Steve Keen

Are students revolting, or is it economics?

Mainstream economists have long ignored the dynamics of private debt, money and banks to their detriment. Now more than ever, a realistic and non-orthodox approach to economics is needed.

The good, the bad and the ugly of the Murray inquiry

The Murray inquiry's observations on financial advice, household debt and super are commendable, but its boneheaded proposal for the government to underwrite RMBS is a concern.

CBA's Bankwest burden fuels the allegation fire

Ian Narev has blamed his bank's financial planning scandal on 'poor advice' from a few individuals, but renewed allegations around CBA's Bankwest buy are potentially far worse and may not be so easily brushed aside.

Abbott needs to take a tougher line on financial planners

The fraud scandal in Commonwealth Bank's financial planning division highlights how a systemic sales culture has taken root in the financial sector. ASIC needs to act, but the Coalition's weak response won't help matters.

Europe takes a battering for Brussels' stability and growth delusions

For Southern Europe to climb out of its Great Depression, Brussels needs to admit defeat and finally abandon its foolish policy of trying to eliminate government deficits at any cost.

Why Europe's austerity experiment is doomed to fail

The bureaucrats in Brussels are convinced austerity will get Europe back on track. But comparing Greece’s experience to that of the US, it’s clear that these measures just compound the problem by forcing the private sector to deleverage further.

Genius versus bricks-and-mortar in the head

In 1983, Australian Terry Crews developed the world's first laptop, but the banks didn't think it was a project worth funding. Three decades later, he's about to launch a new device – only this time he's not at the mercy of a brain-dead financial sector.

Why industrial strength is born from diversity

Mainstream economic theory has long suggested that countries which specialise in production can reap the benefits of trade, but new research indicates that it's better for countries to diversify.

Why Clive Palmer speaks budget sense

Clive Palmer's astute observation on Australia's level of private debt highlights a central flaw in Hockey's budget policy that could put the economy in danger of contraction.

Another budget bounty for the Lucky Party?

Will the Liberal Party’s historic economic fortune hold for this budget? Balancing Joe Hockey’s books would seem to require Australian private sector debt around 250 per cent of GDP by 2025. That’s not an off-the-planet outcome.

Taking stock of Wall Street's boom

Now at its highest value ever in nominal terms, the US stockmarket's rise appears unstoppable. But the Fed's taper is likely to dry up demand and dampen enthusiasm for equities.

Why a permanent budget surplus is a poor fiscal model

Economic modelling compares a balanced budget, a permanent surplus and a permanent deficit, and sheds some light on the most effective fiscal setting for Australia.

Should governments run budget surpluses?

The scale of Australia's public debt comes under heavy scrutiny in the Commission of Audit's report, which suggests that government spending is out of control. The evidence indicates otherwise.

Why Krugman needs a new school of thought

There is a need for a drastic change to the core of economic thinking, but Paul Krugman's misguided defence of mainstream theory will make dislodging the orthodoxy difficult.

The trouble with China's hot property

China’s industrial expansion rests largely on debt-fuelled real estate speculation. A burst property bubble could leave Beijing reeling from simultaneous council and business bankruptcies.

A sudden conversion of property bubble doubts

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

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

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

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.