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John Maynard Keynes
According to the theory, government spending can be used to increase aggregate demand, thus increasing economic activity, reducing unemployment and deflation. For example, when the unemployment rate is very high, a government can use a dose of expansionary monetary policy. The Keynes theory says, that government should support borrowers and to give them low rates of interest. It means that each in a specific sector invested euro will directly and indirectly promoting other industries development. For example: One new work in the construction industry will create the demand for 3—4 jobs for construction services sectors.
Of course economic isn’t anything simple, there is a lot of things, which can influence economic and policy. So, the right answer how to make our life better doesn’t exist. Adjustment economic result is rarely a predictable. Economy is too difficult system, and to manage it you should have not just a good knowledge’s and a lot of experience, but also a seriously political volition.
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