keynesianism
/ˈkeɪnziənɪzəm/
noun
- An economic theory based on the ideas of John Maynard Keynes, which says that government spending and tax policies should be used to manage demand, reduce unemployment, and prevent economic recessions.
- Keynesianism argues that during a recession, the government should spend more to create jobs.
- The debate between Keynesianism and free-market economics continues to shape modern policy.
- Many governments turned to Keynesianism during the 2008 financial crisis to stimulate their economies.