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This causes a deficit spending and results in bringing up employment and balancing total demand.
In monetary policy, Keynesians believe that money supply should increase during economic downturns and decrease during economic booms. Wage and price controls are used against inflation. But Keynesians would rather fight unemployment and tolerate higher rates of inflation due to unemployment places hardship on economic resources. The rich during a depression would hoard money rather than invest on the economy while the poor had to spend their incomes on the necessities of life.
Keynes believed he could use his ideas for global economic policy to promote economic development and full employment in poor countries...
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