Keynesian Business Cycle Theory

The Keynesian Business Cycle Theory, or KBCT, is central to the Keynesian school of economic thought. The KBCT was John Maynard Keynes’ lens through which he analyzed economic volatility and offered prescriptions on how to correct market failures and deficiencies. An understanding of the KBCT is essential to an understanding of Keynes’ methodology and theories and how they apply to historical events and the future to come.  Continue reading