An economic philosophy put forth by British economist John Maynard Keynes. Keynesian economics calls for overspending, or "deficit spending," during an economic slowdown, and underspending, or creating budget surpluses, during times of too-rapid economic expansion. See "Keynesian Economic Theory" essay.
R.C. Epping, A Beginner's Guide to the World Economy, 3rd ed., New York, 2001.