New Zealand Seminar: Schumpeter, Minsky & Endogenous Money

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This is prob­a­bly the most detailed sem­i­nar I have giv­en on my views on mon­e­tary macro­eco­nom­ics. I begin with the data that, back in Decem­ber 2005, led me to expect that a huge eco­nom­ic cri­sis was immi­nent: the ratio of pri­vate debt to GDP. Then I explain why this ratio mat­ters, in con­trast to the argu­ments that Neo­clas­si­cal econ­o­mists put that only the dis­tri­b­u­tion of debt mat­ters. This takes me through the empir­i­cal data, the the­o­ries of Schum­peter and Min­sky, and the math­e­mat­ics need­ed to prove that “aggre­gate demand equals income plus the change in debt” is cor­rect, and that this does not involve dou­ble-count­ing.

Sec­ond sec­tion

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About Steve Keen

I am Professor of Economics and Head of Economics, History and Politics at Kingston University London, and a long time critic of conventional economic thought. As well as attacking mainstream thought in Debunking Economics, I am also developing an alternative dynamic approach to economic modelling. The key issue I am tackling here is the prospect for a debt-deflation on the back of the enormous private debts accumulated globally, and our very low rate of inflation.