This page lists and links to my academic papers. If you would like to support my research, please click on this link: Research Funding.
Research Financial Instability and Endogenous Money
A model of endogenous credit creation and a credit crunch. This paper is very technical and outlines my analysis of a credit crunch, which shows that if that was the only problem we faced, a government rescue could work, and contrary to standard monetary theory (a.k.a. the “money multiplier” model) it would be much better to give the government money to debtors than to the banks. It also outlines my preliminary multisectoral monetary model of production. This paper was produced with the financial assistance of thePaul Woolley Centre for Capital Market Dysfunctionality at the University of Technology, Sydney.
Household Debt—the final stage in an artificially extended Ponzi Bubble, Australian Economic Review, Vol. 42 No. 3 September 2009, pp. 347–57. This paper shows that the growth in household debt was not an equilibrium response to falling interest rates, but a Ponzi speculative bubble whose bursting is causing a serious recession. I present a model of Minsky’s “Financial Instability Hypothesis” that includes Ponzi finance as well as productive investment; the model generates a Depression when debt accumulated for speculative purposes overwhelms the productive capacity of the economy.
The Dynamics of the Monetary Circuit, in The Political Economy Of Monetary Circuits: Tradition And Change In Post-Keynesian Economics, edited by Jean-François Ponsot and Sergio Rossi (Palgrave, 2009, pp. 161-187). This is a reasonably accessible explanation of the technique I use to derive dynamic models of finance, and advocacy of continuous time methods over the discrete time approach that dominates Post Keynesian economics today.
Bailing out the Titanic with a Thimble, Economic Analysis and Policy, Vol 39 Issue 1, pp. 3-24. Unlike most refereed academic journals, this one is freely accessible online. In this paper I explain why I don’t expect the bailouts to work, I present a model of a credit crunch in a pure credit economy where the credit crunch alone causes a Great Depression.
Using Mathcad in Economic Analysis
This article, on Hearne Scientific Software’s website, explains my use of Mathcad for both data analysis and modelling.
The Nonlinear Dynamics of Debt Deflation. This technical paper gives a mathematical model of Minsky’s Financial Instability Hypothesis.
The process of endogenous money creation
The “Financial Instability Hypothesis”
Other Topics
I’ll gradually link all my academic papers here, since journals now seem comfortable about academics linking their papers on their own websites.
Econophysics
Worrying trends in econophysics. Mauro Gallegati, Steve Keen, Thomas Lux, Paul Ormerod, (2006). “Worrying trends in econophysics”, Physica A 370, pp. 1–6.
Marx
A Marx for Post Keynesians; unpublished
The Misinterpretation of Marx’s Theory of Value; Journal of the History of Economic Thought, 15 (2), Fall, 282-300
Use-value, exchange-value, and the demise of Marx’s Labour Theory of Value; Journal of the History of Economic Thought, 15 (1), Spring, 107-121
Use, Value and Exchange: The Misinterpretation of Marx; my Masters thesis on Marx, UNSW 1990; unpublished
Theory of the Firm
The conventional theory of competition is nonsense. I explain why in Chapter 4 of Debunking Economics, “Size Does Matter”. A more technical explanation is given in this paper:
Steve Keen (2004). “Deregulator: Judgment Day for Microeconomics”, Utilities Policy, 12: 109 –125
This only covers the Marshallian theory however. A more detailed critique which is relevant to the Cournot model as well is published here:
Steve Keen and Russell Standish, (2006). “Profit Maximization, Industry Structure, and Competition: A critique of neoclassical theory”, Physica A 370: 81-85
Say’s Law
“Nudge Nudge, Wink Wink Say No More!” in Steve Kates (ed.), Two Hundred Years of Say’s Law, Edward Elgar, Aldershot, pp. 199-209.
