
  • The government implemented a Keynesian policy of increased public spending to combat the recession.
  • His analysis of the fiscal stimulus was purely Keynesian.
• Noun:
  • As a staunch Keynesian, she argued for deficit spending during the economic downturn.
  • The debate featured a Keynesian and a monetarist presenting opposing views.

Advanced Usage

• "Keynesian revolution": Refers to the major shift in economic thought during the mid-20th century, where Keynes's ideas about aggregate demand and government management of the business cycle became widely influential.
  • The Keynesian revolution fundamentally changed how governments responded to economic crises.
• "New Keynesian economics": A school of thought that developed in the late 20th century, incorporating microeconomic foundations (like price stickiness) into traditional Keynesian macroeconomic models.
  • New Keynesian economics provides modern justifications for short-term economic stabilization policies.

Variants and Related Words

• Keynesianism (n): The body of economic theory and policy prescriptions associated with John Maynard Keynes.
  • The rise of Keynesianism dominated post-war economic policy in many Western nations.

Synonyms

• Demand-side (adj): Focusing on stimulating aggregate demand, often used interchangeably in a policy context (e.g., demand-side economics).
• Interventionist (adj): Supporting government intervention in the economy, though this term is broader than specifically Keynesian.

Related Phrases

• "Keynesian cross": A basic graphical model used in macroeconomics to illustrate the determination of equilibrium national income.
  • The instructor used the Keynesian cross to explain the concept of equilibrium output.
• "Keynesian multiplier": The concept that an initial change in spending (e.g., government investment) leads to a larger final change in national income.
  • The success of the infrastructure project depended on a strong Keynesian multiplier effect.

Adjective

1. of or relating to John Maynard Keynes or to his economic theories

Noun

1. a follower of the economic theories of John Maynard Keynes