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
- The “Monetary Circuit Theory” model (my thanks to Mike Honeychurch for suggesting this name for my approach).
I had some software hassles–I changed the screen resolution after loading my screen capture program, which caused it to crash!–so I had to “dub” the talk later, and so there’s a bit of chatter about that at the start, and the sound levels are rather low. So my apologies, but it’s all I had time for when also coping with a brand new HP laptop that has been having BSOD events so regularly that I am now pining for Mephistopheles, my Dell laptop that I left back in Sydney.
In the 30 minutes I had, I only covered about half the material in the Powerpoint slides; a similar issue will apply when I present at the Central Bank of Argentina’s annual conference on Thursday. Hopefully one day I’ll get the chance to present this talk over an hour or so, which would be needed to cover all the information in it.