keynesian economics is a school of thought in which government plays an important role in mitigating economic recessions. it's named after british economist john maynard keynes who advocated the need for a government intervention during the height of the great depression. keynes argued that governments needed to push against the economic tide in order to lessen the impact of the boom and burst cycles that were inevitable in a free market economy. in other words, keynes said that the government should spend less money during times of economic prosperity and spend more during the downturn. by and large, proponents of keynesian economics believe that a depression is caused mainly by excessive savings and a decrease in aggregate demand, which is the total demand for goods and services in a country. the role of the government is to spend where necessary in order to stabilize the economy whether it's by lowering interest rates or increasing governmental ?. for example, the country of invest america applies aspects of keynesian economics to its fiscal and monetary policies. when invest america's economy is in the midst of the boom period, lawmakers ? the tax rate, cut spending on social programs and increase the cost of borrowing money. however, when invest america enters a recession, the government lowers taxes and interest rates and spends more money on programs in order to stimulate economic activity.
- during the height of・・・～の真っ最中に
- in the midst of・・・～の真っ最中に
- social program・・・社会制度