Talk­ing about Yanis on the BBC

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I was inter­viewed twice on the BBC yes­ter­day about Yanis Varo­ufakis and Syriza’s attempts to resolve its debt cri­sis with the EU–once on the BBC News Chan­nel and once on BBC World News. The video clips are below. Click here to see Yanis’s “mod­est pro­posal” for resolv­ing the cri­sis.

BBC News Channel

BBC World News

 

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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  • Peter Charles

    I would be inter­ested to hear Steve Keen’s views on pri­va­ti­za­tion in light of the Queens­land elec­tions and the NSW’s plan to pri­va­tize elec­tric­ity.

    From a layman’s point of view it makes sense to sell a devel­oped prop­erty in order to finance the devel­op­ment of a new prop­erty which will in turn become more valu­able.

    It seems improb­a­ble that the Gov­ern­ment would use quan­ti­ta­tive eas­ing to finance such projects as they are locked in to giv­ing this to banks.

    If Steve would have any prac­ti­cal eco­nomic advise on this it would be appre­ci­ated.

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  • Hi Peter,

    I’m no fan of pri­vati­sa­tion. It’s nor­mally based on the premise that the pri­vate sec­tor does things more effi­ciently than the public–which is only prob­a­ble when there is sub­stan­tial competition–and then hands a pub­lic monop­oly to the pri­vate sec­tor. The assets trans­ferred are also nor­mally long lived ones pro­duc­ing essen­tial prod­ucts where deliv­ery is more cru­cial than cost–such as san­i­ta­tion. Pri­vate sec­tor oper­a­tors can then make enor­mous prof­its in the short term by run­ning down main­te­nance, which was the case in san­i­ta­tion pri­vati­sa­tion in Aus­tralia, as Chris Sheil’s won­der­ful book “Water’s Fall” doc­u­mented very well. 

    Gov­ern­ment attempts to pro­vide reg­u­la­tion that mim­ics com­pe­ti­tion for pri­va­tised monop­o­lies have also nor­mally failed, as the cost of elec­tric­ity in Aus­tralia these days shows–see Michael West’s many arti­cles on this in the Fair­fax press.

  • avatar99

    If Greece is forced to Grexit, any chance the would be brave enough to try your mod­ern debt jubilee? If done at the same time, they could pay off debts in Euro and give savers drakma. Would that work?

  • It’s pos­si­ble. They could also declare that all debts includ­ing pri­vate ones are now denom­i­nated in Euro-Drachma, let the new cur­rency float on the mar­ket, and thus achieve a debt reduc­tion that way. But I know their objec­tive is to stick with the Euro, to avoid the chaos that could ensue from the swap to a new cur­rency. If it does come to an exit, it will be forced on them by Euro­pean intran­si­gence rather than their own choice.