Written by John Lounsbury
Econintersect: Steve Keen reviews reviews widely used concepts in economics which persist as ‘bad habits’, unsupported by empirical logic. He compares the difficulty in shedding these bad habits to quitting smoking. Without exceptional individual motivation one does not quit smoking if has become an ingrained habit.
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One point Prof. Keen emphasizes is the fallacious assumption that economic systems spend most of the time in equilibrium. He demonstrates how the empirical data from the economy clearly reveals consistent patterns of disequilibrium.
Source: YouTube