Named for economist John Maynard Keynes. An economic theory which advocates government intervention, or demand-side management of the economy, to achieve full employment and stable prices. see also Reaganomics, supply-side economics.
Theories developed by the U.K.'s John Maynard Keynes based on a cause and effect analysis of variations in aggregate spending and income. These thoughts opposed the free market philosophy and believed that economic performance could be improved by government intervention. They held sway in the 1960s and 1970s in the Western world.
Body of economic thought originated by the British economists and government adviser, John Maynard Keynes (1883-1946), that active government intervention is necessary to ensure economic growth and stability. Keynesian economics had a great influence on the public economic policies of industrial nations, including the United States.