Economics Asked on March 4, 2021
Keynesian economics is defined as:
increased government expenditures and lower taxes to stimulate demand and pull the global economy out of the depression.
Do all modern economies adopt a Keynesian fiscal stance during significant economic downturns? Or have some demonstrated that they will not increase government spending at all during downturns?
Notes:
To make the question less ambiguous, please assume a country is ‘Keynesian’ if government spending was intentionally increased by at least 2.5% during a downturn of at least 1% at any point in the last 50 years (and ‘somewhat Keynesian’ if government spending increased by 1.5% during a downturn of at least 1%).
Example: According to this, Australia would be ‘Keynesian’, since it increased spending by 4% in response to a 1.6% downturn in 2008/9.
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