Keynesianism is an approach to macroeconomics based on the work of John Keynes. Failures of co-ordination between markets, even if these are internally efficient, may generate recession and mass unemployment. For example, unemployed workers may be unable to find jobs because there is no demand for the goods they produce although these same workers would demand the goods if they were employed and earned wages. In this view, governments have a role to play by putting money into workers' pockets through public works, i.e. creating the demand and raising the level of production through the multiplier process. This view of the economy was widely accepted between the late 1940s and the 1960s, when it came under attack first by the monetarists and more recently by the new classical macroeconomists. Research Keynesianism
Abbreviations
Money
Research Keynesianism