Correct Answer - Option 1 : John Maynard
The correct answer is option 1, i.e. John Maynard.
The theory of ‘Keynesian’ or ‘New Deal’ Capitalism’ was given by British economist John Maynard Keynes.
- After the stock market crash in 1929, heads of the companies, CEOs and leaders abandoned the free market ideology and its principles.
- The era of state intervention in the economy was born and called as the third stage of capitalism.
- The state was intervening to protect national industries from overseas competition.
- It was to foster the growth of national corporations in social welfare programmes and infrastructures.
- This approach of managing the economy is known as ‘Keynesian’ model.
