John Maynard Keynes

2017 ◽  
Author(s):  
John Kenneth Galbraith
Keyword(s):  
General Theory ◽  
Government Spending ◽  
Full Employment ◽  
Government Expenditures ◽  
John Maynard Keynes ◽  
Winston Churchill ◽  
Modern Economy ◽  
The Government

This chapter examines the economic ideas of John Maynard Keynes. According to Keynes, the modern economy does not necessarily find its equilibrium at full employment; it can find it with unemployment. This is the underemployment equilibrium, in which Say's Law no longer holds; there can be a shortage of demand. The government can and should take steps to overcome this shortage. The chapter discusses in more detail the underemployment equilibrium, the repeal of Say's Law, the call for government spending uncovered by revenues to sustain demand—all of which made up the so-called the Keynesian Revolution. In particular, it considers Keynes's central prescription that there should be government expenditures financed by borrowing to sustain demand and employment. It also analyzes Keynes's criticism of Winston Churchill, his A Treatise on Money (1930), and the economic discussion that followed the publication of The General Theory of Employment Interest and Money (1936).

scholarly journals The Effect of Government Expenditures on Economic Growth. the Case of Albania

2014 ◽  
Vol 2 (1) ◽  
pp. 242
Author(s):  
Lorena Çakerri ◽  
Migena Petanaj ◽  
Oltiana Muharremi
Keyword(s):  
Economic Growth ◽  
Economic Policy ◽  
Fiscal Policy ◽  
Government Spending ◽  
National Income ◽  
Policy Instruments ◽  
Government Expenditures ◽  
Global Crisis ◽  
The Government ◽  
The Impact

One of the main issues of economic policy and government is to ensure a sustainable economic growth of a country.Economic growth has been at the center of every government in place since at least year 2000.Though for this teen-year ,growth values were satisfactory in Albania, the macroeconomic situation changed in 2009,when appeared the elements of the global crisis. Economic global crisis has awakened interest in the case of fiscal policy.Fiscal policy and monetary policy as well, are two basci components of state economic policy which are used for macroeconomic purposes:influence of gross domestic product, the level of enmployment, income and price level. The two main instruments of fiscal policy are government expenditures and taxes. Government expenditures are considered as the most powerful weapon available to fiscal policy makers, especially in developing countries such as Albania. During the last century , governments have spent more and more in relation to their national income. This increase in government spending can be explained by the impact that this variable can have on the economic growth of a country? In fact ,about the connection between the government spending and the economic growth of a country various studies seem full of contradictions.This conflict is explained by changes in terms of definitions and from the differencies of the various countries included in these studies. The objective of this study is to give an appropriate answer to the question : Can government spending have the potential to impact and stimulate economic growth? How the changes of the size of the fiscal policy instruments have affected indicators of economic growth in Albania? This article will focus on the role that the fiscal policy has on economic growth , especially in our country, reviewing economic growth theories, debates about the effectiveness of fiscal policy , and active fiscal policy. Finally some suggestions for the future addressing the government expenditures towards priority sectors.

scholarly journals A Pitfall with Estimated DSGE-Based Government Spending Multipliers

2013 ◽  
Vol 5 (4) ◽  
pp. 141-178 ◽  
Author(s):  
Patrick Fève ◽  
Julien Matheron ◽  
Jean-Guillaume Sahuc
Keyword(s):  
Government Policy ◽  
Government Spending ◽  
Private Consumption ◽  
Government Expenditures ◽  
Long Run ◽  
The Government ◽  
Endogenous Component

This paper examines issues related to the estimation of the government spending multiplier (GSM) in a DSGE context. We stress a source of bias in the GSM arising from the combination of endogenous government expenditures and Edgeworth complementarity between private consumption and government expenditures. Due to cross-equation restrictions, omitting the endogenous component of government policy at the estimation stage would lead an econometrician to underestimate the degree of Edgeworth complementarity and, consequently, the long-run GSM. An estimated version of our model with US postwar data shows that this bias matters quantitatively. The results are robust to a number of perturbations. (JEL E13, E23, E32, E62, H50)

scholarly journals KEYNES’ CRITIQUE OF THE CLASSICAL AND NEOCLASSICAL THEORIES OF THE RATE OF INTEREST

2019 ◽  
Vol 37 (72) ◽  
Author(s):  
André Cutrim Carvalho ◽  
David Ferreira Carvalho
Keyword(s):  
General Theory ◽  
Interest Rates ◽  
Economic System ◽  
Classical Theory ◽  
Critical Analysis ◽  
Full Employment ◽  
John Maynard Keynes ◽  
Independent Variables ◽  
Special Case

