Finance 360 | Vol 1 Vol 1 | Page 31

and 60s. The methodology was successful in preventing the economy from overheating and also to prevent depression and big financial crisis. The latest use of Keynesian economics is demonstrated by the fiscal policy taken by the governments around the world during the financial crisis of 2008. However, there was a basic flaw in using the stimulus measures by the governments. When the economy goes into recession or a slowdown mode, the aggregate demand would fall and the unemployment rates would go up. If the government immediately stimulates the economy by the means of government spending, there would be positive as well as negative effects. The positive is that the private demand lost \??\X?Y?HHX?X?[X[??X??[][]\?HX???^H?X??[???\K???]?\?][??XY?????[???]??]?]H[??\?Y[??\?H??\??Y[??[?[??\?\??[?X[HHY?X?]?[?[??[?Y?X?]?[?[??\??[?Y?H\??Z[????\??Y[??????\?H[X[????????\?\ H?]?]H?X??[??\?Y[??]????Y?] ?\?\?^X?H?]\?\[?Y?[?XH[?HY?\?X]??[?[??X[?\?\?? ?  ?H?\??[?X?H?\?XYH?\?H???K?X??\?[Y[?Y?H[??][??[H[[??H[X[?\?Y?Z[??\??\?[??][?[?]\?H?X?H?\?Y?[?Y?H??H?H[??X\?[??[?\?\??]\??X??\?[Y[??????[???[??\?Y[???\?\?H???[???]??]?]H[??\?Y[??\?\[?YYH??X\???Y[?[?Y?Y??K?[??K]\?\??[?X[?\?H?^[?\?X[?X???ZX??[?H?Y??^K?[??X? ?^[?\?YY?\?Y?\?H?\??[?[][\??H?[?\?H\?\??\?[?[?[\?[Y[? ?\???[[??\?H][??][?\?H?\??\?H??[??\X\????HH?Y?\??[?\?]Y?H??\??Y[?Y?X?]?[?[???\?\?Y?Y?X?]?[?[??\?\?Y\?[??Y?[?[\?[Y[? H^?H[?^H?\??[]Y[?HX???^H??[X?X[H?[][]H[X[?[?[???\?Y?H?\?[?\??\??[??\? ?H???[???]?[??\?Y[????[?????\?[?\??\?N???]?\?Y??[][\?\??]?[??????HY?\?[\?[Y[??[?\?H?Y?\???Y?H????X][??[??][?[?[????[??[??[?]?\?H?\?[?\??\??[??\??X?]\?H?Y??????X??????X?[?[??[?[??XY????[???]Y??X? ?\?H??\??X??YH[?H[?\?[??Y H\?H??^[?\?X[?X???ZX??[?H?Y???^\?^?[Y[H\??[?X[ ??\?[?^\?Y[??H[?\?]?[][\?YX\?\?\??H[??\??Y[?X????H??X^H???HH?Y??\???H?H?\?\???]\?]\???H[?Y?HH[?]?YX[??\??Y[??[?H?Y\?X???^??Y\H?Y\?X?X???^H[??\K????B??