Relations between Keynes's theory and F. D. Roosevelt's economic policy in the environment of the Great Economic Depression of 1929 - 1933

Abstract

Purpose of the study: The aim of the article is to show possible relations between economic theory and economic policy using the example of the interactions between the Great Economic Crisis, Keynes' theory, and Roosevelt's economic policy.
 Methodology: The methods used include literature studies and critical analysis of the literature, which are important for the development of a given scientific discipline. The subject of research determines the need to use the historical method. In addition, induction and deduction were used, as well as analysis and synthesis.
 Main Findings: Roosevelt's New Deal program is not a perfect reflection of Keynes's theory. In economic policy, such a model approach seems impossible. Both solutions occur parallel to each other. There are points of great similarity, but there are also visible differences. Adopting the thesis about Roosevelt's independence points to the weakness of orthodox economic theory in the face of economic challenges.
 Applications of the study: importance in the teaching of economic sciences. The teaching of economic sciences plays a key role in shaping the direction and level of economic knowledge in society. Currently, in addition to economic orthodoxy, a heterodox approach plays an important role in this respect. Therefore, it constitutes the basis for independent analysis in this area. The way of presenting issues within the so-called theoretical subjects, such as the history of economic thought,. For a critical analysis of economic phenomena, it seems important to enrich economic theory with pragmatic aspects. The article aims to interest economics students in the relationship between economic theory and economic practice.
 Novelty/Originality of the study: In the context of economic, financial and pandemic crises, considerations regarding the role and importance of economic theory and the scientific discipline itself are important. This is an attempt to answer the question to what extent the achievements of scientists in the field of economics allow us to effectively "get out of the crisis" and to what extent these are ad hoc actions. This is particularly important in the context of changing economic methodology and the relationship between heterodoxy and orthodoxy and the economy in times of uncertainty.