Here is the synopsis of our sample research paper on “Comparison between the policies of Keynes and Friedman in terms of government intervention during economic recession”. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
A six page paper which looks at the differences between Keynesian economics and the policies of Milton Friedman in regard to the degree of government intervention which is productive in alleviating unemployment during periods of national recession.
Bibliography lists 5 sources.
Page Count:
6 pages (~225 words per page)
File: JL5_JLkeynesfried.doc
Buy This Term Paper »
Unformatted sample text from the term paper:
instability is that it is caused by the erratic nature of supply and demand and that recovery from recession is not something which may be achieved without direct government intervention.
This was, according to Keynes, best achieved by the governments increasing demand by way of taxation strategies and direct involvement in spending. As Carreira
(2001) points out, this is in contrast to Adam Smiths assertion that the public interest is best served when individuals do not intervene specifically in order to ameliorate economic fluctuations.
Friedman saw this policy as a justification and a prescription for extensive government intervention (Friedman, 1980, 63) which he considered to have a detrimental effect on the economy as a
whole. Keynes based his theories on the principle that there was a direct inverse relationship between unemployment and inflation, and that the two could
be balanced by deliberate intervention on the part of governments. This meant that the government would need to raise the inflation rate in times of recession; this could be achieved
by an increase in spending and a reduction of taxes. This, in turn, would lead to greater deficits and increase inflation. Consequently, there would
be greater demand and this would have the effect of lowering unemployment and reversing the progression of the recession. The debts which had been run up during the period of
higher spending could, once the recession was over, be repaid out of the higher taxes which would be imposed once the economy had recovered and interventionist spending reduced.
In the USA, these principles are enshrined in law, since the 1946 Employment Act obliges the government to act deliberately in order to guarantee full employment.
...