Modern Keynesianism is dominated by two trends: American, associated with the names of a number of US economists, and European, associated primarily with the research of French economists.
Features of neo-Keynesianism in the USA
Among the American followers of J.M.
Keynes' most often mentioned are E. Hansen, S. Harris, J.M. Clarke et al. They, based on the teachings of J.M. Keynes, considered it expedient to increase taxes on personal income (up to 25% or more), increase the size of government loans and issue money to cover government spending (even if this would increase inflation and the deficit state budget).
Another "addition" to Keynesianism is the "replacement" of the method of permanent regulation and the direction of private and public investment by the method of maneuvering government spending depending on the economic situation. So, during periods of economic recovery, investments are limited, and during periods of slowdown or recession, they increase (despite a possible budget deficit).
Finally, if J.M. Keynes in his theory relied on the principle of the multiplier, which means that income growth is accompanied by a decrease in investment growth, then in the USA (according to E. Hansen's theory) an additional principle was put forward - the accelerator principle, which means that income growth in specific cases can increase investment ... The meaning of the addition is as follows: some types of equipment, machines and mechanisms have a relatively long production period, and the expectation of this period psychologically affects the expansion of the production of the required equipment or machines in volumes exceeding real demand, which means that the demand for investment also grows.
Features of neo-Keynesianism in France
Economists of France (F. Perroux and others) considered the position of J.M. Keynes on the regulation of the interest rate as a means of stimulating new investment. Assuming that it is corporations with a predominant share state property are the dominant and coordinating force of society, they focused on the use of the indicative method of planning the economy as a determining means of influencing the sustainability of the investment process. At the same time, indicative planning is recommended in order to formulate mandatory tasks only for the public sector of the public economy and long-term achievable forecasts for the economy as a whole; alternative to indicative imperative planning is considered as directive, socialist and therefore is considered unacceptable.
Economic growth theories
In the 50s. some supporters of the basic ideas of the economic doctrine of J.M. Keynes and his followers in terms of justifying the need and possibility of state regulation of the economy (due to the lack of balance between supply and demand in a spontaneous market) took these ideas as a starting point for the development of new theories, the essence of which was to clarify and substantiate the mechanism of constant rates economic growth. As a result, the so-called neo-Keynesian growth theories arose, based on taking into account the multiplier-accelerator system 37 and modeling economic dynamics using the characteristics of the relationship between accumulation and consumption.
The main representatives of the above-mentioned theories of economic growth were the professor at the Massachusetts Institute of Technology Yevsey Domar (born in 1914) and the professor at the University of Oxford Robert Harrod (1890-1978). Their theories (models) are united by a common conclusion about the advisability of a constant (stable) rate of economic growth as a decisive condition for dynamic equilibrium (forward movement) of the economy, at which full use of production capacities and labor resources... Another provision of the Harrod-Domar model is the recognition of the assumption that parameters such as the share of savings in income and the average efficiency of investments are constant in the long run. And the third similarity is that both authors achieve dynamic equilibrium and constant growth were considered not automatically possible, but the result of the corresponding public policy, i.e. active government intervention in the economy.
Distinctive features in the models of E. Domar and R. Harrod are due only to some difference in the initial positions of the model construction. Thus, R. Harrod's model is based on the idea of equality of investments and savings, and in E. Domar's model, the initial is the equality of monetary income (demand) and production capacity (supply) 38.
At the same time, both E. Domar and R. Harrod are unanimous in their beliefs about the effective role of investments in ensuring income growth, increasing production capacity, believing that income growth contributes to an increase in employment, which, in turn, prevents the occurrence of underutilization of enterprises and unemployment. ... This belief is an expression of the unconditional recognition of these authors of the Keynesian concept of the dependence of character and dynamics economic processes on the proportions between investments and savings, namely: the outstripping growth of the former is the reason for the increase in the price level, and the latter is the reason for the underutilization of enterprises, underemployment39.
Modern evaluations of the ideas of neo-Keynesianism
Among the extraordinary, but in many respects well-founded conclusions about modern Keynesianism, the conclusion of K. Howard and G. Zhuravleva is noteworthy, who write as follows: “The implementation of the general theory of J. Keynes in practice led the Western countries to a socialist orientation. Unfortunately, each country has done this by increasing its national budget deficits. The deficits of Western countries are now enormous. Another misfortune of this policy was endless inflation. Central banking system had to constantly increase money supply to meet the deficit-driven needs of the government, and this led to inflation as a result ”40. However, according to Blaug, these problems are a natural consequence of the fact that “the goal of the Keynesian economic theory was to strengthen the mood in favor of public works, leaving the burden of theoretical justification for those who would try to eliminate unemployment by reducing wages ”41.
