This is the presentation I gave at the 2011 conference of the Society for the Advancement of Socio-Economics (SASE) annual conference in Madrid last week:
It combines four themes that will be prominent in my public talks from now on:
- Neoclassical economists don’t understand neoclassical economics;
- Neoclassical “representative agent” macroeconomics (both the so-called New Classical and New Keynesian variants) violate fundamental research by neoclassical economists into the foundations of neoclassical theory;
- The Credit Accelerator explains the Great Depression and the Great Recession (here my arguments are similar to those of Richard Koo, and the Credit Accelerator is the same concept initially derived by Biggs, Mayer and Pick that they called the Credit Impulse); and