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Steve Keen

Steve Keen

Steve Keen (born 28 March 1953) is an Australian-born, British-based 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 François Quesnay.

Videos by Steve Keen

Professor Steve Keen and Friends

Professor Steve Keen is an internationally recognized Economist. Described by Vox Day and Daniel Sanderson as "the greatest living economist", this video series is designed to bring out Steve’s natural humility. Joined by regular guests Daniel Sanderson and Tyrone Keynes (Ty), the series will oscillate between friendly banter and economic excellence.

WARNING: if you are a close-minded neoclassical economist, climate denier, or generally an angry person, this show is NOT for you. Hecklers will be ridiculed and escorted off the live stream.

This series is for you if you value systems thinking and the capacity to critically assess your own beliefs.

The previous iteration of this show was called COVID and Climate Correlation and featured special guests such as Jørgen Randers, Ian

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Friede Gard Prize Lecture 05 Energy In Production Functions

Both Neoclassical and Post Keynesian economic models have been "energy blind": postulating output from inputs of Technology, Labor and Capital, but ignoring energy (and matter, for that matter…).

In this lecture I show how tautological and wrong the Cobb Douglas Production Function is, and that incorporating energy into it does enormous damage to the Neoclassical paradigm. On the other hand, the empirically-based Leontief Production Function only needs to acknowledge that what has been called the "Capital-Output Ratio" is in fact the inverse of "the efficiency with which machinery turns energy into useful work", and Post-Keynesian economic models are now energy-aware.

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Friede Gard Prize Workshop 04 Goodwin To Minsky

In this very short video (for me! Under 15 minutes), I show how to add private debt to the Goodwin cyclical growth model that I built in the previous workshop. The result is a model of Minsky’s Financial Instability Hypothesis.

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Friede Gard Lecture 04 The Fantasy Production Function

The "Cobb-Douglas Production Function" dominates Neoclassical macroeconomic models today. Decades ago, Anwar Shaikh showed that it’s "excellent fit to national data" occurred because it is simply a transformation of wage and profit data under conditions of a slowly changing distribution of income, while Mankiw showed that to fit international data, the coefficient for capital had to be increased from 0.3 to at least 0.8.

My insight that "labour without energy is a corpse; capital without energy is a sculpture" shows that, when energy is included, the exponent for energy has to be about ten times the value Neoclassical economists use, and the best fit to the data comes from the Leontief Production Function that is used by Post Keynesian economists.

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Friede Gard Lecture 03 Market Demand Curve

The vision of consumers as utility-maximizers, and the downward sloping market demand curve–so that the quantity demanded of a product rises as its price falls–both seem so plausible.

But the former has been contradicted by a very well-structured experiment, while the latter cannot be derived mathematically without incorporating the distribution of income as a fundamental aspect of economics–and Neoclassical microeconomics ignores the distribution of income.

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Friede Gard Lecture 02 Falling Marginal Cost

One of the many signs of the disconnect between Neoclassical economics and the real world is the theory of supply and demand, which has rising marginal cost meeting falling marginal revenue to determine both quantity and price.

A century’s worth of empirical research has shown that real-world firms have constant or falling marginal cost–not the rising marginal cost fantasy of textbooks–because, thank god, factories are designed by engineers rather than by economists.

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Friede Gard Prize Lecture01: Banks, Money, and Credit

I was awarded the Friede Gard Prize for Sustainable Economics in 2022 (see https://www.umwelt-campus.de/campus/aktuelles/news/news-details/friede-gard-preis-2022). After the award ceremony on October 13th, I gave a set of lectures and workshops. I didn’t complete the entire set as planned, so I am now re-recoding them and posting one each week for the next couple of months.

In this lecture, I prove that credit–the annual change in private debt–is part of aggregate demand and income in a world in which banks originate both debt and money: and that’s the world in which we live.

Neoclassicals insist on modelling a fantasy world in which banks are "financial intermediaries" between savers and borrowers, with the award of the 2022 "Nobel Prize" in economics to Ben Bernanke being the latest

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Macroeconomic Dynamics and Energy In Minsky Poznan Summer School 2022

I cover complexity, which is why macroeconomics cannot be derived from microeconomics; the alternative and much simpler macrofoundations of macroeconomics; how Minsky’s Financial Instability Hypothesis drops out naturally from the three key definitions–the employment rate, the wages share of GDP, and the private debt to GDP ratio; then how Neoclassical economics can’t integrate energy into its production function without destroying their theory of income distribution; how all Post Keynesians have to to is treat the "capital output ratio" as the inverse of the efficiency with which machines turn energy into useful work; and two models of production, one with energy and the other with energy and matter.

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MMT in Minsky at the 2nd Poznan MMT Summer School 2022

This is a live demonstration of using the free, Open Source system dynamics program Minsky to illustrate the fundamental points of "Modern Monetary Theory". As I say at the end, Minsky is my gift to the #MMT community, and I would be delighted if MMT advocates adopt it to establish the fundamental insights of MMT that flow from the strictly correct accounting of financial stocks and flows that Minsky enables.