More on the topic § 2. Neo-Keynesian doctrines of state regulation of the economy:
- 10.3. State regulation of the interaction of the national economy with the world economy (state foreign economic policy)
One of the most famous and recognized areas of economic theory, which proposed its own recipes for regulating the economy, is inextricably linked with the name and works of the Englishman John Maynard Keynes (1883-1946).
In the 30s, when it was developed and published “ General theory employment, interest and money ”, the problem was to find methods to ensure a way out of the deep crisis, to create conditions for the growth of production and overcoming mass unemployment.
Ideas put forward by Keynes
Keynes' merit is that he proposed a new approach, developed a new theory of regulation of production and employment. Keynes drew attention to the fact that as social wealth grows, the problem of maintaining effective demand becomes more complex and urgent. People tend to save more and more of their income. The identification of savings with real accumulation does not correspond to real practice; saved rubles and dollars do not automatically pass into the accumulated part of the social product. Savings and investments should be separated. If savings are greater than investments, then economic activity falls, and growth rates decline. If savings are less than investments, activity intensifies.
Keynes criticized the so-called Say's Law, which was shared by many. The French economist Jean-Baptiste Say (1762-1832) believed that production itself generates income, providing an appropriate demand for goods, which supposedly excludes the general overproduction of goods and services. Violations can occur for individual products or product groups due to any external reasons, and not due to imperfection of the economic mechanism itself. Therefore, the state should not interfere with the work of the market mechanism.
However, goods are not simply exchanged "commodity for commodity", but are bought and sold. If the demand is less than the product produced in society, then a discrepancy arises, part of the production does not find sale. Prices do not always have time to equalize supply and demand, and in modern conditions generally have a tendency to increase, not decrease.
Keynes comes to the conclusion: the size of production and employment, their dynamics are determined not by supply factors, but by factors of effective demand. The focus should be on the consideration of demand, its components, factors affecting demand. - is the real volume of national production of goods and services that households, firms and the state are ready to buy when this level prices.
As income increases, not all income will be directed towards purchasing goods. Part of the income will go to savings. Moreover, as income rises, the propensity to consume decreases, while the propensity to save increases. This is a kind of psychological law.
The second brake is a decrease in investment efficiency. With an increase in the amount of accumulated capital, the rate of profit decreases by virtue of the law of diminishing productivity of capital. If the rate of profit does not differ much from the rate of interest, then the expectation of obtaining high incomes from the expansion and modernization of production turns out to be unattractive. The demand for investment goods is falling, and meanwhile, it is investment that plays a decisive role in expanding effective demand.
Therefore, Keynes, first, proposed lowering interest rates on loans, which would increase the gap between the cost of loans and the expected return on investment, and raise their "marginal efficiency." Entrepreneurs will invest cash not in securities, but in the development of real production.
Second, to stimulate effective demand, Keynes proposed increasing government spending, increasing government investment, and state procurements goods.
Third, a redistribution of income was proposed in order to increase the money demand of mass buyers.
Keynes considered budgetary policy as the main instrument of macro regulation. During an economic downturn, investment does not respond well to declining levels interest rate(monetary regulation method). This means that the main attention should be paid not to lowering the interest rate (an indirect form of regulation), but budgetary policy, including increased costs and investment activities the state itself, which stimulate investment by firms.
The concept of the multiplier plays an important role in Keynesian theory. Translated multiplier means "multiplier" (multiplication - multiplication, increase; multiplier - multiplier, coefficient). The multiplier shows the dependence of the increase in national income on the increase in investment. The multiplier increases when consumers tend to use the increase in their income to increase consumption. On the contrary, it decreases if consumers' propensity to accumulate savings increases.
Speaking about the multiplier effect, Keynes had in mind, first of all, expenditures from the state budget, for example, on the organization of public works. He ironically noted that it would be possible to organize meaningless work, for example, filling bottles with banknotes and burying them in the ground so that the unemployed would look for them.
