Keynesian Economics
Keynesian economics is a macroeconomic theory developed by John Maynard Keynes that emphasizes the role of aggregate demand in driving economic output and employment, particularly during recessions. It advocates for active government intervention through fiscal policy (e.g., spending and taxation) and monetary policy to stabilize economic cycles and mitigate downturns. The theory challenges classical economics by arguing that markets do not always self-correct quickly, leading to prolonged periods of high unemployment.
Developers should learn Keynesian economics to understand macroeconomic contexts that influence business decisions, funding cycles, and public policy affecting tech industries, especially during economic crises. It is relevant for roles in fintech, economic modeling, or policy analysis where insights into government stimulus, interest rates, and demand management are valuable. Knowledge of this concept helps in anticipating market trends and advising on strategic investments in technology sectors.