Impact Of Keynesianism On Economic Sustainable Development

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Keynesianism on economic sustainable development
Keynesians examine the relationship between money, unemployment and prices. The main idea is the fact that the amount of money that people were saving was more than which was being invested. Keynesians argue that this can happen when the interest rates on savings are high and people will want to make more money from their savings. However, this leads to rising rates of unemployment, because people do not want to spend much of what they earn from their employers therefore, making it harder to aggregate for employers to make more money (Beer 2008). This propounddition of Keynesianism opens the view of how human behaviours and activity in relation to savings, affects the economic and social growth
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The German’s adopted and popularized the principle in the 1960s to tackle environmental issues that might occur with the rise in technological industrialization. This Keynesian idea further extended globally, with the Rio declaration on environment and development in 1992 declares in its n°15 principle that; ‘In order to protect the environment, the precautionary approach shall be widely applied by States according to their capabilities. Where there are threats of serious or irreversible damage, lack of full scientific certainty should not be use as a reason for postponing cost effective measures to prevent environmental degradation (Beer …show more content…
As the world is recognize to have become more complex, simplified assumptions of classical model must give way to the acknowledgement of the risks, uncertainties, and expectations pursued to build success.
Though Keynesians contributed immensely to sustainable development, but to this day of post Keynesianism, their approach only discuss the concepts of sustainable development but fails to put forward a clear presentation of the three fundamental pillars. Keynesian theories were implemented by western nations to recover from the two major global recessions, but the ideas are been neglected although some people believe that Keynesians were ahead of their time. Post Keynesians should increase work on the modern sustainable development approaches and bring out ideas that matches the trends of current and future global

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