KEYNESIANISM AS AN ECONOMIC STRATEGY OF STATE REGULATION OF THE CRISIS PERIOD

The article highlights the role of Keynesian theory in the metamorphosis of the world financial situation. It is revealed that in the current conditions of the global pandemic caused by Covid-19, a number of countries are on the verge of a new economic downturn. Therefore, there is a need to develop effective measures of state regulation to support the modern economy and create conditions for its sustainable development. Declining industrial production, slowing down investment processes and, as a consequence, rising unemployment, declining real incomes provoke rising social tensions in society and deteriorating socioeconomic situation. Most countries take important measures for social support to the population, provide assistance to socially important economic entities and continue to develop government programs aimed at mitigating the effects of the crisis and ensuring sustainable economic growth. However, visible positive changes in the socio-economic state of society are manifested very slowly. According to J. M. Keynes, the model of state regulation of the economy on a national scale promotes the process of social reproduction through the emergence of «effective demand», which includes consumer demand (demand for consumer goods) and investment demand (demand for industrial goods). Keynes defined demand as the decisive economic determinant, which in fact denied the classical theory of supply. During the financial crisis, Keynesianism has the right to regenerate from the standpoint of using the timeless idea of separation of real and financial economies. At the same time, inflation may be the result of excessive use of Keynesian views. Thus, Keynesianism, as a driving generator of thought about the active use of state restrictions of an institutional nature in the period of transformations of the financial order becomes relevant in times of crisis.