Keynesian economics dominated economic theory and policy after World War II until the 1970s, when many advanced economies suffered both inflation and slow growth, a condition dubbed “stagflation.” ...

According to Keynesian economics, it is the role of the government to step in during these periods to modify monetary policy and stimulate the economy to maintain stability. Keynesian economists ...

Still, there are concerns that measures tied to Keynesian economics can have negative outcomes. Fiscal policy measures meant to stimulate the economy can lead to wider budget deficits and rising ...

Join us for the 2025 Economica-Phillips Lecture which will be delivered by Valerie Ramey. Starting in the 1930s, Keynesian fiscal stimulus was the leading policy tool for fighting recessions, but it ...