Keynesian economics
Named after economist John Maynard Keynes, who believed the best way to ensure economic growth and stability is via government intervention in the economy.
Named after economist John Maynard Keynes, who believed the best way to ensure economic growth and stability is via government intervention in the economy.
When times are good, a government should raise taxes and curb public spending to ensure the public finances are robust. As soon as times get harder, tax cuts to help those still in work should be accompanied by public spending on infrastructure projects, such as schools, road maintenance maybe even an Olympic village. That keeps people in work even as job losses hit the private sector. If people are kept in jobs they will keep on spending and borrowing, which in turn supports firms and reduces the impact of a recession. So the theory goes.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
![https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg](https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748-320-80.jpg)
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
Skipton launches a retirement bond with monthly income – is it any good?
The building society has launched a new three-year fixed-rate bond for those aged 66 and over. Can it boost your retirement income?
By Katie Williams Published
-
Pensions: 140,000 pensioners to be hit by surprise tax demand
Tens of thousands of pensioners will be written to over the summer because their pensions have gone above the frozen income tax thresholds
By Chris Newlands Published