Ideas of keinsian theory of economic growth

Vydobora Volodymyr
PhD in Economics, Associate Professor, General Economic Theory and Economic Policy Department, Odessa National Economic University, Odesa, E-mail: vidoboravolodimir@gmail.com, ORCID ID: https://orcid.org/0000-0003-2255-0970

Cite this article:

Vydobora V. (2022) Ideas of keinsian theory of economic growth. Ed.: V.V. Kovalenko (ed.-in-ch.) and others [Ideyi kejnsianskoyi teoriyi ekonomichnogo zrostannya; za red.: V.V. Kovalenko (gol. red.)], Scientific Bulletin of the Odessa National Economic University (ISSN 2313-4569), Odessa National Economics University, Odessa, No. 1-2 (290-291), pp. 34-42.

Abstract

The purpose of the article is to study the foundations of economic growth in Keynesian theory. In the researching general scientific and special methods are used, such as: deductions and inductions, analysis and synthesis, generalization, historicalgenetic, convergence from abstract to concrete. The key postulates of the Keynesian theory of economic growth are analyzed based on theoretical. It was found that the Keynesian theory of economic growth is based on overcoming the economic crisis by stimulating aggregate demand (personal consumption and investment) by the state through industrial policy, active support of entrepreneurs, the financial sector and employment, for example, by increasing personal consumption by reducing the savings of private households, increasing investment costs of industrial producers, government spending. An important place in stimulating aggregate demand is given to the state, because the modern market economy is imperfect and can’t ensure sustainable development at the level of full employment. Accordingly, it was found, that the state is given the role of stabilizer of the economy through countercyclical fiscal policy measures and increased government spending. The evolution of Keynesian theory of growth from classical to modern Keynesianism is studied and the change of J. M. Keynes’ ideas in scientific researches of his followers is analyzed. The Keynesian model of economic growth to meet the real conditions of economic life was modified by taking into account the mechanism of cyclical fluctuations, changes in the sectoral structure of production and accumulation of resources, the impact of scientific and technological progress, analysis and specific statistics. The practical significance of research lies in the theoretical justification of the relevance of Keynesian concepts in the regulation of modern economic processes. In particular, the mechanisms of state regulation of the market economy, which should guarantee the support of the business sector and stimulate consumption in order to strengthen reproduction processes, deserve attention. That’s why, in modern geo-economics conditions, given the presence of global economic changes, the Keynesian concept can be transformed in the context of planned-indicative anti-crisis model, which can be applied in global crisis economic post-pandemic processes, which is the prospect of further research.

Keywords

economic growth, Keynesian economics, economic crisis, state regulation, employment, fiscal policy, industrial policy.

JEL classification: N100, O400; DOI: 10.32680/2409-9260-2022-1-2-290-291-34-42

UD classification: 330.34

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