Steve Keen

A sudden conversion of property bubble doubts

40 comments
Christopher Joye and others who argued stridently against a housing bubble are now warning on overheated prices. Have debt conditions changed, or commentators' attitudes to them?

How not to win an economic argument

9 comments
Criticising economic models without paying attention to the context in which they're produced is like debating a word without a sentence -- amusing, but ultimately pointless.

Why the US can't escape Minsky

2 comments
The US economy has come through its recent 'Minsky moment' but now it's back at the beginning of another Minsky cycle, with debt growing at around twice the pace of real GDP.

Putting China's dramatic transformation into perspective

1 comment
Over the course of three decades, I've seen China's home runs balance out a few truly weird economic moments.

The BoE's sharp shock to monetary illusions

5 comments
According to the Bank of England's view of the way money is created, most economic textbooks are wrong. Leading economists can no longer ignore the myths.

Have universities gone bureaucrazy?

5 comments
For each university research project funded, up to five times as much is spent on proposals that will never see the light of day. And that's just the start of the waste.

Closing the door on the GFC

8 comments
The private debt deleveraging that caused the GFC appears to be over. But there’s an ominous underlying trend central banks are ignoring.

Godzilla is good for you?

2 comments
The bigger the financial sector gets, the more it can destroy. And Mark Carney's vision of British banks nine times the size of GDP is positively terrifying.

Australia is asleep at the wheel

7 comments
While American households delivered during the GFC Australians continued to borrow. Now the Reserve Bank’s take on private debt acceleration is reminiscent of the Fed before it was proven wrong.

Spinning wheels and shaky deals

2 comments
Perhaps Australia never had a true auto industry at all. That's the fault of employment strategies which fatally misunderstood economies of scale.

Why Australia's economic debate doesn't rate

24 comments
Contrary to the RBA's primitive belief, there's more to controlling the economy than tinkering with the interest rate. Rates alone won't correct the conflicting signals emitted by the housing bubble, the dollar and inflation.

I know my place

16 comments
The UK is, in historical terms, growing at a 'Ronnie Corbett' rather than a 'John Cleese' rate. But its headroom to sustain some drivers of this growth is limited.

Why economists are almost always wrong

27 comments
Rational behaviour is not considering all options and picking the best, but simplifying complex choices to make a sensible decision in finite time.

Bye-bye, Bernanke

14 comments
Ben Bernanke has vocally criticised the Fed’s 1930s actions. But based on his theories, the outgoing chairman could be found guilty of causing the Great Recession.

Augusto Graziani’s legacy retains its currency

8 comments
The recent passing of economist Augusto Graziani has received little attention, but his insights on the monetary economy were fundamental in shaping post-Keynesian thinkers.

Blowing bubbles and the stagnation puzzle

31 comments
Finally, mainstream economists are beginning to accept the reality of secular stagnation. But are permanent government deficits and asset bubbles the only solution?

Why Australia must avoid austerity

95 comments
The devastating economic effects of using austerity measures during a private sector downturn are very clear in Europe. Calls for Australia to do the same to address the budget deficit are misguided and dangerous.

Oh my, Paul Krugman edition

17 comments
Paul Krugman has previously rejected the argument that new debt creates aggregate demand, but recent musings suggest a major shift in his thinking on the subject.

When economic theory fails the maths exam

21 comments
Research suggests when an issue is politically charged a high level of numeracy works against understanding it. This explains why many economists still ignore the numerical evidence of what caused the GFC.

A neverending debt trap

30 comments
Larry Summers has argued that we are entering a period where the only way economies will be kept afloat is through debt-driven bubbles. Classical economists say debt shouldn't matter but history tells a different story.

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