Steve Keen, Secular Stagnation and Thoughts on IS-LM

Steve Keen has produced a nice little article on secular stagnation as an explanation of the crisis, as brought up by Larry Summers and then endorsed by Paul Krugman, and its clash with the theory of endogenous money.

Keynes and the Europeans: Similarities of ICU and EMU

by Dirk Ehnts, Econoblog101 The International Clearing Union (also called Bancor plan) that Keynes proposed at the Bretton Woods conference has received some renewed interest over the years, culminating in the EMU’s macroeconomic imbalance procedure which is at least partly based on the ideas of Keynes. Countries with deficits higher than 4% of GDP or …

Krugman Doesn’t Understand IS-LM, Part 2

by Steve Keen, Debunking Economics Read Part 1. Krugman’s explanation of our crisis today is straight from the pages of John Hicks’ (pictured) 1937 explanation of the Great Depression (though curiously, Hicks himself didn’t mention the actual state of the global economy at all in his 1937 paper, which attempted to explain the relationship between …

Krugman Doesn’t Understand IS-LM, Part 1

by Steve Keen, Debt Watch Read Part 2. Krugman describes himself as a “sorta-kinda New Keynesian” (Krugman 2012, p. 104), and explains in End This Depression NOW! (Krugman 2012) that New Keynesian macroeconomics evolved in reaction to the failure of the New Classical approach to “explain the basic facts of recessions” (Krugman 2012, p. 103). His …

A Primer on Minsky

by Steve Keen, Debt Watch Editor’s Note: This is the article that started the recent “Keen-Krugman War.”  We will post more on this important economic discussion in the coming days. My paper “Instability in Financial Markets: Sources and Remedies” for the INET conference “Paradigm Lost: Rethinking Economics and Politics“, to be held in Berlin on …