A new book called Demand Side Economics, by Alan Harvey, has been released. It dealing with some of the visionary thinkers behind changing conventional economic theory for the better.
Alan introduces the book saying:
‘The purpose of this book is to lay out an economics that makes sense of history, including the revolutionary history of the present time. This “Demand Side” economics is not new. It was originated and developed by the great British economist John Maynard Keynes and by the acolytes of the pragmatic programs of the New Deal. It is called Demand Side economics because demand is the fundamental driver of economic progress and constraint in economic stagnation. The organization of demand is the organization of the economy. What is demanded is what is supplied, in scale and in selection. Employment, investment, growth and development occur along the path of what is demanded. That demand can be for public or private goods. We describe and display the demand side framework by following its development through the thought of a series of influential economists, beginning with Keynes and ending with Steve Keen and Nouriel Roubini. Through their work, concepts and analytical tools we can look in on the development of the modern economy since 1930.’
Chapter 11 is Steve’s feature chapter entitled, Steve Keen and the Great Recession, opening with a quote:
‘The main constraint facing capitalist economies is not supply, but demand.’
Alan accredits Steve’s demand side thinking to an understanding of Hyman Minsky’s Financial Instability Hypothesis and my background training in mathematics. Suggesting that Steve;
‘…took advantage of the most advanced computerized dynamic modeling software and produced remarkably accurate predictions from assumptions derived and developed from Minsky. The general equilibrium model of most forecasters, even after decades of development, produces little more than noise.’
For more information, visit the Demand Side Economics website.