The relevance of classical Keynesian economics in the 21th century A Keynesian study of the boom and bust of the Celtic Tiger

Jacob Strube Wismer-Pedersen, Sofie Nicoline Busk & Kjartan Emil Rasmussen

Studenteropgave: Basisprojekt

Abstrakt

Our project dives into the theoretical framework of the Classical Keynesian school of thoughts, as we examine two practitioners of Classical Keynesianism and its relevance in the 21th century. During this project, we will start by illustrating different scholars who has argued against the use of Classical Keynesian concepts, as being outdated or incorrect in relation to the current global economic system.

We will provide evidence, displaying the importance of Keynes major framework in present date, as well of that of David Hume. In order to prove the importance, we will display the consequences of a lackluster approach to the concepts of “Economic Flow”, “The Balance of Trade” and “The Multiplier”, when developing a national economy. Our country of display will be that of the Republic of Ireland, in relation to the boom and bust policy during the rise of the Celtic Tiger, as the country has been known for their disregard of Keynesian concepts, dating back to the 1930’s and the birth of the country. We will conduct a study based in 1987 and follow the economic evolution through the prosperity of the 1990’s and early 2000’s, as well as the bust in 2008.

We will uncover the major factors behind the developments, as well as give an in-depth analysis of these main economic actors, in relation to the Keynesian concepts mentioned above. As the analysis will be based off these main theoretical concepts, we will examine how the practice of a Keynesian disregard has damaged the overall structure of the national economy. And lastly, we will provide ideas on the base of our theory, to suggest corrections in order to stabilize the Irish economy.

UddannelserBasis - International Samfundsvidenskabelig Bacheloruddannelse, (Bachelor uddannelse) Bachelor
SprogEngelsk
Udgivelsesdato24 maj 2016
Antal sider43

Emneord

  • Keyneisian
  • 21th century
  • Ireland