I have come across Keynesian economics while doing some research, but the Wikipedia explanation didn’t really shed any light on the concept. Could someone help me out, possibly with some hypothetical examples.
In: Economics
Keynesian economists believe the economy reaches the long run very slowly, so monetary policy is necessary to balance things out in the short run.
Conversely, classical economists believe the economy adjusts to the long run rather quickly, so monetary policy isn’t necessary in the short run. These economists are more likely to take a non-activist approach.
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