I use the latest beta version of Minsky, which you can download from https://sourceforge.net/projects/minsky/files/beta%20builds/. This version implements Minsky’s front end in the Javascript programming language, replacing the Linux-based Tcl/Tk front end the program has had since its inception in 2012. We will very soon release version 3.0 of Minsky, so before you download,

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Keko Pitch

Sister Keko Mary Stella explains the work of ARDOC.

ARDOC started as a women led Community Based Organization formed and run by a group of community Volunteers, irrespective of their race, culture, religion or social status.

The organization was formed in 2015 by 5 volunteers who were concerned about vulnerable young mothers and poor youth who had lost a sense of belonging as a result of the aftermath of chronic poverty, illiteracy, early pregnancy and other economic challenges.

At that time, ARDOC served as a platform for experience sharing and comfort. Little did these members know that the 5-member group would one day become a big Community Based Organization serving and empowering hundreds of vulnerable young mothers and youth from disadvantaged families and communities of Tororo

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"How the man who predicted 2008 sees current events"

That very provocative title was set for me by my hosts at the Regegeration conference I spoke at in Warsaw last week. They also gave me very little time–15 minutes, to be precise. So I put a number of "jump points" in the video to jump over lengthy explanations of arguments.

This video reproduces that structure (but in 30 minutes rather than 15).

In one or several subsequent videos, I’ll provide the detailed explanations that I skip over here.

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Steve Keen Housing

There’s no such thing as expensive affordable housing. House prices have to fall. We have worked out how to do that without losing home owner equity, and while benefiting renters.

Share widely!

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Steve Keen Climate Change

Economists have misled politicians on global warming: the threat is far worse and far more immediate than they think.

Please share widely

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Another LIVE event with Professor Steve Keen — Join us for a discussion

From the Climate and COVID and Climate Correlations, the New Economics (2021) of Professor Steve Keen is the topic of this weekly series. Minsky software walkthroughs are common, so come by, we want to hear what you have to say.

We are always looking for new and novel ways to look at a complex subject or to the issues that matter to us most. This video is about all of this and more.

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Correcting the Economic Blindspot on Energy

This is a talk I gave to the INET (Institute for New Economic Thinking) group at Oxford University, which is headed by Eric Beinhocker. The Abstract of the talk is below.

I open with a dilemma–how do economists derive such limited damages from climate change? The answer is–they made those number up, without taking account of the much more serious warnings by scientists. One of the reasons that economists could not understand how global warming would damage the economy is that they do not understand the role of energy in production.

In particular, the dominant "model of production" that economists use, the Cobb Douglas Production Function, has no inherent role for energy, and when economists attempt to incorporate energy, they treat it as a third "factor of production", which

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Another LIVE event with Professor Steve Keen — Join us for a discussion

From the Climate and COVID and Climate Correlations, the New Economics (2021) of Professor Steve Keen is the topic of this weekly series. Minsky software walkthroughs are common, so come by, we want to hear what you have to say.

We are always looking for new and novel ways to look at a complex subject or to the issues that matter to us most. This video is about all of this and more.

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Another LIVE event with Professor Steve Keen — Join us for a discussion

From the Climate and COVID and Climate Correlations, the New Economics (2021) of Professor Steve Keen is the topic of this weekly series. Minsky software walkthroughs are common, so come by, we want to hear what you have to say.

We are always looking for new and novel ways to look at a complex subject or to the issues that matter to us most. This video is about all of this and more.

View more

Another LIVE event with Professor Steve Keen — Join us for a discussion

From the Climate and COVID and Climate Correlations, the New Economics (2021) of Professor Steve Keen is the topic of this weekly series. Minsky software walkthroughs are common, so come by, we want to hear what you have to say.

We are always looking for new and novel ways to look at a complex subject or to the issues that matter to us most. This video is about all of this and more.

View more

Another LIVE event with Professor Steve Keen — Join us for a discussion

From the Climate and COVID and Climate Correlations, the New Economics (2021) of Professor Steve Keen is the topic of this weekly series. Minsky software walkthroughs are common, so come by, we want to hear what you have to say.

We are always looking for new and novel ways to look at a complex subject or to the issues that matter to us most. This video is about all of this and more.

View more

Another LIVE event with Professor Steve Keen — Join us for a discussion

From the Climate and COVID and Climate Correlations, the New Economics (2021) of Professor Steve Keen is the topic of this weekly series. Minsky software walkthroughs are common, so come by, we want to hear what you have to say.

We are always looking for new and novel ways to look at a complex subject or to the issues that matter to us most. This video is about all of this and more.

View more

Another LIVE event with Professor Steve Keen — Join us for a discussion

From the Climate and COVID and Climate Correlations, the New Economics (2021) of Professor Steve Keen is the topic of this weekly series. Minsky software walkthroughs are common, so come by, we want to hear what you have to say.

We are always looking for new and novel ways to look at a complex subject or to the issues that matter to us most. This video is about all of this and more.

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Another planksip LIVE event with Professor Steve Keen — Join us for a discussion

From the Climate and COVID and Climate Correlations, the New Economics (2021) of Professor Steve Keen is the topic of this weekly series. Minsky software walkthroughs are common, so come by, we want to hear what you have to say.

We are always looking for new and novel ways to look at a complex subject or to the issues that matter to us most. This video is about all of this and more.

View more