Search

Keynesian Economic Thought and Its Modern Significance:A Case Study of the 2008 Global Financial Crisis

Author(s)

Xihan Sun

Affiliation(s)

China Foreign Affairs University, Beijing, China

Abstract

Against the backdrop of the 2008 global financial crisis, this paper explores Keynesian economic thought and its relevance today. In the context of classical economics' limitations, Keynes' theories on government intervention and effective demand management introduced new pathways for economic recovery, marking significant historical contributions. The crisis and the widespread use of Keynesian anti-crisis measures globally demonstrated the resurgence of Keynesianism and validated its effectiveness in addressing economic downturns. The paper emphasizes that, despite changes in times, Keynesianism remains invaluable for addressing both general and specific contemporary economic issues. Integrating Keynesian insights into today's economic climate enables sound and prudent government decision-making. Through an in-depth analysis of Keynesian economic thought, this paper not only provides a theoretical perspective for understanding modern economic crises but also offers policymakers a strategic reference for confronting future economic challenges.

Keywords

Keynesianism; Economic Crisis; Effective Demand; Government Intervention; Modern Significance

References

[1]Deng Pi. "Keynesianism and the Global Financial Crisis." Oriental Enterprise Culture. 07 (2012): 176-178. [2] Li Guojiang. "Reflections on Keynesian Economics: From the Perspective of the Global Financial Crisis." East China Economic Management. 25.10 (2011): 78-81. [3] Wang Mandа. "A Study on the Three Transformations of Liberalism Since the 20th Century." 2023. Inner Mongolia Normal University, MA thesis. doi:10.27230/d.cnki.gnmsu.2023.001185. [4] Wu Chunlei. "A Comparison of Marx's and Keynes's Macroeconomic Theories in the Context of Global Financial Crisis Governance." Guangxi Social Sciences. 11 (2012): 51-54.