Can it Solve the Economic Recession?
Keynesian Economics was proclaimed the “new economics” in those days. Keynes economic innovation was a direct contrast to the prevailing economic school of thought at that time, better known as Classical Economics. Classical economists believed in “free market enterprise”. Keynes argued that classical economics brings so much instability and cannot solve an economic crisis. Keynes insisted that the “free market” philosophy has no “built-in mechanism” to assure full employment. Keynes gained so much international reputation that the United States adopted his economic policies and since then became the economic “bible” from the mid-1930s to the 1970s. His influence was so strong that universities around the world, especially in the US, consider it as the orthodox dogma in economics. Keynes prescription to prevent an economic recession was accepted easily because the classical economics cannot give an alternative antidote to stop an economic depression. Classical economists view the econo
