A Comparative Study Of New Keynesianism And Keynesianism

Since the birth of Keynes' s economics,it has been supported by governments.The theory of the school repelled the great depression and brought prosperity to the West for 20 years.However,with the economic development,the drawbacks of Keynesianism have gradually revealed,and Keynesianism has not made effective suggestions in the "stagflation" period.Thus,Keynesianism has lost the status of mainstream schools.Since then,scholars who support government intervention have continuously improved Keynesian macroeconomics,trying to build a solid micro-foundation for them.Macroeconomics and microeconomics have begun to integrate and co-exist instead of conflicting with each other.August 2008,the global economy has entered a cycle of decline,because the American secondary mortgage crisis spread and became the financial crisis,from the virtual economy to the real economy,from the United States to Europe and Asia.In response to the global financial crisis,governments seized the successor of Keynesianism-New Keynesian economics,started to intervene market economy to help troubled financial institutions run out of the crisis.Many economic fluctuations confirmed that the market is indeed defective,if the government does not lend a helping hand,the economic development will not be healthy.Therefore,it is very important to study the theory of government intervention in the market.On this basis,this paper selects a comparison between new Keynesianism and Keynesianism as the research object,using the comparative study as the main analytical method to elaborate the two schools of economic theory.First of all,in order to find the assumptions of the school theory,the article combs the realistic background and theoretical sources of the two schools.Secondly,according to the representative theory of each school,the paper extracts the main economic thoughts of Keynesianism and New Keynesianism.Besides,the article revolves around the historical background,the research method,the research emphasis and the policy proposition as the breakthrough point,analyzes the similarities and differences between Keynesianism and New Keynesianism.Finally,in view of the existing problems in the real economy,the thesis refines the theoretical value and practical suggestions in the process of comparative analysis.The results show that the New Keynesianism and Keynesianism have saved the market economy in the crisis,and have a strong ability to solve practical economic problems,both economic theory have instructive significance for national economic policy.However,due to timeliness and dynamic development of the economic theory,the government,whereby the theory,has to make plan flexibly and creatively.Only when keeping the core,reality and innovation of the theory can improve productivity and promote economic development.