Khemraj Subedi, Associate Professor

  Keynesian Economic Theory as Public policy Guide.   Meaning of public policy   The word public policy is widely used. It indicates to the policies taken by the government into different sectors like health, education, agriculture, industry, commerce etc. In the beginning, the public policy was used as political science and public administration. Public policy was one of the branches of the disciplines. Traditional studies described the institution in which public policy was formulated. Policy could be viewed as a set of guidelines for action aimed at achieving goals and objectives considered to be desirable or aimed at satisfying the needs of society in general or of   groups in particular.   Policy refers to the policies taken by the government into different economic and non economic sectors. The main objective of the public policy is to serve and develop the people by providing conducive environment, which maintains the norms and values of the society for quality of li

  Criticisms of Keynes’ Theory of Liquidity Preference Khemraj Subedi, Associate Professor M.Phil (Economics) PhD Scholar in Economics 1. Indeterminate: Keynes’ liquidity preference theory is also indeterminate like the classical theory of the rate of interest. This is because the liquidity preference curve itself shifts up and down with changes in the level, of income. Keynes’ liquidity preference curve includes these motives [L 1  (Y) + L 2  (r)]. The first part of the liquidity preference curve (L 1 ) comprising transaction and precautionary motives cannot be known unless we know the level of income; therefore, we cannot know the relevant liquidity preference curve and hence the rate of interest. The theory is indeterminate because liquidity curve is difficult to locate without knowing the level of income. What the Keynesian formulation regarding the rate of interest tells us is the various schedules of liquidity preference at various levels of income and not what the rate o

Link for Accelerator Theory https://www.slideshare.net/khemrajsubedi/accelerator-theory