In the 1970s, there was a period of stagflation i.e. higher inflation and higher unemployment which led to heavy criticism of Keynesian economics. Keynesian economics leans toward a centrally planned economy; it eliminates the effects of market forces on decision making thereby implying that Government knows what is best for the economy. You can read about the Monetary System – Types of Monetary System (Commodity, Commodity-Based, Fiat Money) in the given link.
Increasing a budget deficit in a recession was advocated by Keynesian economics. However, it is argued this causes crowding out.
- National Institution for Transforming India (NITI Aayog) – A Brief Overview
- Monetary Policy – Objectives, Roles and Instruments (UPSC Indian Economy)
Fiscal Policy in India – Objectives, Components, Fiscal Consolidation, FRBM Act, 2003