Glossary of Economic Terms: K

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Keynesian Economics

An economic theory originated by the British economist John Maynard Keynes and his followers. Keynes maintained that governments should use the power of the budget to maintain economic growth and stability and overcome the recessionary cycles common in most western economies.

key rate

The interest rate that controls, either directly or indirectly, bank lending rates and the cost of credit paid by borrowers.

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Last updated February 6, 2004