Would the macroeconomic policies that allowed us to avoid another great depression be classified as being classical or keynisian?

Answer 1

The macroeconomic policies that helped avoid another Great Depression, particularly during the 2008 financial crisis, are primarily classified as Keynesian. These policies included significant government intervention, such as fiscal stimulus measures and monetary easing by central banks, aimed at boosting demand and stabilizing the economy. Keynesian economics emphasizes the importance of active government involvement during economic downturns to mitigate recessions and promote recovery. In contrast, classical economics advocates for minimal government intervention and relies on market forces to self-correct.