Ann Pettifor in Australia

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Ann Pettifor is one of the handful of economists who predicted and warned about the financial crisis of 2007 well before it happened. Ann first came to prominence when she led the Jubilee 2000 campaign to abolish the debt of the world’s 42 poorest countries. She was one of the 12 nominees for the Revere Award; some of her pre-crisis comments that were highlighted there were:

Removing controls over the finance sector paved the way for its rise to dominance, which in turn has led to a transformation of the global economy and increased instability.

 [One of] the consequences for the global economy [is an] enormous increase (or ‘bubble’) in the stock of financial assets in relation to the real economy, as measured by GDP or the stock of physical, human, and technological capital.

 There will be a collapse in the credit system in the rich world, led by the United States

 Once default rates approach 1 per cent of the value of the debt across the whole lending spectrum, the profitability of banks is called into question. If default rates reach 2 per cent, the probability of a financial crisis rises appreciably.

Ann will be in Australia as a guest of the Search Foundation from early September. Ann is an excellent speaker, as well as a seriously well-informed analyst, and her talks will be well worth attending. For more details of her visit, please go to the Search website. For more information please contact Bronislava Lee at the SEARCH Foundation on (02) 9211 4164 or via email at

The following tour information was copied from the Search website. If any of the links don’t work, please go to the original page and book from there:


Public forum with Ann Pettifor (UK) and Mark Henley (UnitingCare Wesley Adelaide)
6.30pm, Thursday 1 September, Napier Lecture Theatre, University of Adelaide, $10/$5

Co-sponsored by the SEARCH Foundation, the Don Dunstan Foundation and the Conservation Council SA. Book online | Share on Facebook


Launch of “Babble in the Bar”, Inaugural Quarterly Trades Hall Gathering, with talk by Ann Pettifor (UK)
6-7pm, Friday 2 September, Bella Union Bar, Trades Hall. Drinks provided.

Co-sponsored by Victorian Trades Hall Council, SEARCH Foundation and the National Tertiary Education Union. RSVP to or (02) 9211 4164 by Wednesday 31 August.

Workshop for union climate activists and university students
10am-noon, Friday 2 September, Jim Potter Room, Old Physics Building – G16, University of Melbourne, Parkville


The National Tertiary Education Union is sponsoring a special workshop for its climate activists and university students on Friday morning in South Melbourne. Active members of other unions may also attend. For more information or to RSVP contact or (02) 9211 4164.

Community forum with Ann Pettifor (UK)
2-4pm, Saturday 3 September, New Internationalist Bookshop, Trades Hall


Public forum with Ann Pettifor (UK) and Ian Lowe (Griffith University)
6.30pm, Monday 5 September, Premiers’ Hall, Parliamentary Annexe, Cnr Alice & William Sts. Suggested donation $10/$5.

Supported by Senators Claire Moore and Larissa Waters and QLD MP Evan Moorhead and co-sponsored by the SEARCH Foundation, Queensland Conservation Council and the Green Institute. RSVP by 31 August to or (02) 9211 4164.

Workshop for union delegates
1-4pm Monday 5 September

The Australian Manufacturing Workers Union (AMWU) is hosting a special workshop for union delegates. Contact your union to ask if they are participating, or for more information contact or (02) 9211 4164.


Public forum with Ann Pettifor (UK) and Arthur Rorris (South Coast Labour Council)
6pm, Thursday 8 September, Tom Mann theatre, 136 Chalmers St, Surry Hills. Suggested donation $10/$5.

Co-sponsored by the SEARCH Foundation, Climate Action Network Australia, Catalyst, Greenpeace Australia-Pacific, Australian Services Union, South Coast Labour Council, Institute of Environmental Studies (UNSW), Society of Heterodox Economists, Institute for Sustainable Futures (UTS). RSVP by Monday 5 September to or 9211 4164.

Making the Boom Pay: If not now, when? Catalyst and Australia Institute Conference 
10am-4pm,  Thursday 8 September, featuring Ann Pettifor as one of the keynote speakers. For more details contact Catalyst on 8090 1177

Institute of Environmental Studies and Society of Heterodox Economists campus workshop
3-4.30pm, Thursday 8 September, Australian School of Business room 220, UNSW, Kensington. Free.

Plus special workshops for union delegates and NSW Parliament staff and MPs on Wednesday 7 September
Contact or 9211 4164 for more information.


Union and community workshop
9am-1pm, Friday 9 September, South Coast Labour Council Trade Union Centre, 1 Lowden  Sq, Wollongong. Free.

The training is open to all community members in the region who are interested in the Green Jobs project or the problem of climate change and ensuring the transition is effective. The half-day workshop will be practically-oriented with a focus on engaging the community on these issues. It will cover:

• How the transition can be financed and be socially, as well as environmentally, beneficial
• The roles of organised labour and industry groups in developing political momentum for change, and in the transition itself.

RSVP required by Wednesday 7 September to or (02) 9211 4164.

