Keynesian

Keynesian economics, as part of the neoclassical synthesis, served as the standard macroeconomic model in the developed nations during the later part of the Great Depression, World War II, and the post-war economic expansion (1945–1973). It was developed in part to attempt to explain the Great Depression and to help economists understand future crises. It lost substantial influence following the oil shock and resulting stagflation of the 1970s, with neoliberalism largely replacing Keynesianism as the dominant economic paradigm starting in the late 1970s. Keynesian economics was later redeveloped as New Keynesian economics, becoming part of the contemporary new neoclassical synthesis, that forms current-day mainstream macroeconomics. Today, governments still tend to use Keynesian or otherwise interventionist tools during major crises; the 2008 financial crisis sparked the 2008–2009 Keynesian resurgence by governments around the world.