Keynesian economics is an economic theory developed by John Maynard Keynes during the 1930s. It emphasizes the role of government intervention in the economy, particularly during periods of recession. Keynes argued that increased government spending can help stimulate demand, leading to job creation and economic recovery. According to Keynesian economics, when consumers and businesses reduce spending, it can lead to a downward spiral of reduced income and further spending cuts. To counteract this, Keynes advocated for fiscal policies, such as government investment and tax cuts, to boost demand and stabilize the economy.