While Keynesian’s advocate using government more than the Neo-classical approach (and hence can appear more macro-oriented), both prefer a government which limits itself to certain types of policies with narrow objectives and responsive to specific situations (business cycle, deficits in a recessionary period or government tax policy to encourage savings) rather than a government which is an active player in the private economy. The government ought to “tinker” with the private economy—not bend, fold and spindle it on a regular and long term basis.

What’s the Theory Behind Innovation and the Knowledge-Based Economy | Journal of Applied Research in Economic Development Saturday, April 26, 2014 @ 1:05pm