Keynes's thinking on how to reduce these problems was very influential with economists and policy makers for several decades following the 1930s. The economic downturn that started in 2008 led to a widespread revival of interest as economic conditions seemed to resemble those seen in the 1930s. This OpenLearn course on Keynes's ideas is therefore highly relevant to modern policy making, as well as being of historical interest.

Course learning outcomes

After studying this course, you should be able to:

• Understand what economists mean by ‘models’ and how they can be used to inform economic policy
• Define the concept of equilibrium and explain how it can occur at low levels of output
• Begin to understand the Keynesian model of aggregate demand and how it explains why economies can get stuck in a low output equilibrium
• Critically evaluate the role of fiscal policy in changing the economy.