Keynesian Economics is an economic theory that emphasises the role of government intervention to manage economic cycles and achieve full employment. Originating from the ideas of John Maynard Keynes, it suggests that active fiscal policies, such as government spending and tax adjustments, can mitigate the adverse effects of economic recessions and depressions. By influencing aggregate demand, Keynesian Economics aims to stabilise the economy and promote sustainable growth, making it a cornerstone of modern macroeconomic policy.

Keynesian Economics matters because it provides a framework for governments to address economic instability and unemployment. By advocating for active fiscal policies, it offers tools to counteract economic downturns, ensuring economic resilience. This theory is particularly relevant during financial crises, where government intervention can prevent deeper recessions and support recovery.

Academic consensus suggests that Keynesian Economics has significantly influenced global economic policy, particularly in times of crisis. Its principles have been adopted by various state actors to stabilise economies and promote growth. The theory's emphasis on government intervention aligns with broader international relations strategies that seek to balance economic power and ensure equitable development across regions, including the Global South.