Keen Debunking Economics Oxford 2011 Monbiot Seminar

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.

Category:

Education

Tags:

• Steve Keen
• Debunking Economics
• macroeconomics
• critique
• Neoclassical economics
• Post Keynesian economics
• monetary economics
• debt deflation
• economic crisis
• economics
• University Of Oxford
• Financial Crisis

[KenMacMillan]

Money Nuts

/watch?v=wPZNeMG79xA

[JoanDenoo]

Of course not all debts should be forgiven, but the loans that should never have happened should be considered; the borrowers who claimed more income than they had and that could not have supported the loan should be taken into account. Truth telling on both sides should be the ones who should be considered. Oh dear, I can see an endless rounds of law suits ahead. Therefore, what options are available?

[KenMacMillan]

@whoo689 Besides, what do you think we should do, just give all those people free houses?

[KenMacMillan]

The link in the description doesn't work.

[KenMacMillan]

@whoo689 Those loans never should have happened in the first place.

[whoo689]

Or people who say there's nothing wrong with letting all these foreclosures happen, "Because we have to let the housing market naturally correct itself."

What IS this "market"? IT'S US! WE are the market. We make the transactions, buy the products, invest, etc.

[whoo689]

The main problem with most economic models that are popular today is that THEY DON'T INCLUDE PEOPLE in the equations (what they do, how they react, etc.). They just ASSUME the people don't really matter and treat them as secondary to all the data and figures. This is probably why so many neoclassicals and ideological conservatives say crap like, "Let the big banks fail! Who cares if it ruins the economy", even though it would've HURT the American people big time.

[justnotcricket]

Professor, if you're rather sceptical of the idea of bureaucrats of being responsible for the money supply how would you feel about the idea of turning the whole system into a mechanical process? I gather Hayek offered something similar. Also since it's essentially rich uncles (angel investors) & the like that now finance the most dynamic capitalist entrepreneurship (silicon valley) & govt science & tech research that funds most of the innovation, I feel it needs to be asked; Do we need banks?

[mrzack888]

@DavidAKZ yeah, that's right, my bad, whut was i thinking. the 1% are the most important.

[DavidAKZ]

@tcotme Yes, it is a zero sum solution. However because asset values are debt baced, you are approach zero from below. Not above.