October 13, 2019

MACROECONOMIC THOUGHTS.PART 10

Keynes himself was engrossed in his writing during the turbulent period,when the world economy was burning over his head.Though embarrasingly obvious by findings,he did not trust the intergrity of the solution,he profered or fully subscribed to the model and albeit the abject skepticism,not utter belief in the proposed state of equilibrium. This was particularly comical for a man who taught classical economics at cambridge for years,prior to his change to tore down the entire fabric of the profession that endowed with livelihood.Nevertheless was skeptical of the private sector guarranteeing robust economy and championed interventionism.So,it was not surprising when he heavily criticised his home government of the period and the bias to cut welfare spending and raise taxes to balance national account.This discouraged consumer spending and blocked the economy from recovery to equilibrium state.In the keynesian counter cyclical fiscal policy's multiplier effect being one of the chief component of the policy

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