Abstract:

Keynesian economics argues that private sector decisions sometimes lead to inefficient macroeconomic outcomes and therefore advocates active policy responses by the public sector, including monetary policy actions and fiscal policy actions by the government to stabilize output over the business cycle. This paper defines the core of Keynesian economics in the mirror of defence expenditures and their influence on country's economy growth. The main attention is paid to the analysis of military-industrial complex and its pressure on armed forces, as one of most important factors introducing a danger of the so-called militarization of both state economy of advanced industrial countries and their social life.