23-th topic. Keynesianism - extension

The Keynesian approach that significantly contributed to economic theory:

§  Firstly had argued on the more conceptual platform;

§  By the way of arguing the need of economy for regulation in the macro and micro levels he showed that, the economic system is oriented to recession because of irrationality of behaviors;

§  Showed that, to achieve sustainable economic growth and development the economic system needs for impulses, and from this point of view the processes should be taken under the control.

§  Showed that, the most rational regulation mechanisms belongs to government and government should direct the recession trends of the economic system to stability and development trends, using these two main policy components – fiscal and monetary regulations;

§  Showed that, the behaviors of the business sector effects to general equilibrium issues in the macro and micro levels;

§  Argued the necessity of correcting the behaviors of business sector by the government in the goods and services’ market and financial market, of which money market.

Generally, Keynesiansm had presented the regulation “prescription” that by using this the management of economy in the period of recessions is possible. However, this approach is similar with “treatment” of disease in the “embryo” of econmic system in the late level.

Bu origin, current ecenomic systems mainly needs for prudential “prescriptions” against recession.

That is, to be naturally oriented to stability and development, instead of recession current economic systems should be armed with the etics of rational behaviors.

Aghanemat Aghayev