- The debate between Keynesian economics and orthodox (classical/neoclassical) economics centres on the degree of government intervention required in an economy. - Keynesian economics advocates for active state intervention, fiscal stimulus, and government spending during economic downturns to boost aggregate demand and employment. - Orthodox economics emphasizes free markets, fiscal restraint, balanced budgets, deregulation, and the view that markets self-correct over time without causing inflationary pressures. - Modern policy debates often oscillate between these two philosophies, especially in response to crises like inflation shocks, public debt burdens, and post-pandemic economic recovery strategies. - **Keynesian Economics:** An economic theory developed by John Maynard Keynes advocating for active government intervention and increased public spending to stimulate aggregate demand, especially during economic downturns and recessions. - **Orthodox Economics:** Economic approach prioritizing free markets, price stability, and minimal state intervention, assuming that markets naturally self-regulate toward full employment and long-term equilibrium. - **Fiscal Deficit:** A situation where a government's total expenditures exceed its total revenue, often utilized in Keynesian policies to fund public investments and stimulate demand. **Introduction** The article explores the enduring debate between Keynesian and orthodox economic theories, examining how differing views on government spending, market self-regulation, fiscal deficits, and state intervention shape modern macroeconomic policymaking globally. **Core Issue and Detailed Points** - The debate between Keynesian economics and orthodox (classical/neoclassical) economics centres on the degree of government intervention required in an economy. - Keynesian economics advocates for active state intervention, fiscal stimulus, and government spending during economic downturns to boost aggregate demand and employment. - Orthodox economics emphasizes free markets, fiscal restraint, balanced budgets, deregulation, and the view that markets self-correct over time without causing inflationary pressures. - Modern policy debates often oscillate between these two philosophies, especially in response to crises like inflation shocks, public debt burdens, and post-pandemic economic recovery strategies. **Key Statutory Bodies, Acts & Concepts** - **Keynesian Economics:** An economic theory developed by John Maynard Keynes advocating for active government intervention and increased public spending to stimulate aggregate demand, especially during economic downturns and recessions. - **Orthodox Economics:** Economic approach prioritizing free markets, price stability, and minimal state intervention, assuming that markets naturally self-regulate toward full employment and long-term equilibrium. - **Fiscal Deficit:** A situation where a government's total expenditures exceed its total revenue, often utilized in Keynesian policies to fund public investments and stimulate demand.