The Global Financial Crisis Is Not Behind Us

The fundamental cause of the Global Financial Crisis was the excessive level of private debt. The deleveraging has been slowed to some degree by government action, but the need for that deleveraging has not been removed. A majority of the 16 individuals identified in Bezemer (2009) and (Fullbrook (2010)) as having anticipated the Global Financial Crisis followed non-mainstream approaches to economics, with most of them identifying as Post-Keynesian (Dean Baker, Wynne Godley, Michael Hudson, Steve Keen, Ann Pettifor) or Austrian (Kurt Richelbacher, Peter Schiff). The theoretical foundations of these authors therefore differ substantially from those of more mainstream neoclassical economists. This paper focuses on the Post-Keynesian subset, hereinafter referred to as the Bezemer-Fullbrook Group.