Let s try to describe the basic content of Keynes s theory

Keynesianism argues that the spontaneous market mechanism of converting savings into investment through interest rates and regulating the supply and demand of labor with the help of changes in wages does not automatically create the level of effective demand required for full employment; In the competitive private system, the "three psychological laws" make the effective demand often lower than the aggregate supply level of the society, resulting in the employment level always in an equilibrium state of underemployment.

The spontaneous market mechanism of converting savings into investment through interest rates and regulating the supply and demand of labour with the help of changes in wages does not automatically create the level of effective demand required for full employment.

The main argument is that the state should adopt an expansionary economic policy to promote economic growth by increasing demand. Keynes's economic theory suggests that macroeconomic trends will constrain the specific behavior of individuals. "Political economy" or "economics" since the late 18th century has been based on the continuous development of production to increase economic output, while Keynes believed that the decline in aggregate demand for goods was the main cause of the recession.

The Evolution of Keynesianism.

New Keynesian economics emerged in the 80s, and its policy ideas flourished in the 90s. Most of its representatives are American economists, such as Q A Akeroff, J Yellen, G Manque, B Bernack and others. New Keynesian economics adheres to the idea of intervention in the economy, but it absorbs the rational expectations view of the rational expectations school and the view that "expected macroeconomic policies are ineffective".

1. Keynesian economics, or Keynesian economics, is an economic theory based on Keynes's work "General Theory of Employment, Interest and Money" (Keynes, 1936), which advocates that the state adopt an expansionary economic policy to promote economic growth by increasing demand.

2. Keynes's economic theory holds that macroeconomic trends will constrain the specific behavior of individuals. "Political economy" or "economics" since the late 18th century has been based on the continuous development of production to increase economic output, while Keynes believed that the decline in aggregate demand for goods was the main cause of the recession.

3. From this point of view, he believes that measures to maintain the balance of overall economic activity data can balance supply and demand at the macro level. As a result, Keynes's and other economic theories based on Keynes's theory are called macroeconomics to distinguish them from microeconomics, which focuses on the study of individual behavior.

4. The main conclusion of Keynes's economic theory is that there is no strong automatic mechanism for the development of production and employment in the direction of full employment in the economy. This is in contrast to the so-called Say's law in neoclassical economics, which holds that the automatic adjustment of the interest rate tends to create full employment.

5. The attempt to link macroeconomics and microeconomics has become the most fruitful field of economic research since Keynes's General Theory, where microeconomists try to find the macro expression of their ideas on the one hand, and on the other hand, monetarist and Keynesian economists try to find a solid micro-foundation for Keynesian economic theory. After World War II, this trend developed into the neoclassical synthesis school.