[{"data":1,"prerenderedAt":68},["ShallowReactive",2],{"term:keynesian-economics":3},{"term":4,"related":47},{"id":5,"title":6,"body":7,"category":27,"description":28,"extension":29,"faq":30,"meta":31,"navigation":32,"path":33,"related":34,"seo":40,"stem":41,"takeaways":42,"__hash__":46},"terms\u002Fterms\u002Fkeynesian-economics.md","Keynesian Economics",{"type":8,"value":9,"toc":22},"minimark",[10,15,19],[11,12,14],"h2",{"id":13},"understanding-keynesian-economics","Understanding Keynesian Economics",[16,17,18],"p",{},"Based on John Maynard Keynes's 1936 General Theory, Keynesian economics holds that economies can stay in recession with high unemployment because demand is too low, and that government spending and monetary policy can help.",[16,20,21],{},"Modern New Keynesian models combine this with rational expectations and price stickiness, and they underpin most central bank models today.",{"title":23,"searchDepth":24,"depth":24,"links":25},"",2,[26],{"id":13,"depth":24,"text":14},"economy","The school of thought that total demand drives output and employment in the short run, and that policy can stabilize it.","md",[],{},true,"\u002Fterms\u002Fkeynesian-economics",[35,36,37,38,39],"aggregate-demand","fiscal-multiplier","animal-spirits","monetarism","sticky-prices",{"title":6,"description":28},"terms\u002Fkeynesian-economics",[43,44,45],"Short-run output is driven by aggregate demand.","Markets may not quickly restore full employment.","Fiscal and monetary policy can stabilize the economy.","uTsXuAttwB-9eVjAsTojCb9KxqXl50Hd260o--Eulaw",[48,52,56,60,64],{"title":49,"description":50,"path":51},"Aggregate Demand","Total spending on an economy's goods and services at each overall price level.","\u002Fterms\u002Faggregate-demand",{"title":53,"description":54,"path":55},"Animal Spirits","Keynes's term for the emotions and confidence that drive investment decisions.","\u002Fterms\u002Fanimal-spirits",{"title":57,"description":58,"path":59},"Fiscal Multiplier","How much total output changes for each dollar of government spending or tax cuts.","\u002Fterms\u002Ffiscal-multiplier",{"title":61,"description":62,"path":63},"Monetarism","The school of thought that the money supply is the main driver of inflation and nominal spending.","\u002Fterms\u002Fmonetarism",{"title":65,"description":66,"path":67},"Sticky Prices","Prices and wages that adjust slowly to changes in demand.","\u002Fterms\u002Fsticky-prices",1793374005318]