Abstract
This paper explains that basic Keynesian theory states that, "in a normal economy," there is a high level of employment, and everyone is spending salaries as usual, which means there is a circular flow of money in the economy. The author points out that, according to Keynes, if stock market prices rose sharply, this would be an indication that the economy was looking up and that consumers were willing to spend more. The paper responds that, if Congress passes an increase in income tax rates to take effect next year, according to Keynes, the effects of this measure should be salutary, if the increased funds are accrued by the federal government and utilized properly to create jobs by expanding the government programs of public works.

Table of Contents
Overview of Keynesian Theory and the Current U.S Economic Situation
Hypothetical Occurrence 1#: The stock market prices rise sharply.
Hypothetical Occurrence 2#: The Conference Board's Index of Consumer Confidence falls for the fifth straight month.
Hypothetical Occurrence 3#: The rate of capacity utilization rises.
Hypothetical Occurrence 4#: The government institutes a 10% investment tax credit retroactive to the start of the year.
Hypothetical Occurrence 5#: Congress passes an increase in income tax rates to take effect next year.

From the Paper
"Keynes stated that "in a normal economy," there is a high level of employment, and everyone is spending salaries as usual. This means there is a circular flow of money in the economy. Individual spending becomes part of total earnings. Total earnings become part of the total spending, generating profits. When something happens to shake consumer confidence in the economy, consumers begin to save their money. Because consumer spending is part of other consumer's earnings, consumer's decisions to hoard money cause retailers to spend less and to lay off employees. Responding to these difficult times, "other consumers resort to hoarding money as well." "

Tags:flow, tax, stock, confidence, utilization

Abstract
This paper explores the evolution of Keynesian theory within economics from the initial model to Post Keynesians. The use of money, employment and interest rates are used to chart these changes.

Abstract
This paper examines Keynesian Theory and government spending, discusses the stimulus packages presented by the Bush Administration, and evaluates the results the administration's supply side approach will have on the economy.

Abstract
This paper discusses the environment which gave way to the birth of the Keynesian theory. Moreover it discusses the differences between the classical theory and the Keynesian one. The paper ends by narrating the Keynesian explanation of the Great Depression and the accompanying solution

From the Paper
"The New Deal, instituted by President Franklin D. Roosevelt in 1933, and conventionally dated as having continued until the outbreak of the European war in 1939, marked an epochal change in American domestic policy and in the role of the Federal government in American life. It also marked a major transition in Western economic thought. Until the New Deal era, the range of economic choices available was starkly simple: classical orthodoxy or Marxism. For policymakers in Western countries, that was effectively no choice at all, so for practical purposes classical laissez-faire economics reigned supreme. Government was admitted to no major role in economic life. "

Tags:ECONOMICS: MACROECONOMICS

Abstract
The paper discusses the theories of John Maynard Keynes who is known as the "father of modern economics". He was the first economist who precisely described some of the causes and cures for recessions and depressions. The paper explores some of the effects his theories had on the Great Depression such as the Employment Act and the Council of Economic Advisors. It also shows the effects of his theories on World War II and provides a time-line for the Great Depression.

From the Paper
"Thus, according to Keynes, the solution that he bought through his theory was for the government to goose up its spending in any way it can either by printing money, cutting taxes, or increasing spending itself. He believed in supply and demand, which was an indirect way to let the economy balance itself. In his theory he not only convinced that in order to work for this system to work people needed money, which could only be done by creating jobs. He further believed that in order to reduce unemployment the government needed to increase the total demand, which is the total amount of goods being demanded. "

Tags:United, States, Federal, Reserve, Gold, Standard

Abstract
This paper explains that Keynesian economics would not be so optimistic regarding Bush's dividend tax cut proposal primarily because of their assumption that investment spending is driven more by expectations of future profits that are difficult to forecast. The author believes that the Bush tax plan essentially agrees with Keynes regarding the important role of consumer demand in stimulating the economy. The paper points out that Keynes and Bush radically differ on which category of consumers should receive the benefits of the tax cut: Bush is clearly placing more money in the hands of the wealthy.

From the Paper
"Keynes disagreed with supply-side methods for promoting vast degrees of income inequality. Instead, shifting income from high savers to high spenders, Keynes argued, would increase investment since firms would have more reason to add increased production capacity. Keynesians advocate using "automatic stabilizers" to counteract alleged instability in the economy. Keynesians argue that progressive income taxes and welfare payments counter variations in aggregate demand. Progressive income taxes and Welfare transfer income from upper income households to lower income households. Since upper income households save more of their income and low-income households consume more of their income, these practices keep aggregate saving low and aggregate consumption high."

