StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Re-conceptualisation of Optimal Relationships between the State and the Market - Keynesianism - Research Paper Example

Cite this document
Summary
The paper "Re-conceptualisation of Optimal Relationships between the State and the Market - Keynesianism" states that the state and the market should join forces to battle the largest economic burst of this century, relying on the theories of John Maynard Keynes as a starting point…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER91.3% of users find it useful
Re-conceptualisation of Optimal Relationships between the State and the Market - Keynesianism
Read Text Preview

Extract of sample "Re-conceptualisation of Optimal Relationships between the State and the Market - Keynesianism"

Download file to see previous pages

Keynesianism or Keynesian economics is an economic theory based on the ideas John Maynard Keynes, as put forward in his book The General Theory of Employment, Interest and Money, available in 1936 as an answer to the Great Depression of the 1930s. Keynesianism advocates for a mixed economy, in which the state, as well as the market or the private sector, have both significant functions to operate. It should be noted that the advent and eventual rise of Keynesianism saw the collapse of laissez-faire economics which was of the view that both the state and the market could function, each on its own.

Keynesianism also emphasizes the significance of aggregate demand for goods as the lashing factor of the economy, particularly in periods of recession. For this reason, government plans or policies could be made use of to promote demand at a macro level, to counter high unemployment as well as deflation. A significant conclusion of Keynesianism is that there is not a tough and automatic propensity for output and employment to move to full employment levels. Effective demand is, therefore, the fundamental idea underlying Keynesianism.

After Keynes, a good amount of concentration has been dedicated to the problem of probability and uncertainty in Keynes’s General Theory by a set of economists frequently called ‘Post-Keynesians’. Over the years, there have risen a lot of economic theories and propositions which no longer see Keynesianism as a spur. As Chick and Tily (2004) mention in mainstream economics, Keynes is dead1. Leijonhufvud (2008)2 gives explanations on the hypothetical blindness of the economic profession vis a vis interpretations from Keynesianism of the present financial crisis to conventional reliance on market efficiency theory, expectations based on reason as well as the representative agents3.

Wray and Teymogne (2008) make us reminiscent of the fact that “the efficient market hypothesis, like all approaches derived from the old neoclassical theory, relegates money.

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(Re-conceptualisation of Optimal Relationships between the State and Research Paper, n.d.)
Re-conceptualisation of Optimal Relationships between the State and Research Paper. Retrieved from https://studentshare.org/macro-microeconomics/1752127-to-what-extent-was-john-maynard-keynes-principal-contribution-to-political-economy-a-re-conceptualisation-of-optimal-relationships-between-the-state-and-the-market
(Re-Conceptualisation of Optimal Relationships Between the State and Research Paper)
Re-Conceptualisation of Optimal Relationships Between the State and Research Paper. https://studentshare.org/macro-microeconomics/1752127-to-what-extent-was-john-maynard-keynes-principal-contribution-to-political-economy-a-re-conceptualisation-of-optimal-relationships-between-the-state-and-the-market.
“Re-Conceptualisation of Optimal Relationships Between the State and Research Paper”, n.d. https://studentshare.org/macro-microeconomics/1752127-to-what-extent-was-john-maynard-keynes-principal-contribution-to-political-economy-a-re-conceptualisation-of-optimal-relationships-between-the-state-and-the-market.
  • Cited: 0 times

CHECK THESE SAMPLES OF Re-conceptualisation of Optimal Relationships between the State and the Market - Keynesianism

Relationship between Labor Market and Education

In this paper we analyze the relationship that exists between the labor market and education.... The first relationship analyzed is the relationship between work status and education level attained, the other relationship is between the minimum pay an individual is willing to be paid and education.... In the labor market people who have higher educational attainment are paid more than others, for example PhD holders will be paid higher wage rates than bachelors degree holders, in this case we analyze education level and lowest wage willing to accept, the following table summarizes the results: The above table summarizes the percentage of those who are willing to paid 4....
3 Pages (750 words) Essay

Optimal Number of Firms in the Market

The essay "Optimal Number of Firms in the market" focuses on the discussion of the dilemma of the optimal quantity of companies in the market.... It is unreal in terms because we cannot simply expect to have an equal demand and supply, always there would be greater deviations in the market and somehow both supply and demand would get disturbed; of course, it is unintentional but that is inevitable as a consequence of which we have to keep the constraints and solutions in mind....
8 Pages (2000 words) Essay

The Differences between Markets and Central Planning

This theory defines the existence of firms in the market economy in that despite the existence of externalities and conflict, firms in a market economy will, in the long run, will attain equilibrium through bargain and this will ensure proper allocation of resources and property rights The price elasticity of demand is a measure of the responsiveness of the quantity demanded as a result of change in the price of a good or service, high price elasticity of demand means that when price is increased by one unit then demand will decline by one or more units, there are those goods and services with inelastic, elastic and perfect elasticity of demand....
4 Pages (1000 words) Literature review

What is the optimal rate of inflation

Essentially there are several different concepts which come together to make up the idea of inflation since it includes everything… There are several different measures of inflation including the Consumer Price Index (CPI) or the GDP deflator which reflects inflation as an function of the economy (Wikipedia, The causes of inflation are many and complex but economists do point towards the interaction between the output given by an economy and the supply of money in a system as well as the interest rates established by the government as guides for what inflation would be present in a country....
4 Pages (1000 words) Essay

Relationships Between Staff and Patients

I consider social / business / romantic relationships between physician/staff and patients as potentially dangerous to the latter's well-being because of the imbalance of power between the two parties.... The issues: sexual or romantic interactions between physicians and patients / former patient / a key third party, social / business relationships between staff and patientsThe ethical problem: sexual contact between physician and patient/former patient / a key third party can be detrimental to the latter's physical/emotional/ social well-being, social / business relationships between staff and patients can turn into (or maybe perceived as) exploitative relationships....
3 Pages (750 words) Assignment

Keynesianism

These may include core elements, characteristics, relationships, or dimensions.... The theory basically deals with how much is spent in an economy and its results.... In his attempt to understand economic depression, Keynes proposed… The term Keynesian economy is used to explain the fact that economic efficiency could be reached and a flop avoided....
4 Pages (1000 words) Research Paper

The Structure of Airline Market in the United States: The Case of AMR Corporation

A collusion of the big firms was predicted to lower prices that would ensure small firms are kicked out of the market making them a monopoly.... The company and its affiliates are considered to collude in the operations of the airline limiting the number of firms in the market that would have resulted in a monopoly.... hrough this behavior, consumers will be forced to pay additional prices so as to secure the services which will make the market to be extremely expensive as the supply will be reduced as demand rises translating to high prices....
6 Pages (1500 words) Case Study

FLOW: The Psychology of Optimal Experience

In this case, people in the “flow” seemingly achieve the state of consciousness, which is in harmony with their feelings and environment.... The author examines the book “FLOW: The Psychology of optimal Experience” authored by Mihaly Csikszentmihalyi which provides a description of the way people can create meaning in their lives.... This definition relates to the achievement of a state of fulfillment or satisfaction in life....
8 Pages (2000 words) Book Report/Review
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us