John Maynard Keynes and Stabilization Measures
This chapter shows how GDP is determined in Keynesian theory and presents Keynes’ explanation of trade cycles in a capitalist economy. It also discusses the stabilization measures, fiscal and monetary policies, suggested by Keynes to counter the twin evils of a capitalist economy, namely, recession and inflation.
KeywordsTrade cycle Fiscal policy Monetary policy
- Keynes, J. M. (1936). General Theory of Employment, Interest and Money. London: Macmillan.Google Scholar