“Tell me what the wires do”

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This arti­cle begins with a tweet from the US eco­nom­ic blog­ger Noah Smith, who posts at Noah­pin­ion:

Here we go, I thought – yet anoth­er main­stream attack on my non-main­stream eco­nom­ics. But why on earth would he see Min­sky – my sim­u­la­tion pro­gram for mod­el­ling the econ­o­my as a fun­da­men­tal­ly mon­e­tary sys­tem – as basi­cal­ly absurd? Because “DSGE mod­el­ling is so much bet­ter”, per­haps? Or because there are so many oth­er good sys­tem dynam­ics pro­grams already, why pro­duce anoth­er one?

Guess­ing that it was the for­mer rather than the lat­ter, I fired back:

The bat­tle was then start­ed:

And then, sud­den­ly, I realised that this wasn’t going to be a bat­tle at all:

“Tell me what the wires do”? Oh dear…

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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.