|Mause I 56f
Economic policies/Keynes: Thesis: Money supply and price levels have an impact on the level of real wages and thus on the extent of employment as a result of nominal wage rigidity. Since market economies are not necessarily stable, but could well lead to shortfalls in demand and economic slumps, the state must pursue active macroeconomic control - above all in the form of anti-cyclical fiscal policy. In doing so, the state had to vary its expenditures in opposite directions to the development of private demand and thus maintain overall demand at the level necessary for full employment. In order to pursue anti-cyclical fiscal policy as effectively as possible, the state should and is allowed to finance necessary additional expenditures also through debt ("deficit spending"). (1)
1. Cf. J. M. Keynes, The general theory of employment, interest and money. London 1936._____________Explanation of symbols: Roman numerals indicate the source, arabic numerals indicate the page number. The corresponding books are indicated on the right hand side. ((s)…): Comment by the sender of the contribution. The note [Author1]Vs[Author2] or [Author]Vs[term] is an addition from the Dictionary of Arguments. If a German edition is specified, the page numbers refer to this edition.
John Maynard Keynes
The Economic Consequences of the Peace New York 1920
Politik und Wirtschaft: Ein integratives Kompendium Wiesbaden 2018