The model of AS-AD-BP and the policies effects

Author

He, Jin-she

Author_Institution

Dept. of Econ. & Trade, Zhengzhou Inst. of Aeronaut. Ind. Manage., Zhengzhou, China

Volume

Part 1

fYear

2011

fDate

3-5 Sept. 2011

Firstpage

433

Lastpage

435

Abstract

The Stagflation of the 1970s almost crashed Keynesian economics. It is the model of AS-AD that forced Keynesian economics recovered. Today, Keynesians gradually admit that the model of AS-AD is self-contradictory. Since 2007, financial crisis has generated a tendency that Keynesians would have come back onto the stage^[1]. But in the real world, all economy systems are open. However, when the model of AS-AD is generalized in the open economy, we found that all of the Keynesian aggregate demand policies do NOT work even though it is used in respectively solving those problems of the short-run economic growth, unemployment and inflation, based on the model of AS-AD-BP, during analyzing the policies effects.

Keywords

economic indicators; financial management; AS-AD-BP model; Keynesian economics; economic growth; economy systems; financial crisis; policies effects; Aggregates; Analytical models; Economic indicators; Exchange rates; Government; Unemployment; AS-AD-BP Model; Open Economy; Policies Effects;

fLanguage

English

Publisher

ieee

Conference_Titel

Industrial Engineering and Engineering Management (IE&EM), 2011 IEEE 18Th International Conference on

Conference_Location

Changchun

Print_ISBN

978-1-61284-446-6

Type

conf

DOI

10.1109/ICIEEM.2011.6035193

Filename

6035193