Tags:dividend, investment, forecast, consumer, inequality

Abstract
This paper explains that the old Keynesians and the new Keynesians of the 1990s presume that both prices and wages tend to be stringent over a short period; as a result, the amount or the quantity of output begins to adjust itself according to the changes observed in the aggregate demand. The author points out that the major reason for the split in thought is the fact that John Maynard Keynes left his analysis of the "General Theory of Unemployment" incomplete. The paper relates that both groups have discussed and explained the saving mechanism and its impact; but, where old Keynesians evidently opposed saving, the new Keynesians gave many pro saving statements.

From the Paper
"Mankiw, the leader of the new Keynesians, explains and makes use of the fundamental tools involved in the Keynes general theory including IS and LM curves, aggregate supply and aggregate demand, and the multiplier and accelerator. However, unlike the old Keynesians, Mankiw, his subordinates and colleagues sought benefit of the economy in the saving approach. Where old Keynesians saw a marked decrease in the output levels due to savings, Mankiw claimed and showed how saving at a high rate can cause the output levels to soar. Making use of the "Solow growth model", Mankiw explained and established a clear link between saving phenomenon and higher levels of output as well as the resultant "steady-state capital stock" in the following words: "the saving rate is a key determinant of the steady-state capital stock."

Tags:price, wate, theory, incomplete, saving

Abstract
This paper examines the definition and history of Keynesian economics. The paper identifies the six ideas essential to Keynesian economics as well as the tenets of the New Keynesian school of thought. The paper applies these theories to the current economic crisis to better understand both the problem and the government's proposed solutions. The paper shows how the problem facing the administration is that it has not staunched the job losses, primarily because it appears as though one of the conditions required for Keynesian theory to hold true - that of government actually being able to exert influence - is not holding this time. The paper concludes that it does not invalidate Keynesian or New Keynesian theory, but it calls into question the universality of its application to solve our domestic economic issues.

Outline:
Introduction
Keynesian Theory - History and Definition
New Keynesian Thought
The Economic Crisis
Conclusion

From the Paper
"Keynes' theories diffused throughout economic and political circles rapidly, because they resonated with a world caught in the depths of the Great Depression. The world economic under the laissez-faire system had collapsed, highlighting deficiencies in that philosophy. The New Deal had begun to turn the US economy around - if not unemployment. While there is considerable debate as to the role the New Deal played in the turnaround, if the role was positive at all, observers at the time certainly felt that the government spending contributed to stabilizing and restoring the American economy. Thus, Keynesian economics fit well with the perception of economic events at the time. In periods of economic downturn, government spending could improve aggregate demand."

Tags:unemployment, aggregate, demand, spending, supply, wages, prices

Abstract
This paper discusses how prior to the Keynesian revolution, many economists and politicians viewed economics from a "micro" perspective. They saw factors such as unemployment, interest rates, profit and loss as related to individual organizations and the impact of individual transactions. It looks at how in modern times, the idea of macroeconomics is much more widespread and the impact of economic endeavors is viewed as part of an economic whole, or national/global approach. It analyzes how part of the credit for this much more diverse and broad view is due to the efforts of John Maynard Keynes, through his publications and the "Keynesian Revolution." It shows how John Maynard Keynes was a pioneer of his time, revolutionizing economic thought and introducing the idea of macroeconomics.

Outline
Introduction
History of Economic Theory
The Keynesian Revolution: A Turning Point
Key Concepts Related to Keynesian Theory
General Ideas Related to Economic Theory
Criticisms of Keynesian Theory
Responses to Criticisms
The Keynesian Revolution Revisited
The Significance of the Revolution
Analysis and Summary of Keynesian Revolution and Criticisms of John Maynard Keynes Model for Economy

From the Paper
"Keynes felt that unemployment was instead caused by a lack of demand for a particular production or services, rather than imbalance within the labor market. This makes perfect sense to modern day economic theorists, but was a huge leap at the time proposed.
Keynes argued also that there was no reason for recessions and depressions to occur. Keynes assesses that prevention of a decline in the economy relied on maintaining a balance of income and expenditures. Critics during the 1930's still felt adamantly that unemployment could only be explained by wage rates.
Some political theorists and economists such as Friedman and like- minded economists, argued that increasing demand for productions and services would only affect employment if the wage rates fell in accordance with falling prices. Others such as David Lilien argued that "sectoral shifts" accounted for half of cyclical unemployment that were have been thought to be caused by shifts in demand (Galbraith)."

Tags:economy, macroeconomics, unemployment, interest, rates