Development of Keynesian theory
Keynesian theory influenced the directions and areas of further research. Keynes's use of macroeconomic analysis stimulated the development of a system of national accounts closely aligned with practical needs economic regulation... Keynes's ideas are inextricably linked to the development of the initial provisions of countercyclical policy, the concept of deficit financing, and the system of state medium-term programming.
Keynesian theory dominated from the second half of the 30s to the early 70s. The changed economic situation, aggravation of inflationary processes in combination with stagnation of production (stagflation) required the search for new instruments and methods of economic regulation.
Unlike Keynes, and at the same time relying on Keynes's fundamental conclusions, his followers substantiated the following propositions:
- government intervention in the economy should not be episodic, but permanent;
- investment investments are recommended to be directed not so much to public works (this is Keynes's "recipe"), but to science-intensive industries, in new technique and new technologies;
- in accordance with this, there is a need to stimulate and support structural changes.
In an effort to reconcile the views of primarily neoclassicists and neo-Keynesians, the American economist Paul Samuelson (b. 1915) put forward the idea of a synthesis that combines modern methods of analysis with the principles of the classics - A. Smith, D. Ricardo, etc. As the name suggests, neoclassical synthesis is further development and, at the same time, in some way "reconciliation" of approaches to the analysis of economic processes. If, for example, Keynes rather critically assessed the ability of prices to respond flexibly to changes in market conditions, then representatives of the neoclassical synthesis sought to "rehabilitate" prices, arguing that they contribute to the optimal distribution and the most complete use of resources.
Neoclassical synthesis is distinguished by the expansion of research topics: a whole series of works on the problems of economic growth has been created; methods of economic and mathematical analysis are being developed; the theory of general economic equilibrium was further developed; the method of analysis of unemployment and methods of its regulation are proposed; the theory and practice of taxation has been thoroughly studied. Franco Modigliani (b. 1918) described the patterns of the formation of personal savings, the motives of investor behavior and investment decisions. James Tobin (1918-2002) developed the theory of portfolio investment choice and concluded that investors tend to combine higher risk and less risky investments in order to balance their investments.
In the neoclassical synthesis, the applied aspect of economic theory was developed. American scientist of Russian origin Simon Kuznets (1901 - 1985), along with solving other issues, developed a statistical basis for calculating national income, proposed methods for calculating the country's gross domestic and net product. Lawrence Klein (b. 1920) constructed models of the economies of the United States, Japan and other countries, and organized the Link Project to present a picture of international economic and trade relations.
Nsoxinsianism covers various versions and methods - building macroeconomic models, conducting econometric studies, analyzing the relationship between inflation and unemployment, the impact of technological progress and population growth on capital accumulation processes. V last years within the framework of the neo-Xinesian direction, new Keynesians appeared (J. Stiglitz and others). New Keynesians seek to "reconcile" the analysis of behavior at the micro level with the processes of macroeconomic regulation.
§ 2. neo-Keynesian doctrines of state regulation of the economy
Modern Keynesianism is dominated by two trends: American, associated with the names of a number of US economists, and European, associated primarily with the research of French economists.
Features of neo-Keynesianism in the USA
Among the American followers of J.M. Keynes' most often mentioned are E. Hansen, S. Harris, J.M. Clarke et al. They, based on the teachings of J.M. Keynes, considered it expedient to increase taxes on personal income (up to 25% or more), increase the size of government loans and the release of money to cover government spending (even if this would increase inflation and the government budget deficit).
Another "addition" to Keynesianism is the "replacement" of the method of permanent regulation and the direction of private and public investment by the method of maneuvering public spending, depending on the economic situation. So, during periods of economic recovery, investments are limited, and during periods of slowdown or recession, they increase (despite a possible budget deficit).
Finally, if J.M. Keynes in his theory relied on the principle of the multiplier, which means that income growth is accompanied by a decrease in investment growth, then in the USA (according to E. Hansen's theory) an additional principle was put forward - the accelerator principle, which means that income growth in specific cases can increase investment ... The meaning of the addition is as follows: some types of equipment, machines and mechanisms have a relatively long production period, and the expectation of this period psychologically affects the expansion of the production of the required equipment or machines in volumes exceeding real demand, which means that the demand for investment also grows.