The classical theory of the rate of interest is the theory that mainstream economists inherited chiefly from Marshall, Ricardo and Wicksell, and is also this same theory that John Maynard Keynes criticizes in his General Theory for presenting an explanation centered solely on the special case of full employment. Despite the difficulties, Keynes offered a scathing critique of the theory of the rate of interest from both classical and neoclassical economists. This was only made possible because the traditional rationale of these economists remained imprisoned by the trap set by Say's Law. Therefore, within this context, the main objective of this paper is to undertake a critical analysis of Keynes regarding the classical general theory of the rate of interest, through which we may then demonstrate the points on which he was in disagreement with the neoclassical school. The main conclusion is that Keynes considered that traditional analysis is defective because it was unable to identify the independent variables of the system. Indeed, savings and investment are determined variables and not the determinants of the dynamics of the capitalist economic system. Such determined variables are the twin product of the true determinants, i.e., from the propensity to consume, from the scale of the marginal efficiency of capital and from the interest rates, and this is why the flow of investments tends to expand until the marginal efficiency of capital remains at the rate of interest.

scholarly journals A quantitative analysis of sources of changes in government expenditures on health, 2000 to 2015: what can we learn from experience to date?

2021 ◽  
Vol 3 ◽  
pp. 5
Author(s):  
Helen Saxenian ◽  
Ipchita Bharali ◽  
Osondu Ogbuoji ◽  
Gavin Yamey
Keyword(s):  
Economic Growth ◽  
Government Spending ◽  
Government Expenditure ◽  
Health Expenditures ◽  
Government Expenditures ◽  
Government Budget ◽  
Current Health ◽  
Domestic Sources ◽  
The Government ◽  
A Share

Background: Achieving universal health coverage (UHC) requires increased domestic financing of health by low-income countries (LICs) and middle-income countries (MICs). It is critical to understand how much governments have devoted to health from domestic sources and how much growth might be realistic over time. Methods: Using data from WHO’s Global Health Expenditure Database, we examined how the composition of current health expenditure changed by financing source and the sources of growth in health expenditures from 2000-2015 across different income groups. We disaggregated how much growth in government expenditures on health from domestic sources was due to economic growth, growth in government spending as a share of GDP, and reallocations in government expenditures towards health. Results: Lower MICs (LMICs) and upper MICs (UMICs), as a group, saw a significant reduction in out-of-pocket expenditures and a significant growth in government expenditures on health from domestic sources as a share of current health expenditures over the period. This trend indicates likely progress in the pathway to UHC. For LICs, these trends were more muted. Growth in government expenditure on health from domestic sources was driven primarily by economic growth in LICs, LMICs, and UMICs. Growth in government expenditure on health due to increased government spending as a share of GDP was high in UMICs. For the high-income country group, where economic growth was relatively slower and government spending was already high with strong tax bases, the largest driver of growth in government expenditure on health from domestic sources was reallocation of the government budget towards health. Conclusions: Dialogue on domestic resource mobilization needs to emphasize overall economic growth and growth in the government spending as a share of GDP as well as the share of health in the government budget.

scholarly journals Efisiensi Belanja Pemerintah Terhadap Indeks Pembangunan Manusia Secara Regional di Indonesia

2021 ◽  
Vol 3 (3) ◽  
pp. 15
Author(s):  
Indra Kurniawan ◽  
Murtala Murtala ◽  
Reza Juanda
Keyword(s):  
Human Development ◽  
Government Spending ◽  
Human Development Index ◽  
Social Protection ◽  
Government Expenditure ◽  
Government Expenditures ◽  
Data Envelopment ◽  
Development Index ◽  
Efficient Level ◽  
The Government

This study analyzed the efficient level for Government expenditure on the regional Human Development Index (HDI) in Indonesia in 2014-2018. This study used panel data with the number of DMUs in 34 provinces in Indonesia, while the input variable was government spending in the health, education, economy, social protection sectors, and the output variable was the human development index for 2014-2018. This study used Data Envelopment Analysis (DEA) testing and focused on input (input-oriented) by using the assumption of Variable Return to Scale (VRS). The results showed that only 14 provinces were efficient in using Government Expenditures to increase HDI, but 20 provinces were inefficient in using Government Expenditures to increase HDI. Thus it is hoped that all provinces, especially those who were inefficient, can improve their performance in the use of government expenditure budgets that have been used in increasing the HDI value and the government can make decisions or policies in the problem of achieving the HDI value for each province in Indonesia.

