Written by John Lounsbury
About one year ago Steve Keen discussed money, the economy, and the causes of financial crisis at the Bournemouth Labour Party members’ meeting.
Please share this article – Go to very top of page, right hand side, for social media buttons.
From Wikipedia:
Steve Keen (born 28 March 1953) is an Australian economist and author. He considers himself a post-Keynesian, criticising neoclassical economics as inconsistent, unscientific and empirically unsupported. The major influences on Keen’s thinking about economics include John Maynard Keynes, Karl Marx, Hyman Minsky, Piero Sraffa, Augusto Graziani, Joseph Alois Schumpeter, Thorstein Veblen, and Francois Quesnay. Hyman Minsky’s financial instability hypothesis forms the main basis of his major contribution to economics[1] which mainly concentrates on mathematical modelling and simulation of financial instability. He is a notable critic of the Australian property bubble, as he sees it.
Keen was formerly an associate professor of economics at University of Western Sydney, until he applied for voluntary redundancy in 2013, due to the closure of the economics program at the university.[2] In autumn 2014, he became a professor and Head of the School of Economics, History and Politics at Kingston University in London. He is also a fellow at the Centre for Policy Development.
Most of Steve Keen’s recent work focuses on modeling Hyman Minsky’s financial instability hypothesis and Irving Fisher‘s debt deflation.[3][4] The hypothesis predicts that an overly large private debt to GDP ratio can cause deflation and depression. Here, the falling of the price level results in a continually rising real quantity of outstanding debt. Moreover, the continued deleveraging of outstanding debts increases the rate of deflation. Thus, debt and deflation act on and react to one another, resulting in a debt-deflation spiral. The outcome is a depression. Steve Keen argues that the current global economic crisis is the result of too much private debt.
The Wikipedia record is correct as of third quarter 2018. Since October 2018 Steve has been Honorary Professor at UCL (University College London).
The video is 27 minutes long and effectively uses simple visuals to explain the monetary balances and flows within an economy and how the private sectors of the economy are different from the government.
Source: YouTube
Related Articles
- Documentary Of The Week: The Failure Of Neo-classical Economics (17 December 2020)
- Introduction To The New Economics: A Manifesto (04 November 2020)
- Documentary Of The Week: Thermodynamics And Economics (25 June 2020)
- FIH: Emergent Property Of Complex Systems’ Macroeconomics – Part 1 (15 December 2019)
- Ibid – Part 2 (15 December 2019)
- Ibid – Part 3 (16 December 2019)
- Ibid – Part 4 (17 December 2019)
- Ibid – Part 5 (18 December 2019)
Econintersect note: FIH = Financial Instability Hypothesis (Hyman Minsky).
Econintersect note: Steve Keen is conducting a Patreon campaign to enlist financial support that enables him to continue his unique research outside of the academic world heretofore his home. Econintersect strongly endorses this campaign.
.
include(“/home/aleta/public_html/files/ad_openx.htm”); ?>