Features of neo-Keynesianism in France
Economists of France (F. Perroux and others) considered the position of J.M. Keynes on the regulation of the interest rate as a means of stimulating new investment. Believing that it is corporations with a predominance of state ownership that are the dominant and coordinating force of society, they focused on the use of the indicative method of planning the economy as a determining means of influencing the sustainability of the investment process. At the same time, indicative planning is recommended in order to formulate mandatory tasks only for the public sector of the public economy and long-term achievable forecasts for the economy as a whole; alternative to indicative imperative planning is considered as directive, socialist and therefore is considered unacceptable.
Economic growth theories
In the 50s. some supporters of the basic ideas of the economic doctrine of J.M. Keynes and his followers in terms of justifying the need and possibility of state regulation of the economy (due to the lack of balance between supply and demand in a spontaneous market) took these ideas as a starting point for the development of new theories, the essence of which was to clarify and substantiate the mechanism of constant rates economic growth. As a result, the so-called neo-Keynesian growth theories arose, based on taking into account the “multiplier-accelerator” system 37 and modeling economic dynamics using the characteristics of the relationship between accumulation and consumption.
The main representatives of the above-mentioned theories of economic growth were the professor at the Massachusetts Institute of Technology Yevsey Domar (born in 1914) and the professor at the University of Oxford Robert Harrod (1890-1978). Their theories (models) are united by a common conclusion about the advisability of a constant (stable) rate of economic growth as a decisive condition for dynamic equilibrium (forward movement) of the economy, at which full use of production capacities and labor resources is achievable. Another provision of the Harrod-Domar model is the recognition of the assumption that parameters such as the share of savings in income and the average efficiency of investments are constant in the long run. And the third similarity is that both authors considered the achievement of dynamic equilibrium and constant growth not automatically possible, but the result of the corresponding state policy, i.e. active government intervention in the economy.
Distinctive features in the models of E. Domar and R. Harrod are due only to some difference in the initial positions of the model. Thus, R. Harrod's model is based on the idea of equality of investments and savings, and in E. Domar's model, the initial is the equality of monetary income (demand) and production capacity (supply) 38.
At the same time, E. Domar and R. Harrod are unanimous in their beliefs about the effective role of investments in ensuring income growth, increasing production capacity, believing that income growth contributes to an increase in employment, which, in turn, prevents the occurrence of underutilization of enterprises and unemployment. ... This conviction is an expression of the unconditional recognition by these authors of the Keynesian concept of the dependence of the nature and dynamics of economic processes on the proportions between investments and savings, namely: the outstripping growth of the former is the reason for the increase in the price level, and the latter is the reason for the underutilization of enterprises, underemployment39.
Modern evaluations of the ideas of neo-Keynesianism
Among the extraordinary, but in many respects well-founded conclusions about modern Keynesianism, the conclusion of K. Howard and G. Zhuravleva is noteworthy, who write as follows: “The implementation of the general theory of J. Keynes in practice led the Western countries to a socialist orientation. Unfortunately, each country has done this by increasing its national budget deficits. The deficits of Western countries are now enormous. The endless inflation became another misfortune of this policy. The central banking system was forced to constantly increase the money supply in order to meet the government's deficit-leading needs, and as a result this led to inflation. ”40 However, according to Blaug, these problems are a natural consequence of the fact that "the goal of Keynesian economics was to strengthen the mood in favor of public works, leaving the burden of theoretical justification for those who would try to eliminate unemployment by lowering wages."
Questions and tasks for control
Describe the features of the subject and method of studying J.M. Keynes.
Which economists J.M. Keynes refers to the classical school?
What is the essence of the "psychological law" of J.M. Keynes?
What is the meaning of J.M. Keynes in the concept of "investment multiplier"?
What measures of state regulation of the economy does J.M. Keynes?
What are the features of American and European trends in modern Keynesianism?
What is the essence of the neo-Keynesian theories of growth by E. Domar and R. Harrod?
What are the current assessments of the ideas of neo-Keynesianism?
Blaug M. Economic thought in retrospect. M .: Delo Ltd, 1994.
Braginsky SV., Pevzner Ya.A. Political economy: controversial problems, ways of renewal. M .: Thought, 1991.
Galbraith JK Economic theories and goals of society. M .: Progress,
Keynes J.M. General theory of employment, interest and money // Anthology of economic classics. M .: Ekonov, 1993.Vol. 2.
Keynes J.M. Economic implications Treaty of Versailles. M.-L., 1924.
Keynesian classics (R. Harrod, E. Hansen). In 2 volumes. M .: Economics,
Kondratyev N.D. Fav. Op. M .: Economics, 1993.
