Econ­o­mists Prove That Cap­i­tal­ism Is Unnec­es­sary

Flattr this!

Actu­ally they’ve done no such thing. But they do effec­tively assume that it’s unnec­es­sary all the time.

This tran­scen­den­tal truth became appar­ent to me in the reac­tions I have had from main­stream econ­o­mists to a lec­ture I gave to my Kingston stu­dents this month (which is posted on my YouTube chan­nel and blog).

Click here to read the rest of this post.

Lec­ture 3 in Becom­ing an Econ­o­mist at Kingston Uni­ver­sity

Flattr this!

This lec­ture intro­duce the Aus­trian school of thought, which is closely related to the Neo­clas­si­cal mainstream–in that it shares its util­i­tar­ian the­ory of value, accepts basic sup­ply and demand analy­sis, and sees cap­i­tal­ism as gen­er­ally tend­ing towards equi­lib­rium. But it is also highly crit­i­cal of the main­stream for the absurd assump­tions about indi­vid­ual knowl­edge that it is will­ing to make to pre­serve its equi­lib­rium-ori­ented math­e­mat­i­cal approach. It sees capitalism’s strengths as how it encour­ages inno­va­tion, which is an equi­lib­rium-dis­turb­ing process, and regards money as being both inte­gral to cap­i­tal­ism and the pri­mary source of eco­nomic cycles.

Edin­burgh Uni­ver­sity Talk: finan­cial insta­bil­ity, endoge­nous money & gov­ern­ment bud­gets

Flattr this!

This talk cov­ers all “the usual sus­pects” for me–the Neo­clas­si­cal obses­sion with equi­lib­rium, finan­cial insta­bil­ity, the Loan­able Funds myth and the real­ity of Endoge­nous Money, and the fool­ish­ness of gov­ern­ments try­ing to run a sur­plus as if they are house­holds, when the bet­ter anal­ogy is that they are banks and should run deficits to cre­ate part of the money sup­ply the non-bank pri­vate sec­tor needs.

Click here to down­load the Pow­er­point file (Min­sky files are embed­ded in it and can also be extracted and saved to your PC, if you’d like to play with them).

Lec­ture 2 in “Becom­ing an Econ­o­mist” at Kingston Uni­ver­sity

Flattr this!

Becom­ing an Econ­o­mist is the intro­duc­tory course on eco­nom­ics for under­grad­u­ates at Kingston Uni­ver­sity. This is the sec­ond of 11 lec­tures in the sub­ject; I’ll post the oth­ers as I write them over the next few months. This lec­ture dis­cusses why the Main­stream approach, start­ing from the fun­da­men­tal ques­tion Wal­ras posed “Can a sys­tem of free mar­kets reach a set of prices that ensures that sup­ply equals demand in all mar­kets?”

The answer was “No”, but that didn’t stop the “Equi­lib­rium Fetish Jug­ger­naut” that Wal­ras unleashed.

This is the Pow­er­point file for the lec­ture.

Call for papers for new jour­nal on pri­vate debt

Flattr this!

The Pri­vate Debt Project (this web­site will become active as of Decem­ber 2015) invites pro­pos­als for arti­cles, papers, and research notes related to the study of pri­vate debt and its rela­tion­ship to eco­nomic growth and finan­cial sta­bil­ity. The Project will pro­vide hon­o­rar­ium for all pub­lished work. In cases involv­ing papers with orig­i­nal research, it will also con­sider small research grants to help cover the cost of the research.

Com­mis­sioned arti­cles, papers, and research notes will be pub­lished on The Pri­vate Debt Project’s on-line jour­nal and will be dis­sem­i­nated to a wide audi­ence of aca­d­e­mics, pol­icy experts, gov­ern­ment offi­cials, investors, and busi­ness lead­ers.

Fel­low­ship for eco­nomic jour­nal­ism

Flattr this!

The Friends Prov­i­dent Foun­da­tion has just estab­lished a Fel­low­ship for UK jour­nal­ism to pro­duce a “a sig­nif­i­cant work of long form jour­nal­ism in any medium on the theme of build­ing resilient economies.”

I’ve copied the full press release below. For fur­ther details, click on this link. The full press release is copied below.

Journalist Fellowship 2016

The Foundation’s trustees have cre­ated a jour­nal­ist fel­low­ship to build a bet­ter under­stand­ing of eco­nom­ics in the wider pub­lic by work­ing with a lead­ing jour­nal­ist to cre­ate a sig­nif­i­cant work of long form jour­nal­ism in any medium on the theme of build­ing resilient economies.

Lec­ture 1 in “Becom­ing an Econ­o­mist” at Kingston Uni­ver­sity

Flattr this!

Becom­ing an Econ­o­mist is the intro­duc­tory course on eco­nom­ics for under­grad­u­ates at Kingston Uni­ver­sity. This is the first of 11 lec­tures in the sub­ject; I’ll post the oth­ers as I write them over the next few months. This lec­ture dis­cusses why econ­o­mists dis­agree with each other, and draws analo­gies with astron­omy at the time when Galileo dis­cov­ered craters on the Moon, and moons orbit­ing Jupiter and Sat­urn.

This is the Pow­er­point file for the lec­ture, which includes links to the Youtube videos used in this lec­ture:

Lec­ture 1: Why Econ­o­mists Disagree–Lessons from Astron­omy

Talk­ing Inter­est Rates with Phil Dob­bie

Flattr this!

One of the peo­ple I miss talk­ing with in Aus­tralia is radio jour­nal­ist and tech and inter­net expert Phil Dob­bie. For­tu­nately there’s Skype, and we reg­u­larly now chat mat­ters eco­nomic on his inter­net radio show Balls Radio. Here’s the lat­est com­plete pro­gram, includ­ing our dis­cus­sion of why inter­est rates are so low and are not going to move up until the level of pri­vate debt falls dramatically–which is unlikely to hap­pen.

Dis­cussing the UK with Simon Rose on Share Radio

Flattr this!

One of the very enjoy­able aspects of being in Lon­don is speak­ing reg­u­larly with Simon Rose on the busi­ness-ori­ented inter­net radio Share Radio. I know I can talk under wet cement; I think Simon could man­age to talk after it had set solid. We have a great time ban­ter­ing about top­ics eco­nom­ics, and I hope it’s of inter­est to the audi­ence as well. Here’s the lat­est install­ment, with some ear­lier ones avail­able here.

This blog has been verified by Rise: cD2ilYTuGGXNqqrhAyfUXzU3Aja9ymbF

Should The Fed Raise Rates?

Flattr this!

For seven years now, the rate The Fed sets to deter­mine the price banks pay to bor­row from it and from each other has been zero, or so close to zero that the dif­fer­ence is imma­te­r­ial. This is, his­tor­i­cally speak­ing, not nor­mal, and The Fed has a des­per­ate desire to return to what is nor­mal, which is rate a few per cent above the rate of infla­tion (see Fig­ure 1).

Click here to read the rest of this post.