The United States never fully recovered from the Great Depression until the government employed the use of Keynesian economics. John Maynard Keynes was a British economist whose ideas and theories greatly influenced the practice of modern economics and the economic policies of governments around the world. He believed that during times when the economy slowed or went into decline, people would not spend as much money and therefore the economy would steadily decline until a depression occurred. According to him, if the government pumped money into the economy, it would help stimulate consumers to buy more and as a result companies would produce more, in a continuous cycle. This cycle is called the multiplier effect. Keynes' ideas resonated throughout the economic world and are still being put into practice in today's economy. Keynes stated that because the private sector is unpredictable, it could have a negative impact on the economy, and therefore government interference is necessary to increase GDP. He believed this was done by putting money into the economy or by investing. Many economists have begun to advocate for more government intervention to rebalance today's economy. Our generation has seen Keynes' theories being used in the United States and around the world. Some of these include government bailouts of large companies and monetary stimulus to households. Keynes created the aggregate spending model to achieve balance in the economy and prevent recessions or depressions. The Keynesian aggregate expenditure model is a graphical model used to analyze “the basic components of Keynesian economics and to identify the Keynesian equilibrium as the intersection of aggregate expenditures… half of the document… d Member States they must first agree with Congress whenever changes in spending and taxes occur. The third lag “occurs between when the policy is changed and when the changes affect the economy.”(3) Again, this step may take a long time due to policies. These could be obstacles and/or something the government can consider reviewing if they are willing to truly implement this model. Works Cited1. Keynesian model of aggregate expenditure, AmosWEB GLOSS*arama, http://www.AmosWEB.com, AmosWEB LLC, 2000-2011. [Accessed: October 2, 2011].2. Keynesian equilibrium, AmosWEB GLOSS*arama, http://www.AmosWEB.com, AmosWEB LLC, 2000-2011. [Accessed: October 2, 2011].3. Blinder, Alan S. “Keynesian Economics: The Concise Encyclopedia of Economics.” Library of Economy and Freedom. Liberty Fund, Inc. Web. 02 October. 2011. .