According to Keynes,

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Quizplus · Accepted Answer

Keynes believed that in times of economic depression, balancing the budget would exacerbate the situation by decreasing government spending and causing further economic contractions. In his view, expansionary fiscal policy was needed to stimulate and sustain economic growth. He did not blame the Great Depression on expansionary fiscal policy, nor did he refer to inflation as always and everywhere a monetary phenomenon. The stability of the Phillips curve was not a major concern for him.