The debt issue in Neoclassical economics

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My pre­sen­ta­tion at the Rosa Lux­em­bourg Foun­da­tion in Berlin today on how Neo­clas­si­cal eco­nom­ics mis­un­der­stands the role of pri­vate debt in a cap­i­tal­ist econ­o­my. I show how to use my Min­sky pro­gram to mod­el both the Neo­clas­si­cal “Loan­able Funds” vision of lend­ing and the empir­i­cal­ly-informed Post Key­ne­sian “Endoge­nous Mon­ey” mod­el.

I’m also about to start a Kick­starter cam­paign to raise addi­tion­al funds to devel­op Min­sky. Please “watch this space” and be ready to help pro­mote this cam­paign and help fund it. Min­sky as it stands has been writ­ten by one pro­gram­mer in about 800 hours. I want to be able to hire 3 pro­gram­mers for a min­i­mum of 2 years to ful­ly devel­op the pro­gram.

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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.