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Keynesianism is one of the best known economic theories, its main feature is that it supports interventionism as the best way out of a crisis. It owes its name to the British economist John Maynard Keynes, who focused his career on studying economic aggregates and economic cycles.
The main elements of this current of thought are contained in the work of JM Keynes The general theory of occupation, interest and money, published in 1936. One of its main contributions is the analysis of effective demand and its incidence in The variations of the level of production and employment, contrary to what had hitherto been maintained by the official doctrine and the so-called market law or Say law, according to which it is the supply that creates its own demand. In order to regulate fluctuations in demand or aggregate demand and, ultimately, economic activity, monetary policy has to be complemented by other economic policy instruments, such as fiscal policy, due to the limitations of the former. J. M. Keynes shows that the economic system can be in equilibrium in a situation of underemployment and remain in it indefinitely if the State does not intervene.
This economic discipline produced a veritable “Keynesian revolution,” which parted classical economic thinking based on liberalism and laissez faire. Keynesianism promised a solution to the greatest enemy of capitalism, economic cycles. Keynes believed that the main cause of crises is the low demand, derived from the low expectations of consumers. He proposed interventionism as a mechanism to stimulate demand and regulate the economy in times of depression. Keynes studied the aggregate problems of the economy, such as unemployment, investment, consumption, production and saving in a country. His arguments built the basis of Macroeconomics.
Keynesianism is based on state interventionism, defending economic policy as the best tool to emerge from an economic crisis. Its economic policy is to increase public spending to stimulate aggregate demand and thus increase production, investment and employment.
The Keynesian Economy aims to provide instruments to national and international institutions to manage times of crisis and recession. To this end, it is proposed to act on the budgetary expenditure of the State (fiscal policy) due to the multiplier effect it produces in the face of an increase in aggregate demand and its relation with the level of employment and income.
Unemployment is one of the main problems of crises, Keynes argued that unemployment does not exist due to the scarcity of resources, but due to the scarcity of demand, which causes that it is not consumed enough to have to produce a quantity of goods That work for all. Put another way, the problem of unemployment is the lack of demand and not the lack of resources.
Influenced by the harrowing unemployment problems created by the Great Depression of 1929, J. M. Keynes focused his attention on the analysis of short-term economic problems. Keynes’s is a short-term macroeconomic theory with rigid downward wages. “In the long run, all dead,” as Keynes himself liked to say. Keynes distrusted the effectiveness of monetary policy as an adequate instrument to influence the level of income, because of the so-called liquidity trap; That is to say, when from a certain interest rate, which people think is very low, the money demand curve becomes infinitely elastic and successive increases in money supply can not get it lower. In these situations the monetary policy has to be complemented with the proper management of public revenues and expenditures. Keynesian macroeconomic theory is clearly interventionist, contrary to the doctrine of laissez faire.
In conclusion, Keynesianism is based on stimulating demand to provoke an increase in consumption and employment in times of crisis. And how is demand stimulated? Through monetary and fiscal policies. Keynes was in favor of using fiscal policies. Although in the late twentieth century, the debts of Western countries began to grow in such a way that Keynesianists began to recommend monetary policies as a mechanism to stimulate demand.
While the political-economic repercussions of Keynes and several of his supporters are varied, some believe that the idea of Keynesianism is to save capitalism or keep it stable.

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