Leontiev V.V. Economic essays. Theory, Research, Facts and Politics. M .: Politizdat, 1990.
Nosova OS. Ways of overcoming the economic crisis: multiplier-accelerator models. M .: Publishing house Ros. econom. acad., 1993.
Samuelson P. Economics. In 2 volumes.M .: Algon, 1992.
Seligmen B. The main currents of modern economic thought. M .:
Progress, 1968.
Stiglitz J.Yu. Alternative approaches to macroeconomics: methodological problems and neo-Keynesianism // World economy and international relations. 1997. No. 5, 6, 7.
Howard K., Zhuravleva G. Principles of the economy of a free market system (economy). M .: Zlatoust, 1995.
Shonyu P. Economic history: evolution and prospects // THESIS. Winter 1993. T. I. Iss. 1.
. N. developed in the first half of the 1950's. under the influence of the deepening general crisis of capitalism (See General crisis of capitalism) a and the associated process of transition from monopoly to state-monopoly capitalism (see State-monopoly capitalism), scientific and technological revolution, economic competition two world systems and the collapse of the colonial system of imperialism. In the new historical conditions, when the problem of economic growth rates began to be considered as a matter of the life and death of capitalism, N. could no longer, like the theory of J.M. Keynes, but confine itself to considering mainly the so-called anti-crisis problems. economic policy... Therefore, N. focuses attention on the quantitative dependencies of expanded capitalist reproduction or, in the terminology of I., on the problems of economic dynamics and economic growth, acting as the most important theoretical basis economic policy of state-monopoly capitalism. N. proceeds from the main premise of Keynesianism that capitalism has lost the spontaneous mechanism for restoring economic equilibrium and the necessity for this reason of state regulation of the capitalist economy. The peculiarity of N. in this respect is that, reflecting a more mature stage in the development of state-monopoly capitalism, it advocates a systematic and direct, rather than sporadic and indirect, as in Keynes's theory, the impact of the bourgeois state on the capitalist economy. For the same reason, the main problematics of the bourgeois concept of state regulation of the economy changed - a transition was made from the so-called theory of employment, focused on anti-crisis regulation of the economy, to economic growth theories (see Economic growth theory) , aiming to find ways to ensure a sustainable economic development capitalist system. N.'s methodology is characterized by a macroeconomic, national economic approach to the consideration of problems of reproduction, by the use of so-called aggregate categories (national income, total social product , aggregate supply and demand, aggregate investment, etc.), allowing, on the one hand, to capture some of the most general quantitative dependencies of the process of capitalist reproduction, and on the other, to avoid considering its class essence and antagonistic nature. Like Keynesianism, N. focuses primarily on the concrete economic quantitative dependencies of the simple labor process in its national economic aspect, abstracting, as a rule, from capitalist production relations or treating them in a vulgar apologetic plane. Under the conditions of the scientific and technological revolution, N. is forced to abandon the abstraction characteristic of Keynesianism from changes in the productive forces of bourgeois society and to introduce indicators of the development of technology into his analysis. Thus, R. Harrod developed the concept of the “capital ratio”, which he interpreted as the ratio of the total amount of capital used to the national income for a certain period of time, that is, as a kind of indicator of the “capital intensity” of a unit of national income. At the same time, N. raises the question of the types of technical progress, highlighting, on the one hand, technical progress that leads to the economy of living labor, and on the other, that which ensures the economy of materialized labor in the means of production (in N.'s terminology, capital) ... "Neutral" technical progress, considered as a typical phenomenon, is a type of technological development in which the tendencies to save labor and to save capital are balanced, so that the quantitative ratio of labor and capital does not change, therefore, the organic composition of capital does not change. Meanwhile, the analysis shows that with all the contradictory nature of the factors affecting the dynamics of the organic structure of capital, its main tendency under the conditions of the modern scientific and technological revolution is the tendency towards growth. Complementing Keynes's theory of reproduction, including his theory of the Multiplier a , N. put forward the theory Accelerator a. Based on the combination of these theories, N. interprets the expansion of capitalist reproduction not as a socio-economic, but as a technical and economic process. N.'s supporters have developed specific formulas for extended capitalist reproduction, the so-called model of economic growth, in which, as a rule, the aggregate movement is not represented. component parts of the entire social product and capital, considered from the point of view of their natural-material and value structure. Normally, N.'s economic growth models capture only individual quantitative interrelationships of the reproduction process, primarily in its concrete economic aspect. The neo-Keynesian concept of "economic growth" (boosting investment in scientific research, new technology, infrastructure using government funding measures for the structural restructuring of the economy, etc.) runs into the limited purpose of capitalist production, the policy pursued by state-monopoly capitalism of limiting, and sometimes even reducing the living standards of the working masses (for example, the policy of "freezing" wages, the growth of taxes on workers' income; government regulation prices, leading to an increase in high prices, etc.). For this reason, neo-Keynesian measures of economic regulation did not and cannot rid capitalism of its inherent contradictions. Moreover, the policy of "economic growth" led to deficit financing of the economy, inflation, exacerbation of the trade war between capitalist countries, currency crisis, destruction environment etc.Lit .: Harrod RF, To the theory of economic dynamics, trans. from English., M., 1959; Hansen E., Economic Cycles and national income, per. from English., M., 1959; Tinberkhen J., Bose H., Mathematical Models of Economic Growth, trans. from English, M., 1967; Osadchaya I. M., Modern Keynesianism, M., 1971; Bourgeois economic theories and economic policy of the imperialist countries, otv. ed. A.G. Mileikovsky, M., 1971.
