Is mainstream Western economics Keynesian economics 5

Keynesianism is low liberal, high welfare, represented for the Nordic countries, which can be heavily taxed on the rich, and the singers of the United Kingdom have a 90% personal income tax (Khan one). And liberal economics is high in freedom and low in welfare, which represents the United States, (Obama is going to go down against the plutocrats, but that might be a slogan.) Light taxes on the rich.

China is low in freedom and low welfare, so low wages, no housing, no medical care, so that we can rob the vast number of middle-class jobs in the WTO, knock down the world's trade unions, and achieve our GDP and modernization. High taxes (of capital accumulation) are not responsible for building roads, not responsible for medical care, and raising a group of people who let poisoned milk powder spread everywhere.

Conclusion! Both Keynesianism and liberalism are moving closer to China and learning from it. Learn to let the horses run without eating grass and have the right to fish together. I don't know if they can do it, the Chinese are so oppressive and have to do this, they?

Not entirely, but Keynesianism is a big part of it!

New Keynesianism is basically the mainstream of Western macroeconomics right now, but note that it's New Keynes.

Advocating participation in economic management However, in Keynesian theory, it seems that inflation and unemployment cannot coexist.

Thus it has been greatly challenged.

Not Keynes was only part of it.

Keynes didn't make up a big part either

Keynesianism, or Keynesian economics, is an economic theory based on Keynes's general theory of employment, interest and money (Keynes, 1936), which advocates the adoption of expansionary economic policies by the state to promote economic growth by increasing demand.

Keynes's economic theory held that macroeconomic trends would 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 economic recession.

From this point of view, he argues 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.

Similarities: Keynes and Friedman's theories of the demand for money both treat money as an asset, rather than merely as a pure trading instrument with no intrinsic value. Both Keynes and monetarism recognized the role of national income in influencing the demand for money.

Friedman sees the indirect benefits of holding money as the benefits and ease of trading, which is similar to Keynes's "liquidity preference".

Differences: 1In Keynes's money demand function, the interest rate is limited to the bond interest rate, and the income is the real income level at the spot.

In Friedman's money demand function, the interest rate includes various functions such as the rate of return, and the closing of the leg is the permanent income, which is the main factor determining the demand for money. 2.Keynes's money demand function is based on the liquidity preference of interest rates, and believes that interest rates are an important factor in determining the demand for money.

Friedman, on the other hand, argues that the interest rate elasticity of money demand is low and that money demand is not sensitive to elasticity. 3.Keynes said that the velocity of money is unstable as a function of money demand.

Keynes, on the other hand, believed that the velocity of money and the function of money demand were highly stable. 4.According to the Keynesian theory of money demand, people's motivations for holding money can be divided into transactional motives, preventive motives and speculative motives. It is the level of income that determines the motivation for trading and the motivation for prevention, and the level of interest rates that determines the motivation for speculation.

In the short run, the stability of income determines that changes in money demand are mainly influenced by interest rates. Frequent changes in interest rates determine the instability of money demand. Monetarism, on the other hand, holds that the main factor that determines the demand for money is permanent income.

Because permanent income refers to people's normal income in the long-term balance, the stability of this income determines the stability of the demand for money in the long run.

1. The proposition is different.

Cairnism advocated active intervention in the economy.

Classical macroeconomics advocates not intervening in the friendly economy and allowing it to develop.

2. Different for failure.

Keynesianism is aimed at short-term economic activity.

Classical macroeconomics deals with long-term, but short-term economic activity is also involved.

3. Different directions.

Keynesianism holds that changes in the quantity of consumption lead to changes in the economy.

Classical macro-economics holds that the amount of production affects the economy.