SOSC 1520 Lecture Notes - Lecture 16: John Maynard Keynes, International Financial Institutions, Effective Demand
6 Feb 2017
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Crisis of the minimal state (neoclassical economic model: great depression (1930s) John maynard keynes: interventionist state, demand management. *keynes saw a more active role for the state as necessary for the survival of capitalism and believed that the government needs to take a more active role in the economy: counter-cyclical policies (stabilization policies) Wartime economy: example of successful state intervention. Keynesian economics is commonly referred to as demand economics. Fixed exchange rates: stability of currencies (gold standard) For control over your economy and for trade. Gatt (general agreement on tax and trade: promotion of free trade, state: Monetary policy (interest rates: how much money you print, take out, trades, etc, a tool used by the government to maintain a stable economy. Fiscal policy (tax and spend) (spending policy) Sosc 1520 - the keynesian welfare state: automatic stabilizers (counter cyclical) Ui, welfare: social programs (education, ohip, pension) Regulatory policy: standards, minimum wage, collective bargaining, production (fordism):