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.
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14 Responses to Ann Pettifor in Australia

  1. sj says:

    Mr Keen
    Helping poor corrupt countries abolished debt may sound a good honourable idea.
    The reality is far different you are keeping corrupt and violent governments in control so always be the status quo.
    You want these powerful voilent leaders gone you don’t offer them more money!
    These greedy corrupt powerful leaders will just put the country back into debt set up a billion dollar swiss account for their cronies.
    Save your money bloggers give your money to a homeless person you meet in the street atleast you know 100% of the money will go to that poor soul.
    Over 35% of charity money goes on administration costs expensive cars,houses and salaries of over $100,000.
    Please read the book POOR STORY
    An insider uncovers how globalisation and good intentions have failed the world’s poor.
    Author Giles Bolton.

  2. sirius says:


    Maybe some “real ethics” are in order ? (Another revolution?) 🙂

  3. elliottwave says:

    WOW EW you are great!!!!

    Thanks, but I TOLD YOU SO.


  4. MMitchell says:

    Warren Raftshol,

    I (and perhaps others) am not familiar with the parameters to your model. Could offer a short comment, in layman’s terms, explaining what is happening in your model and what factors would result in 75% rates?

  5. MMitchell:

    (1) u’/u =Ph(v)-?-p’/p

    (2) v’/v =(1-u)V/p-(?+?+?+p’/p)+r

    Real output is Q = aL. Then Q’/Q = a’/a+L’/L is the time rate of growth of the economy. a is labor productivity. a’/a is taken as constant a’/a =alpha = 2.5%/year in this example. L is the labor force and is equal to nv, n is population, v is employment percentage. L’/L = n’/n+v’/v, n’/n = beta =1.23%/year. p is the price level. p’/p is rate of inflation. Delta is annual rate of capital depreciation, taken here as 1%/year. u is the ratio W/pQ where W=wL and Q=aL. w is the nominal wage rate.

    Equation (1) is the Phillips curve equation for u. Since w’/w = Ph(v), written for u = w/(pa) is u’/u = Ph(v) – alpha – p’/p

    Equation (2) is a restatement of the quantity theory of money pQ = mV where m is the quantity of money and V is money velocity, V=V(r) =V(0)exp(rt) so V’/V is r, the real interest rate.

    m’/m = Q’/Q + p’/p – V’/V is the quantity theory of money in rate terms and says that the rate of money growth increases with growth of Q and p and decreases with growth of V. By regrouping the defined terms you end up with
    equation (2).

    p’/p is an exogenous input from history. r is (1-u)/u and is the real interest rate required to divert money from circulation um to investment (1-u)m

    Thanks for the question.

  6. should read

    (1) u’/u = Ph(v)-alpha -p’/p

    (2) v’/v = (1-u)V/p-(alpha+beta+delta+p’/p) – r

  7. correctiom again

    (2) v’/v = (1-u)V/p – (alpha+beta+delta+p’/p) + r

  8. alainton says:

    Ive been reading a fair bit in last few days of how a great debt reset, by whatever means, might be our only option – heterodoxy in mainstream in a few short months. George Magnus, another member of the ‘I told you so’ club has said as much in the last 24 hrs.

    Here’s Brain Rogers of Fator Securities

    ‘ Until the world finally realizes that the concentration of leverage that currently sits on the balance sheets of the world’s largest 15-20 banks is the source of our global instability and protecting these same banks is literally cutting off our nose to spite our face, we will continue to suffer huge bouts of “risk-on/risk-off” madness. …

    Perhaps the best option here is for the US and Europe to join hands and craft a global balance sheet reorganization, aka The Great Reset, bilaterally. At over 50% of global GDP, anything the US and Europe did together would almost certainly be influential enough to bring the rest of the world on board. Think Bretton Woods III. Yes, this would mean debt write-offs and the nationalization of the banks. ‘

    Indeed in my view either we eliminate debt in a planned way or bank failure and sovereign debt default will do it anyway in a catesptrophic way, especially if it knocks he BRAIN economies over the edge, as seems likely through collapse in their export markets.

    What might such a planned approach look like – some thoughts

    What we really need though is a model – to demonstrate how it could work. It is difficult if not impossible to model debt contagion amongst banks without a lot of work on iffy data. But it would be possible to model the effect of a collapse of some of the largest and most debt laden financial institutions, the cnacellation of consumer debt and the refinancing of small depositor balance sheets through horizontal money – thoughts?

  9. alainton says:

    Some breathtaking complacency by Stephen Williamson on his blog in reviewing Quiggan

    ‘Like the “efficient markets hypothesis,” DSGE has no implications, and therefore can’t be wrong. Indeed DSGE encompasses essentially all of modern macroeconomics. …Granted, some of our models were not so helpful in making sense of the financial crisis. But others were, and some of the models that were not helpful could be (and are being) modified so that they are.’

    I can see that quote being put into powerpoint slides to amuse students already

  10. alainton says:

    Oh and heres a summary of the reaction on the blogosphere to Williamson’s comment

  11. Steve Keen says:

    I agree Andrew,

    As for modelling it, that is feasible–I might give that a try in a month or two when I have some spare time.

  12. MMitchell says:

    Thanks Warren,

    However, I think I would still benefit from a more descriptive analysis of what is happening in your model. It is one thing to have the equations, but quite another to understand the context and implications of them and their terms. But perhaps this really requires a more substantial effort of understanding and reading yoru sources on my half.

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