The Neoclassical conspiracy against Post Keynesian Economics

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Paul Krug­man recent­ly post­ed on pre­dic­tions of the cri­sis before it hap­pened, in a piece enti­tled “Non-prophet Eco­nom­ics”. It had a set of propo­si­tions about how one should eval­u­ate such claims with which I com­plete­ly and utter­ly agree. I’ll quote it in its entire­ty, because it’s an emi­nent­ly suit­able start­ing point for eval­u­at­ing whether a pre­dic­tion was in fact made:

So as I see it, we should first of all be eval­u­at­ing mod­els, not indi­vid­u­als; obvi­ous­ly we need peo­ple to inter­pret those entrails mod­els, but we’re look­ing for the right eco­nom­ic frame­work, not the dis­mal Nos­tradamus.

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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.