Bernanke-Summers Debate II: Savings Glut, Investment Shortfall, Or Monty Python?

By | |

Flattr this!

A Twit­ter fol­low­er accused me of being “a lit­tle nasty” with my last blog post (see Fig­ure 1). He was right, and I don’t apol­o­gize.

I’ve spent 40 years try­ing to high­light just how lim­it­ed the dom­i­nant ideas in eco­nom­ics are. But even I didn’t ful­ly appre­ci­ate how tiny the intel­lec­tu­al gene pool behind these ideas was.

Then, as I start­ed to write a post on the eco­nom­ic issues in the Bernanke-Sum­mers debate, I re-read Sum­mers’ orig­i­nal sec­u­lar stag­na­tion post and real­ized that, not mere­ly were the ideas com­ing from a sin­gle per­spec­tive, most of the major pro­po­nents of these ideas came not only from the same Uni­ver­si­ty (MIT), and even the same sem­i­nar (Class 14462, con­duct­ed by Stan­ley Fish­er).

Click here to read the rest of this post.

Bookmark the permalink.

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.