IIPM Ranked No. 1 B-School In Global Exposre - Zee...
Some things are forever, and Keynes' theories fall in that category...
It’s not for the first time that the world is experiencing an economic turmoil or global meltdown. This phenomenon (or to be precise, recession) has affected almost all economies and financial institutions. What started with the US financial crisis has now engulfed almost all the countries of Europe and also Asian giants like Japan. Most of the economies are planning some or the other kind of bailout plan or stimulus package to get rid of this on-going recession. The most prominent steps were taken by big economies like the United States, Japan, European Union (EU) and China. To counter this recession, US launched a $700 billion bailout package, followed by Germany with a $29 billion stimulus package, Japan with a $275 billion package and China announcing a $600 billion stimulus package (the biggest package as percent of GDP).
Consider this: USA's bailout plan is aimed at providing its people with tax rebates ($600 to individuals and $1,200 to couples) and bailing out financial institutions / banks experiencing steep problems. Japan's stimulus package is designed to help and increase savings of small business and families. Germany has its own plan that includes tax breaks on purchase of cars, credit facilities to small and mid-size businesses and investment in infrastructural development. China framed its stimulus package aimed at increasing consumer spending, developing infrastructure and thus generating employment. All of the above plans look quite similar and the bottom line remains common in all the above mention cases i.e. to refurbish their respective economic growth. This is not a mere coincidence but an intelligently devised plan based on an age-old time tested theory. These stimulus packages are largely based on Keynesian theory (that advocates more of government spending, low interest rates, easy credit / money policy). Recently, G7 in Washington discussed a framework to tackle recession based on Keynes’ theories. And even the British bailout plan was largely devised on Keynes’ economic theory. A great economist in the 20th century, John Maynard Keynes in his book titled 'The General Theory of Employment, Interest, and Money", had already described such situations and given feasible solutions as well. His theory has also helped many big economies to come out of recession in the past as well. Keynes' theory helped the world in 1929 during the Great Depression (US President Roosevelt invested in farm subsidies and public works to stabilise the economy).
The most noteworthy point is that as economies get integrated (through globalisation), recession in one economy will hamper other economies as well (China's export, India's IT sector et al) and, obviously, a well devised stimulus package will also benefit many other countries too. In this modern era, when economists are busy drafting new and contemporary theories, the Keynesian economic theory still has its own place and is still relevant in modern times.
Sray Agarwal
For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist).
Read these article :-
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus
ZEE BUSINESS BEST B SCHOOL SURVEY
IIPM awards four Bengali novelists
The Hindu : Education Plus : Honour for IIPM
IIPM ranked No.1 B-School in India, Management News - By ...
IIPM Ranked No1 B-School in India
Moneycontrol >> News >> Press- News >> IIPM ranked No1 B-School in ...
IIPM ranked No. 1 B-school in India- Zee Business Survey ...
» IIPM ranked No1 B-School in India :: Education, Careers ...
The Hindu Business Line : IIPM placements hit a high of over 2000 jobs
Deccan Herald - IIPM ranked as top B-School in India
India eNews - IIPM Ranked No1 B-School in India
IIPM Delhi - Indian Institute of Planning and Management New Delhi
IIPM ranked ahead of IIMs
IIPM makes business education truly global-Education-The Times of ...
Some things are forever, and Keynes' theories fall in that category...
It’s not for the first time that the world is experiencing an economic turmoil or global meltdown. This phenomenon (or to be precise, recession) has affected almost all economies and financial institutions. What started with the US financial crisis has now engulfed almost all the countries of Europe and also Asian giants like Japan. Most of the economies are planning some or the other kind of bailout plan or stimulus package to get rid of this on-going recession. The most prominent steps were taken by big economies like the United States, Japan, European Union (EU) and China. To counter this recession, US launched a $700 billion bailout package, followed by Germany with a $29 billion stimulus package, Japan with a $275 billion package and China announcing a $600 billion stimulus package (the biggest package as percent of GDP).Consider this: USA's bailout plan is aimed at providing its people with tax rebates ($600 to individuals and $1,200 to couples) and bailing out financial institutions / banks experiencing steep problems. Japan's stimulus package is designed to help and increase savings of small business and families. Germany has its own plan that includes tax breaks on purchase of cars, credit facilities to small and mid-size businesses and investment in infrastructural development. China framed its stimulus package aimed at increasing consumer spending, developing infrastructure and thus generating employment. All of the above plans look quite similar and the bottom line remains common in all the above mention cases i.e. to refurbish their respective economic growth. This is not a mere coincidence but an intelligently devised plan based on an age-old time tested theory. These stimulus packages are largely based on Keynesian theory (that advocates more of government spending, low interest rates, easy credit / money policy). Recently, G7 in Washington discussed a framework to tackle recession based on Keynes’ theories. And even the British bailout plan was largely devised on Keynes’ economic theory. A great economist in the 20th century, John Maynard Keynes in his book titled 'The General Theory of Employment, Interest, and Money", had already described such situations and given feasible solutions as well. His theory has also helped many big economies to come out of recession in the past as well. Keynes' theory helped the world in 1929 during the Great Depression (US President Roosevelt invested in farm subsidies and public works to stabilise the economy).
The most noteworthy point is that as economies get integrated (through globalisation), recession in one economy will hamper other economies as well (China's export, India's IT sector et al) and, obviously, a well devised stimulus package will also benefit many other countries too. In this modern era, when economists are busy drafting new and contemporary theories, the Keynesian economic theory still has its own place and is still relevant in modern times.
Sray Agarwal
For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist).
Read these article :-
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus
ZEE BUSINESS BEST B SCHOOL SURVEY
IIPM awards four Bengali novelists
The Hindu : Education Plus : Honour for IIPM
IIPM ranked No.1 B-School in India, Management News - By ...
IIPM Ranked No1 B-School in India
Moneycontrol >> News >> Press- News >> IIPM ranked No1 B-School in ...
IIPM ranked No. 1 B-school in India- Zee Business Survey ...
» IIPM ranked No1 B-School in India :: Education, Careers ...
The Hindu Business Line : IIPM placements hit a high of over 2000 jobs
Deccan Herald - IIPM ranked as top B-School in India
India eNews - IIPM Ranked No1 B-School in India
IIPM Delhi - Indian Institute of Planning and Management New Delhi
IIPM ranked ahead of IIMs
IIPM makes business education truly global-Education-The Times of ...
