Keynesian school of Macroeconomic

Keynesian school of Macroeconomic thought appeals to me the most. Therefore, it is required to outline its main thought processs related to monetary and fiscal policy. It is important to spang that this theory is based on ideas of famous British economist butt Keynes and it is rooted in the 20th century. Keynesian thrift claims that mixed economy is the best type of managing fiscal and monetary policies, where special attention is compensable to backstage sector and state. Keynesians doesnt think that both state and private sector should operate on their own and, thitherfore, their policy differs significantly from individuation economy. Such idea is the most appealing to me, because I think that every(prenominal) sector should be under thorough control. (Blinder 2003)The next moment to raise is that Keynesians believe macro-level trends are able to dominate over the micro-level of individual behavior. In contrast to classical theory, Keynesians promote an idea that aggrega te demand for genuine is of great importance in economy and is its main driving force. discourse about fiscal and monetary policies, Keynesians aim at raising providence in order to lower the demand for labor and products. For example, they stated that there were many ways for the political science to ensure effective management of case economy.Instead of paying attention to delirious budgets, Keynesian theory suggests countercyclical fiscal policies, which acted against the soar upwards of the business cycle deficit spending when a nations economy suffers from recession or when recovery is long-delayed and unemployment is persistently high. (Blinder 2003) Therefore, the government should solve short-term problems. Also Keynesians think that fiscal stimulus or deficit spending may actuate production. Rather interesting idea is that government should be complementary. And fiscal expansion is possible only in case of slack in labor market.However, Keynesian theory is criticized because of unbalanced view of monetary policy. For example, it is suggested that their approach to economy is rather collectivist which requires modify planning and, in such a way, it may lead to undemocratic abuses. Keynesians are more concerned with considerations instead of executing. (Blinder 2003)ReferencesBlinder, Alan. (2003). Keynesian Economics. Retrieved February 15, 2007, from http//www.econlib.org/library/Enc/KeynesianEconomics.html