John Maynard Keynes and Stabilization Measures

  • Chandana Ghosh
  • Ambar Nath Ghosh


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.


Trade cycle Fiscal policy Monetary policy 


  1. Keynes, J. M. (1936). General Theory of Employment, Interest and Money. London: Macmillan.Google Scholar

Copyright information

© The Author(s) 2019

Authors and Affiliations

  • Chandana Ghosh
    • 1
  • Ambar Nath Ghosh
    • 2
  1. 1.Economic Research UnitIndian Statistical InstituteKolkataIndia
  2. 2.Economics DepartmentJadavpur UniversityKolkataIndia

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