V.S. Afanasyev.
Great Soviet Encyclopedia. - M .: Soviet encyclopedia. 1969-1978 .
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Neo-Keynesianism - originated in post-war years economic doctrine, designed to revive the theory of John Maynard Keynes in the new economic conditions.
Keynes's theory, which arose during the Great Depression and the general economic recession, was intended primarily to solve short-term problems, moreover, the problems of a single country - Great Britain.
As the post-war critics of Keynes said, his teaching was static and did not affect the development of the economy for many years and decades. Keynes's theory proposed to deal with economic crisis not on the supply side, but on the demand side.
The scientist noted that it is the drop in demand that is the beginning of the economic collapse:
- Falling consumer demand leads to a decrease in production;
- A decrease in production leads to the dismissal of workers in large enterprises and to the ruin of small producers, and hence to mass unemployment;
- Unemployment leads to a lack of money among the population, and this is the reason for a further drop in demand.
This chain forms an insoluble problem that can only be corrected from the outside. Keynes proposed to cope with the crisis by means of fiscal injections of public funds: the state places large orders on enterprises, this leads to the employment of workers, they receive wages and can afford to purchase goods and services.
Before the Second World War, this system proved to be quite successful. However, after the war, problems arose that were difficult to eliminate within the framework of traditional Keynesianism. The economy was spurred on by military spending, but no economic growth was observed. The economy kept afloat in a state of poverty.
Several economists proposed a solution to this problem at once, the most successful was the system developed by John Hicks. His theory was that the state should conduct fiscal policy depending on the presence of unemployment and inflation.
Full employment, observed in the post-war years, was the cause of inflation, therefore, the state in such a situation should reduce budget expenditures(then the value of money will increase). And in a period of high unemployment and a shortage of money, the state, on the contrary, should increase budget spending. All these measures will help to achieve a balance between inflation and unemployment.
What led to the emergence of neo-Keynesianism?
Of course, renewed Keynesianism did not appear by itself. It was a response to a number of external events in politics, economics and science:
- After the war, the problem of competition between capitalist and socialist countries became urgent. Communist propagandists pointed out that the capitalist system is an endless series of crises, unemployment and growing inequality between the poor and the rich, that is, between workers and business owners. They predicted the collapse of capitalism in the near future. Keynes's doctrine understood the problems indicated by the communists, but proposed to solve them within the framework of the capitalist system.
- On the other hand, supporters of the neoclassical school raised their heads, who considered state intervention in the economy unnecessary and harmful. New Keynesianism was designed to take into account the criticism of neoclassicists and make government intervention flexible: the government should not interfere with the laws of the market, but must only correct its development; the rights and freedoms of producers and buyers should not be violated.
"New Keynesianism"
During the fifties and sixties, the developed Western countries developed precisely in the key of neo-Keynesianism. However, the events in the world economy in the seventies, which caused a new crisis, shook the positions of the established doctrine. The staunch supporters of Keynes' legacy had to adjust their theory to the new conditions. This is how another wave of economists of this school appeared, which began to call itself "new Keynesianism." The neo-Keynesianism of the 50s-60s has come to be called "old Keynesianism."
