Just how important is money? Few would deny that it plays a key role in the economy.ĭuring the Great Depression of the 1930s, existing economic theory was unable either to explain the causes of the severe worldwide economic collapse or to provide an adequate public policy solution to jump-start production and employment.īritish economist John Maynard Keynes spearheaded a revolution in economic thinking that overturned the then-prevailing idea that free markets would automatically provide full employment-that is, that everyone who wanted a job would have one as long as workers were flexible in their wage demands (see box). The central tenet of this school of thought is that government intervention can stabilize the economy Sarwat Jahan, Ahmed Saber Mahmud, and Chris Papageorgiou Finance & Development, September 2014, Vol.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |