Talk to the Fabian Forum: The Global Financial Crisis: How bad will it get?

Published in April 13th, 2009

Posted by Steve Keen in Debtwatch, Money dynamics, RBA

Broadcast on March 11 2009 by ABC Radio National Big Ideas
A blog member has kindly produced a transcript of the off-the-cuff talk I gave at this forum. I’ve made minor corrections to the punctuation below, but the text is otherwise as delivered on the night without speaking notes–so there are some grammatical slips. For those [...]

“It’s just a flesh wound…”

Published in March 17th, 2009

Posted by Steve Keen in Debtwatch, Money dynamics, RBA

127 Comments

It seems we’ve moved from Stanley Kubrick to John Cleese. Rory Robertson’s reply to my “Rory Robertson Designs a Car” post reminds me of one of my many favourite scenes from Monty Python, the fight between King Arthur and the Black Knight:
King Arthur: [after Arthur's cut off both of the Black Knight's arms] Look, you stupid [...]

Bernanke an Expert on the Great Depression??

Published in January 11th, 2009

Posted by Steve Keen in Great Depression, Money dynamics, USA

44 Comments

Note: This post has been modified ni the light of comments that the initial version quoted Bernanke out of context.
A link to this blog from a US legal advisory website the Practising Law Institute’s In Brief ( “DEFLATION IN THE REAL WORLD“) reminded me of Bernanke’s book Essays on the Great Depression, which I’ve been aware of [...]

Ponzi Maths–Part 2

Published in January 2nd, 2009

Posted by Steve Keen in Money dynamics

4 Comments

In the previous post, I outlined my basic model of a pure credit economy, in which a single initial loan allowed a continous flow of economic activity (at a constant level) over time. The basic flowtable of that system was:

Type
1
-1
-1
-1

Account
Firm Loan (FL)
Firm Deposit (FD)
Bank Deposit (BD)
Worker Deposit (WD)

Interest on Loan
+A

Interest on Deposit

+B
-B

Pay Interest on Loan
-C
-C
+C

Pay Wages

-D

+D

Interest [...]

Ponzi Maths–Part 1

Published in December 31st, 2008

Posted by Steve Keen in Money dynamics

13 Comments

This is an unplanned post that partly pre-empts what I’ll be writing in the February Debtwatch Report, where I will explain in full my theory of money creation in a pure credit economy. So this is somewhat out of sequence, and will undoubtedly be badly explained compared to what I put together for February.
I will [...]

Dynamics of endogenous money

Published in March 30th, 2007

Posted by Steve Keen in Money dynamics

1 Comment

Most conventional and unconventional commentators on money believe that money is destroyed when debt is repaid. I disagree–but explaining why takes some time. I received an email this morning from a Ecological Economics discussion list in the USA on this issue, and wrote the following explanation of my position. I thought that readers of this [...]