Steve Keen’s Debt Watch

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...

This workshop builds Goodwin's cyclical growth model in Minsky, using the "flowchart" side of the program, which it shares in common with all other system dynamics programs.

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.

Giving a "Nobel" Prize to Bernanke for his work on banks is like giving a Nobel Prize in Physics to a Flat-Earther.

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.

This workshop uses Minsky to show the structure of a mixed fiat-credit economy, and easily dispels numerous myths about money.

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...

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...

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...

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...