Page 21 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.73, # 2, 2016, pp. 21-26

NEW KEYNESIAN POLITICAL ECONOMIC POLICIES

Noralv Veggeland

Professor of Public Policy, University College Lillehammer

Received 20 September 2016; accepted 16 December 2016;
published online 26 December 2016
Abstract
Keynesianism is a national focused economic theory. The Keynesian theory builds
on the assumption that prices and wages are sticky sizes evolves imbalance; high
inflation or deflation follows. This in combination with various market crises, such
as the current financial crisis, is suggesting that the market always fails, both in
achieving full employment and avoiding crisis thataffects unemployment. Thus,
keynesian argues that for an active state stabilization and labor market policy in the
form of fiscal and monetary policies that can create just full employment and good
business, which market deregulation and laissez-faire policies fail.

Keywords: Keynesianism; state intervention; business; neoliberal orthodoxcy;
marketizing; social democracy.

JEL classification: E12

As Canada overcame the Liberal Party with Justin Trudeau as prime minister in
autumn 2015, with a social democratic politics. That party won with a clearly stated
neo-Keynesian rhetoric, with the emphasis oo the state's importance as a basis for its
reform proposals for the revival of the welfare state after a destruction of this from a
conservative government side. In the United States, emerges socialist / Social
Democrat, Senator Bernard "Bernie" Sanders, as a popular democratic opposition
candidate Hillary Clinton. In the UK, we see that the same thing happens with the
British variety labor in opposition; Social Democratic British Labor Party. The
choice of Socialist Jeremy Corbyn as party leader shows a completely new turn to
the left. In Spain, Portugal, Italy and Greece, we see the same left shift; In Greece,
Syriza and Portugal won this left the recent elections. The Norwegian social
democracy comes not yet by this political turn of events, but we seek the continued
support of the right liberal political center around the Christian Democrats for power
toward the general election in 2017.

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