The economic theory associated with John Maynard Keynes is known as what?

The economic theory associated with John Maynard Keynes is known as Keynesian economics.

Keynesian economics argues that total spending, or aggregate demand, strongly influences production, employment, and inflation. Because demand can fall below an economy’s productive capacity, an economy may remain in a recession instead of automatically returning quickly to full employment. Keynesian economists therefore emphasize the possible role of government and central-bank action in stabilizing the business cycle.

John Maynard Keynes developed the ideas during the economic turmoil of the Great Depression. He presented the central framework in The General Theory of Employment, Interest and Money, published in 1936. The book challenged the prevailing assumption that flexible prices and wages would reliably restore full employment.

Keynesian economics is not the same as Marxism, which developed from Karl Marx’s analysis of capitalism and class relations. It is also distinct from monetarism, which emphasizes control of the money supply, and supply-side economics, which focuses on incentives to produce. Modern macroeconomics contains several Keynesian variations, but the school remains identified with demand management and countercyclical policy.