ECONOMIC GROWTH BASED ON THE KEYNES THEORY

Abstract

This study aims to understand economic growth in the view of Keynes's theory. The grand theory used in this research is Keynes' theory. The method used is literature review. The results showed that Keynes explained that the government must intervene in controlling the national economy with active policies that affect the movement of the economy. Keynesian views are constantly being updated and developed by his supporters, both from the Neo-Keynesian and Post-Keynesian groups. The successors of Keynes' teachings contributed a lot in developing theories related to efforts to maintain economic stability. These theories explain and anticipate economic fluctuations (business cycle) and theories related to growth and income. It is necessary to note, the magnitude of Keynes's influence gave birth to a school called Keynesian, which is an integrated set of economic theories and policies originating from Keynes.