What are the criticisms againt Keynesian theory of unemployment in LDC's (Least Developed Countries)?

Answer 1

Keynesian theory, which developed in post WWII, requires idle capacity of production of the country to take effect. It is then that monetary expansive policies actually generate economic growth, as increased consumption is absorbed by idle capacity and ample workforce. However, LDC's don't have excess capacity, so monetary expansive policies usually only end up generating inflation.

Answer 2

In LDC´s are no reasonable critics to Keynesian theory. This is a principle problem. Just have a look what the people answer, when you ask about a working health care system in the states... it´s ideolical forbidden in here to think about other theories than Milton´s Chicago School.
Basicly Keynes didn´t state anything else, than the idea that the state is and should be able to bring benefits to the people. But this is nothing you can introduce to politics. Maybe in Europe´s development politics, but never in US

Answer 3

In developed nations, unemployment rates tend to be correlated with deflationary economies. This deflation is offset by inflating the currency.

Deflation doesn't tend to be a problem in most developing nations, as the large debt burdens and lax currency controls tend to cause inflationary economies.

The bigger problem in these countries is that lenders loan money to corrupt governments instead of groups of local businesses.