How To Get Unlimited Gold On Mechquest

Sometimes seizures return, the recipe and the birth of Keynesian policies.

Depression of the '30s led to a period of great uncertainty in world economies. Confidence in the market sing praises from neoclassical theories was accusing a blow to the heart of the system. On the other hand, socialism had found his first appearance by the Russian Revolution and the centrally planned economy. The Western response could not be done using the same cultural baggage of the past nor depart from it too. With the crisis of '29 capitalism had gone up in the dock of history.
Keynes's theory was chosen as the official response to the states of Western economic theory of crisis and depression. For the first time spread the belief in a system Economic hit by periodic crises. The economic recessions alternated with those of depression, the economy could not, therefore, to ensure full employment. According to Keynes the system found its impasse in the investment industry. The price of bonds is inversely related to money market interest: P = V / i
short-term investments were consistent. Individuals could use their savings mainly by buying securities. In the situation where interest rates are low investors begin to expect a future rise in interest rates and lower bond prices. Will therefore tend not to buy new titles and holding money. The preference liquidity throws the system into a long depression, the phenomenon is also called "liquidity trap".
As mentioned earlier, Keynes took a little variable and constant investment in the short term. The savings were therefore subject to stable equilibrium of underemployment to exit from which it was necessary for public intervention to boost demand. She was born the 'Keynesian policy' and the lever of public spending became a sort of panacea to the ills of economic depression and underemployment of resources.