Question

what are the main differences between keynesian and Post- keynesian approaches to investment
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Answer 1

Answer:

Keynesian

One point of departure from classical Keynesian theory was that it did not see the market as possessing the capacity to restore itself to equilibrium naturally. For this reason, state regulations were imposed on the capitalist economy. Classic Keynesian theory only proposes sporadic and indirect state intervention.

Neo-Keynesian

Just as Keynes posited his theory in response to gaps in classical economic analysis, Neo-Keynesianism derives from observed differences between Keynes's theoretical postulations and real economic phenomena. The Neo-Keynesian theory was articulated and developed mainly in the U.S. during the post-war period. Neo-Keynesians did not place as heavy an emphasis on the concept of full employment but instead focused on economic growth and stability.

Answer 2

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