The Macroeconomic thought of Nicholas Barbon

2007 ◽  
Vol 29 (1) ◽  
pp. 101-116
Author(s):  
James H. Ullmer
Keyword(s):  
General Theory ◽  
Scientific Inquiry ◽  
Economic Thought ◽  
John Maynard Keynes ◽  
Major Defect

Nicholas Barbon (1640–1698) is little appreciated by most historians of economic thought. He is sporadically mentioned in a few writings—probably the most well-known being the favorable reference to him made by John Maynard Keynes (1883–1946) in The General Theory of Employment, Interest, and Money (Keynes 1936, p. 359). The fullest treatment of Barbon's economic ideas is contained in The Origin of Scientific Economics: English Economic Thought 1660–1776 by William Louis Letwin (Letwin 1963, pp. 48–75). Letwin considers a major defect of Barbon's first purely scientific inquiry into economics, A Discourse of Trade (Barbon 1690), and by implication, his other economic writings, to be “the logical incoherence of its parts” (Letwin 1963, p. 57). This criticism is not surprising in light of the pre-paradigm period in which Barbon was writing.

scholarly journals “The British Soldier is no Bolshevik”: The British Army, Discipline, and the Demobilization Strikes of 1919

2018 ◽  
Vol 30 (3) ◽  
pp. 321-346 ◽  
Author(s):  
William Butler
Keyword(s):  
Armed Forces ◽  
British Army ◽  
Political Climate ◽  
Civilian Life ◽  
Daily Mail ◽  
Winston Churchill ◽  
The Press ◽  
The Government ◽  
Post War ◽  
The Military

Abstract This article considers the breakdown in discipline in the British Army which occurred in Britain and on the Western Front during the process of demobilization at the end of the First World War. Many soldiers, retained in the army immediately after the Armistice, went on strike, and some formed elected committees, demanding their swifter return to civilian life. Their perception was that the existing demobilization system was unjust, and men were soon organized by those more politically conscious members of the armed forces who had enlisted for the duration of the war. At one stage in January 1919, over 50,000 soldiers were out on strike, a fact that was of great concern to the British civilian and military authorities who miscalculated the risk posed by soldiers. Spurred on by many elements of the press, especially the Daily Mail and Daily Herald, who both fanned and dampened the flames of discontent, soldiers’ discipline broke down, demonstrating that the patriotism which had for so long kept them in line could only extend so far. Though senior members of the government, principally Winston Churchill, and the military, especially Douglas Haig and Henry Wilson, were genuinely concerned that Bolshevism had ‘infected’ the army, or, at the very least, the army had been unionized, their fears were not realized. The article examines the government’s strategy regarding demobilization, its efforts to assess the risk of politicization and manage the press, and its responses to these waves of strikes, arguing that, essentially, these soldiers were civilians first and simply wanted to return home, though, in the post-war political climate, government fears were very real.

scholarly journals Agriculture, Manufacturing and Economic Growth in Nigeria

2021 ◽  
Vol 04 (03) ◽  
Author(s):  
Atayi Abraham Vincent ◽  
Keyword(s):  
Government Spending ◽  
Agricultural Sector ◽  
Manufacturing Sector ◽  
Research Work ◽  
Least Square Method ◽  
Least Square ◽  
Ordinary Least Square ◽  
Positive Effects ◽  
The Government ◽  
Positive Effect

This research work address the positive effect of Agriculture on the manufacturing sector in Nigeria. The study made used of Ordinary Least Square Method estimation techniques. The findings showed that Agricultural output, government spending on agriculture, and real gross domestic product all have positive effects on the manufacturing sector. The effects is RGDP 66percent, AGRQ by 63%, and GOEXA by 96 percent. The study recommends among other things that government should allocate more resources to the Nigerian agricultural sector and ensure that the funds are judiciously use and that the government should also seek to strengthen its incentives for the manufacturing sector in order to promote increased industrial production and growth.

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