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11 Кeynes Keynes believed that the government should regulate the economy through the use of fiscal policy. He encouraged the

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Keynes recommended government actions to deal with the economic recession. During the recession, aggregate demand is very low. An increase in government expenditure and a reduction in taxes would cause a rise in aggregate demand in the economy.

Keynesian recommendations were used extensively and intensively during the financial crisis of 2007-2008. The government raised its expenditure level by an extensive amount. Even, today the government continues to incur the expenditure. Unemployment insurance, mediclaims, and expenditure on infrastructure are examples of Keynesian prescriptions.

After recovery from the economic recession, government is not pursuing or continuing old initiatives. But implicitly government is still in favor of Keynesian prescriptions.

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