What was mercantile policy in the

Keynesian economics is a school of thought in economics founded by British economist John Maynard Keynes in the 1930s. It's based on the proposition that governments can use fiscal and monetary policies to influence economic activity and maintain stable economic growth.

Keynesian economics is based on the idea that aggregate demand drives the economy. Aggregate demand is the total demand for goods and services in an economy, and it includes consumer spending, business investment, government spending, and net exports.

Keynesian economics argues that the government can influence aggregate demand through fiscal policy, which refers to the government's spending and tax policies. For example, the government can increase aggregate demand by increasing government spending or cutting taxes, both of which put more money into the hands of consumers and businesses.

Keynesian economics also argues that the government can influence aggregate demand through monetary policy, which refers to the central bank's policies regarding the money supply and interest rates. For example, the central bank can increase aggregate demand by lowering interest rates, which makes it cheaper for businesses and consumers to borrow money.

Keynesian economics is often contrasted with classical economics, which emphasizes the importance of market forces in driving the economy. Keynesian economics argues that market forces are not always sufficient to maintain stable economic growth, and that government intervention is necessary to maintain full employment and economic stability.

Keynesian economics has been highly influential in economic policymaking since the 1930s, and it has been used to justify a wide range of government interventions in the economy, including tax cuts, increased government spending, and central bank policies to lower interest rates.