Behavioral Finance Lecture 11: The Economic Crisis

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Pow­er­point file for this lec­ture: Debt­watch Sub­scribers; CfE­SI sub­scribers

This lec­ture con­cludes my 11 lec­ture course on behav­ioral eco­nom­ics & finance and endoge­nous mon­ey. In it I give an overview of the Depres­sion we are now in, and com­pare it to that of the 1930s. I also cov­er the fail­ure of neo­clas­si­cal econ­o­mists to see this cri­sis com­ing: the remark­able thing was not that I and a hand­ful of oth­ers saw this cri­sis com­ing, but that so many neo­clas­si­cal econ­o­mists had no idea it was approach­ing. I explain why they failed to see it (by ignor­ing pri­vate debt and believ­ing in a fan­ta­sy of eco­nom­ic equi­lib­ri­um), dis­cuss the empir­i­cal dimen­sions of this cri­sis in com­par­i­son with the Great Depres­sion, and present my explic­it­ly mon­e­tary macro­eco­nom­ic mod­el.

I have also, on the advice of a very sen­si­ble Youtube sub­scriber, put these 11 lec­tures into a Playlist:

Behav­ioral Finance Lec­tures

This organ­is­es the 11 lec­tures, mak­ing it eas­i­er to find and fol­low them in sequence.

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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.