BBC Inter­views on QE Today

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I’m being inter­viewed about the Fed­eral Reserve’s QE3 announce­ment today on BBC Radio:

6.15AM GMT on BBC Radio 4 BBC Busi­ness Daily LIVE
8.32AM GMT on BBC World Ser­vice

If you’re not in the UK, you can lis­ten online:

BBC Radio 4 LIVE

BBC World Ser­vice

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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  • Tom Brown


    Do you respond some­where to the crit­i­cisms of the 1st edi­tion of “Debunk­ing Eco­nom­ics” by Christo­pher Auld in his 2002 paper “Debunk­ing Debunk­ing Eco­nom­ics?”



    (Also crit­i­cisms by Matt Nolan and Paul Walker)

  • Yes Tom. In fact a very recent blog post was on this topic:

    You will also find a com­plete state­ment of my analy­sis in this online acces­si­ble paper:

    As I note in the blog post, Auld attacks my crit­i­cism of Mar­shall by defend­ing Cournot. That’s a bit like attack­ing a crit­i­cism of mod­ern art by prais­ing Leonardo da Vinci. I was never argu­ing that the Cournot model was wrong: instead I was argu­ing that the Mar­shal­lian model was wrong, and that it should not be taught. As a con­se­quence of Auld’s attack (and oth­ers like it) Rus­sell and I actu­ally extended our cri­tique to the issue of the sta­bil­ity of the Cournot-Nash equi­lib­rium as well, and showed that it was locally unsta­ble.

  • Whoops–getting my blogs mixed up. That arti­cle will appear on Busi­ness Spec­ta­tor next week, and be linked to from here.

  • TruthIs­ThereIs­NoTruth

    This is inter­est­ing from Nolan, any thoughts? btw, I think when the debate gets emo­tional and per­sonal it also becomes irra­tional…

    Fisher wasn’t wrong – but he was dis­cussing an econ­omy under the gold stan­dard … so it was an entirely dif­fer­ent mon­e­tary regime that meant that in the face of this large non-mon­e­tary shock, the sys­tem cre­ated defla­tion. Sure enough, we don’t have that sort of sys­tem now – and we haven’t seen the mass defla­tion that we did dur­ing the Great Depres­sion. The mon­e­tary regime now is a lot bet­ter, and out­side of the ECB the lender of last resort func­tion is widely accepted”

  • Well, I’d see the GD as a large endoge­nous mon­e­tary “shock” to begin with, and the gold stan­dard had a role, but was not the causa cau­sans. The LOLR and sim­i­lar poli­cies now are part of why the defla­tion didn’t per­sist this time, but so too is the dis­tri­b­u­tion of debt: 125% debt/gdp ratio for the cor­po­rate sec­tor back then ver­sus 70% now.

  • Derek R

    Any­one who missed the 14th Sept 2012 inter­views can still hear them for the next few days. Here is a link to Steve’s Busi­ness Daily inter­view. Accord­ing to the BBC World Ser­vice web­site it will be valid until 20th Sept 2012

    The Today pro­gram on Radio 4 for 14th Sept will even­tu­ally show up in the archive but not until the 15th. Steve’s con­tri­bu­tion starts about 15 min­utes in.

  • Steve Hum­mel

    Regards this cnbc video:

    It is amaz­ing how igno­rantly blinded of pol­icy alter­na­tives and pos­si­bil­i­ties eco­nomic “author­i­ties” are. And it’s all because of worn out ortho­doxy. Our cur­rent mon­e­tary con­trols aren’t con­trols at all. All you’d need to ACTUALLY have adult and wisely con­trolled mon­e­tary pol­icy is insti­tute a com­pen­sated retail dis­count BASED SOLELY ON THE FACTS OF THE COST OF CONSUMPTION OVER THE COST OF PRODUCTION that elim­i­nated infla­tion for con­sumers and kept retail­ers whole on their prof­its, and you actu­ally could give indi­vid­u­als $50-100k with­out doing any­thing but good. Wis­dom, it eludes the stu­pid, and is not pre­ferred by the mon­e­tary monopolists.…but it IS the answer. 

    I won­der if Faber’s $10,000,000 sug­ges­tion wasn’t more a way to inval­i­date the idea of a jubilee than to actu­ally encour­age it. Regard­less, as the stu­pids on CNBC quickly chimed in about inflation/ we must not vio­late “free” mar­ket the­ory, blah, blah, blah.…it shows how wide­spread idiot ortho­doxy actu­ally is.

  • Steve Hum­mel


    OWS got too sucked into the left/right fram­ing that Finance wants every­one to be hyp­no­tized by. That is a false dual­ity. The real enemy is finance, and the real prob;em is debt/credit/money. The only way to defeat the power of money.…is with money. The prob­lem with money is its monop­o­liza­tion by pri­vate banks and their lap dog gov­ern­ments. The best way to break up that monop­oly is with a eco­nom­i­cally and polit­i­cally fire­walled off insti­tu­tion whose sole func­tion is the accu­rate gath­er­ing of eco­nomic sta­tis­tics so as to dis­trib­ute and actu­ally con­trol a sup­ple­men­tal income TO INDIVIDUALS, a Social Credit dis­trib­ut­ing insti­tu­tion, if you would. The free­ing of indi­vid­u­als from the monop­o­liza­tion of credit with this POLICY of eco­nomic GRACE is a part of the syn­the­sis of eco­nomic and mon­e­tary pol­icy with the con­den­sa­tion of human spir­i­tu­al­ity con­tained in the ideas, val­ues and expe­ri­ences of Faith as in Con­fi­dence, Hope, Love and Grace. 

    Finance may be able to manip­u­late and con­trol pol­i­tics, eco­nom­ics, soci­ol­ogy etc. etc. for­ever, but Wis­dom, a higher order of think­ing and expe­ri­enc­ing, has the power to trans­form and over­come it.