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Unformatted text preview: Keynesianism • Two assertions for development economics o 1. Economic cycle, recessions are cyclical o 2. When period of recession, owners of capital will not want to invest the capital they have insecurities deters investment • Proposes State Intervention with Capital and Reducing Interest Rates o Capital Investment Promotes Labor o Reduce Interest Rates Money Supply Increases Promotes Investment • In the Third World Paradigm o People don’t have capital do let the state invest into modern industry State acts as a proxy for lack of investors • Keynesianism is a precursor to modernization...
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- Winter '11
- money supply increases, liberal economics, insecurities deters investment, 20TH CENTURY EXPLANATIONS