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AS and A2 Macro Revision: Keynesian Economics

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Keynesian thought has been given renewed prominence in recent years with the Global Financial Crisis, deep recessions in many countries and a remarkable monetary and fiscal policy response across continents. An understanding of some key Keynesian themes can be helpful in evaluating macro policies and the search for macro stability and better economic outcomes. Crucially Keynesian economics focuses on psychology, uncertainty and expectations in driving macroeconomic decisions and behaviour. Animal spirits are vital.

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