TheStar.com | Business | A Keynes insight into free markets - The Diigo Meta page

• 22 Dec 08
  

  Colin Henderson

  Keynes, who died in 1946, said market forces don't necessarily come into equilibrium on their own. In such circumstances, governments should increase spending to boost demand and help return the economy to full employment.
  
  That idea spread around the world in subsequent decades, said Smith, "and it came to be widely believed that one of the roles of government was to prevent business cycles and stabilize the economy as a whole, and that the government could do that in part by following what's sometimes called a counter-cyclical fiscal policy where they would spend more in recessions and less in booms."

  thestar keynes economics government intervention

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