John Maynard Keynes, fiscal stimulus, the gold standard, and
the boom and bust economic cycle
John Maynard Keynes was best known for advocating that the government could
and should create prosperity by fiscal stimulus. Fiscal stimulus is when the
government increases spending and increases borrowing. Fiscal stimulus means
borrow money and spend it.
John Maynard Keynes also said the gold standard was a barbaric relic.
These two ideas are contradictory.
The boom and bust economic cycle is caused by changes in the delay between
when people get money and when people spend money. see the cause of the boom and bust economic cycle.