Historical background of keynesianism and its influence on modern principles of state regulation of the economy
Year: 2025
Type: article
Abstract: The purpose of the study is to identify the historical background of Keynesian economic theory and to determine its impact on modern concepts of state regulation of the economy implemented in the modern globalized world. Methodology. The study combines several methods of analysis to gain a deeper understanding of the evolution of Keynesian economic theory and its impact on modern economic practice, such as: the historical method, taking into account the main stages of its formation and changes, the comparative method, the case method – studying specific economic crises, such as the Great Depression, the 2008 financial crisis and the COVID-19 pandemic, to analyse the application of Keynesian principles in real life and assess their effectiveness in combating economic problems, and the modelling method to use economic models. Scientific novelty. The article analyzes the Keynesian economic theory in historical and modern contexts, examines the views of critics of Keynesian theory, assesses its adaptation to new economic conditions and practical application in economic management in the context of globalization and crises. Research results. It is proved that in today’s environment, when there are global economic crises, economic inequality and military conflicts, the study of Keynesian approaches, in particular fiscal and monetary incentives, which become the basis for economic policies of countries to overcome the consequences of global crises, becomes relevant. It is emphasized that Keynesianism has serious advantages in conditions of economic instability and in situations where markets cannot effectively rebalance on their own. It is determined that the provisions of Keynesianism regarding active government intervention in the economy, the use of fiscal and monetary policy to stabilize demand, fight unemployment and inflation are used by governments and central banks around the world.
Author: Y. V. Hlivinska
Institution: Kyiv National Linguistic University
Language: English
Topic: Economic Theory and Policy
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4411243429