by Summary:
Giving a "Nobel" Prize to Bernanke for his work on banks is like giving a Nobel Prize in Physics to a Flat-Earther.
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Steve Keen considers the following as important:
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Giving a "Nobel" Prize to Bernanke for his work on banks is like giving a Nobel Prize in Physics to a Flat-Earther.
Topics:
Steve Keen considers the following as important:
This could be interesting, too:
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| Giving a "Nobel" Prize to Bernanke for his work on banks is like giving a Nobel Prize in Physics to a Flat-Earther. |
I'm not sure if they're just lying or if they actually believe what they're saying.. I've read enough economics books to still be uncertain…
also… the flat earth joke killed me.. lol
They believe it! So the joke is "no joke"!
@ProfSteveKeen In the political mechanism, the soldiers must believe the lie.
Also: your channel is super
@Joe Projects Thanks Joe. Consider signing up to my Patreon https://www.patreon.com/ProfSteveKeen or Substack https://profstevekeen.substack.com/ sites to keep in touch with and support my work.
I’m curious to know what the MMTers think of your work and whether they employ Minsky to substantiate their arguments.
Btw, I personally think that your pioneering work in destroying neoclassical bs is beyond description!
Thanks. I'm encouraging MMTers to use Minsky: there's nothing better to illustrate their arguments. Sam Levey has started to use it, so maybe we're on the way.
Love your software tributes to economists to Minsky and Godley. Great to watch you build this example. Most intriguing for the model to move out savers at 21:30 How are termed deposits of savers factored in?
Term deposits are ones that banks can onlend: you know that when you make a deposit into one of those, that it is not a demand deposit. They are a complication to the simple model I built here, and only a relatively small fraction of demand deposits in the real world.
@Steve Keen thanks
@Steve Keen I was surprised to see that there were 11 Trillion in savings deposits in America 🙂
I enjoyed this, thanks for posting. Please keep it up. Would be curious about seeing a model that incorporates Money + Credit + income <–> spending + financial assets + savings. When interest rates go up, 1) credit goes down, which reduces spending and income. 2) when rates go up, financial assets go down due to present value effect, this drives up savings due to negative wealth effect, which lowers spending, which lowers income. Finally, income itself is lowered to due lower higher unemployment and lower spending. They each interplay with each other and seems to be a perfect setup for Minsky. Absent the initial interest rate reduction, income and spending feed each other in a wage-price spiral.
Coming up in the next video
Steven, after watching this series I binged on your other videos. Ross Ashcroft in the Manifesto video said you were good friends with the amazing Yanis Varoufakis. I saw him live at a debate – brilliant man. He has proposed the European Central Bank buy perpetual bonds off members so euro members would be able to meet the social and climate needs of the people. Is that consistent with the analysis in your workshops?
Yes, because unlike national governments with their own currencies, Euro states do need to sell bonds or raise taxes to fund their spending. Yanis's idea is a nice way to sidestep the problem.
@ProfSteveKeen thanks