Managing the Modern Economy: Econometric Specification
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The legacy of the Keynesian Revolution is a method or an approach to macroeconomic management that attempts largely, but not entirely, to manipulate the level of demand through fiscal and monetary policy instruments in order to achieve economic stabilisation. This has been assumed to mean steady operation of the economy at or near full employment. In the open economy, this approach must be extended to include manipulation of trade policy instruments.
KeywordsEconometric Model Full Employment Final Demand Modern Economy Economic Management
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