Answer to Question #313175 in Macroeconomics for captain nyagah

Question

In the 1970s and early 1980s, it seemed that Keynesian policy did not work, sparking economic policy debates. discuss

Answer 1

During the 1970s, Keynesian financial analysts needed to reconsider their model on the grounds that a time of slow economic growth was joined by higher inflation. Milton Friedman gave believability back to the Central bank as his approaches helped end the time of stagflation. Similarly, stiff competition from the international market, expenses incurred during the war in Vietnam and reduction of jobs in the manufacturing sector led to the Keynesian to rethink and restructure their model in order to accommodate all the unforeseen factors.