Keynesianism is one of the most important economic schools in the 20th century, with its main viewpoints including government intervention in the economy, coordination of fiscal and monetary policies, and the theory of insufficient aggregate demand. This article will introduce the thoughts and contributions of Keynesianism from these aspects.

Firstly, Keynesianism believes that there is a risk of unemployment and economic depression in a market economy, as the self-regulating mechanism of the market economy is not perfect. When economic problems arise, companies will reduce investment, layoffs, and consumption, leading to rising unemployment and slowing economic growth. To avoid this situation, the government should take active intervention measures to stimulate economic growth through increasing government spending and reducing interest rates, thereby increasing employment and improving economic conditions.

Secondly, Keynes advocated the coordination of fiscal and monetary policies to achieve macroeconomic stability. In times of economic recession, the government should adopt expansionary fiscal policies to increase aggregate demand by increasing government spending and tax cuts. At the same time, the central bank should also adopt expansionary monetary policies to stimulate economic growth by reducing interest rates and increasing the supply of money.

Thirdly, Keynes believed that insufficient aggregate demand is one of the main causes of economic crises. When people's confidence declines and consumption and investment decrease, aggregate demand will decline, leading to economic decline. Therefore, the government should take active measures to expand aggregate demand, such as stimulating consumption and investment through increasing government spending and tax cuts.

Fourthly, Keynes believed that the establishment of a social security system is an important means to achieve social fairness and economic development. The government should guarantee the living and employment opportunities of vulnerable groups through the establishment of a social security system, thereby promoting social harmony and economic development.

Fifthly, there are different evaluations on Keynesianism. The ideas and practical achievements of Keynesianism were widely applied and practiced in the mid-20th century. Nevertheless, there are also criticisms that Keynesianism can lead to unreasonable resource allocation and inefficient problems. In addition, there are some limitations in the theory and practice of Keynesianism in dealing with financial risks.

On the one hand, some people believe that excessive government intervention in the market will lead to unreasonable resource allocation and inefficient problems. On the other hand, the policy advocacy of Keynes also has some limitations in practice, such as poor results in dealing with financial crises.

However, the thoughts and theoretical framework of Keynesianism still have a profound impact on modern economics. It emphasizes the role and responsibility of the government, providing new ideas and directions for the formulation and practice of economic policies. In future economic practice, we need to continue to explore and improve the theoretical framework of Keynesianism to better adapt to the changing economic environment and social needs.

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