Editing Economics (section)

=== Keynesian economics ===
{{Main|Keynesian economics}}
[[File:Lopokova and Keynes 1920s cropped.jpg|thumb|upright=0.8|alt=John Maynard Keynes|[[John Maynard Keynes]], a key economics theorist]]
Keynesian economics derives from [[John Maynard Keynes]], in particular his book ''[[The General Theory of Employment, Interest and Money]]'' (1936), which ushered in contemporary [[macroeconomics]] as a distinct field.<ref>{{unbulleted list citebundle
|1 = {{cite book |last=Keynes |first=John Maynard |title=The General Theory of Employment, Interest and Money |publisher= Macmillan|year=1936 |location=London |isbn=978-1-57392-139-8 |title-link=The General Theory of Employment, Interest and Money }}
|2 = {{harvp|Blaug|2017|p=347}}
}}</ref> The book focused on determinants of national income in the short run when prices are relatively inflexible. Keynes attempted to explain in broad theoretical detail why high labour-market unemployment might not be self-correcting due to low "[[effective demand]]" and why even price flexibility and monetary policy might be unavailing. The term "revolutionary" has been applied to the book in its impact on economic analysis.<ref>{{unbulleted list citebundle
|1 = {{cite encyclopedia |last=Tarshis |first=L. |author-link=Lorie Tarshis |date=1987 |title=The New Palgrave Dictionary of Economics |publisher=Palgrave Macmillan |edition= |editor-first1=John |editor-last1=Eatwell |editor-first2=Murray |editor-last2=Milgate |editor-first3=Peter |editor-last3=Newman |volume=III |pages=47–50 |url=http://www.dictionaryofeconomics.com/article?id=pde1987_X001226 |doi=10.1057/9780230226203.2888 |isbn=978-0-333-78676-5 |chapter=Keynesian Revolution |access-date=27 October 2017 |archive-date=28 October 2017 |archive-url=https://web.archive.org/web/20171028042612/http://www.dictionaryofeconomics.com/article?id=pde1987_X001226 |url-status=live |doi-access=free }}
|2 = {{harvp|Samuelson|Nordhaus|2010|p=5}}
|3 = {{harvp|Blaug|2017|p=346}}
}}</ref>

During the following decades, many economists followed Keynes' ideas and expanded on his works. [[John Hicks]] and [[Alvin Hansen]] developed the [[IS–LM model]] which was a simple formalisation of some of Keynes' insights on the economy's short-run equilibrium. [[Franco Modigliani]] and [[James Tobin]] developed important theories of [[Consumption (economics)|private consumption]] and [[investment]], respectively, two major components of [[aggregate demand]]. [[Lawrence Klein]] built the first [[large-scale macroeconometric model]], applying the Keynesian thinking systematically to the [[Economy of the United States|US economy]].<ref>Blanchard et al. (2017), p. 510.</ref>