Steve Keen’s Debt Watch

My speech to the Occupy Sydney Rally begins 10 minutes into this video. The opening includes a Welcome to Country.

This seminar led to George Monbiot's Guardian feature (http://www.guardian.co.uk/commentisfree/2011/oct/10/stop-another-great-depression-debt). As well as outlining my critique of Neoclassical macroeconomics, I explain my credit-based analysis. The discussion at the end about the role of aggregate debt is enlightening in that it shows how most economists can't comprehend that the aggregate level of debt matters.

I use the model developed in the first half to show that money is not neutral in a credit-based economy--a higher rate of money creation results in a fall in unemployment--and also model a credit crunch. I also model two government policies to counter a crunch: giving money to the banks (which Obama did) and giving it to the debtors (which the Australian government did). Conventional money multiplier theory argues that the former is more effective; I show that the latter is about three times...

I continue the development of the QED model of a pure credit economy began in the last lecture, including modelling production and developing a pricing equation to produce a combined monetary-physical model. The initial model has a fixed wage, population and labor productivity. To prepare the way for making these variables, I explain what Bill Phillips of "The Phillips Curve" was really trying to do: to drag economists into the modern era by teaching them how to model the economy dynamically.

Explaining the "Monetary Circuit Theory" of capitalism. I show that the dilemmas that hobbled Circuit Theory for so long were simple mistakes in dynamic modelling, which reflect poorly not so much on Circuit theorists themselves, but economists in general, since even non-orthodox economists are locked into the static ways of thinking they were taught by neoclassical lecturers.

Extending the model developed in the first half of the lecture to include payment of wages and consumption. The resulting model "works" in that it is possible for capitalists to borrow money, produce output, and make a profit.

My speech and Ann Pettifor's speech at the launch of the 2nd edition of Debunking Economics, at the University College London on October 4 2011. I give an overview of the new edition, which focuses on the absurd state of neoclassical macroeconomic theory and the reasons that conventional economists were the last people on the planet to realize that a serious economic crisis was about to occur. I also outline my "Monetary Circuit Theory" approach that let me anticipate the crisis. Ann...

A video of the inspiration behind the Minsky program, whose development is being funded by the Institute for New Economic Thinking.

The fact that Australia didn't experience a bad recession during the GFC is sometimes attributed to its better regulatory system. It would be a miracle were that true, since the Wallis Committee and all government interventions up until 2008 were done to reduce regulation, not strengthen it.

Endogenous money is an established empirical fact, but a seriously underdeveloped concept in economics. In this lecture I cover some of the foundational disputes that marked the development of the concept, and then introduce Graziani's brilliant concept of the Monetary Circuit as a foundation for a monetary model of capitalism.