011: Steve Keen on Debunking Economics and the Misinterpretation of Keynes
Steve Keen is Professor of Economics and Head of Department of Economics, History and Politics at Kingston University, London. Steve’s interpretative analysis is quite different to the norm. Steve likes to be known socially as an anti-economist and has spent 40 years fighting delusion in economics. That delusion has led us into a crisis and Steve may have finally won his battle… or has he? Steve is the winner of the Revere Award for being the economist who most convincingly warned of the economic crisis and whose work is most likely to prevent another one. He topped the poll beating Roubini, Shiller, Soros, Stiglitz and Krugman.
Economic Themes:
In this interview, Steve mentions and discusses: Keynesian economics, supply, demand and equilibrium, demand curves, Debt/GDP ratio, financial crisis, housing market bubble and IS-LM model.
Economists and Economic Schools:
In this interview, Steve mentions: Frank Stilwell, Neva Goodwin, Jack Reardon, John Maynard Keynes, Hyman Minsky, John Hicks, Paul Krugman, Paul Samuelson, Marshallian Economics (Alfred Marshall) and Walrasian Economics (Leon Walrasian).
In this episode, you will learn:
- how Steve saw the 2008 financial crisis coming when he investigated Debt/GDP levels.
- Steve’s views on current economic teachings in many school, colleges and universities around the world.
- what should be done at these colleges and how a pluralist approach to teaching economics is best.
- about Steve’s thoughts on the treatment of Keynesian economics.
- about Steve’s involvement in a Marvel-style comic book dedicated to teaching economics.
‘Stability is Destabilising’ Steve Keen’s t-shirt from the MINSKY campaign
Keynesian Economics
“If you read the Keynes that I base my work on which is really Keynes in 1937, not the General Theory, but the papers from 1937 – read that and a lot of Austrians will think they’re reading Hayek. Keynes is being completely bastardised. What people when they are saying Keynesian they mean Samuelsonian”.
Recommended Books:
- Debunking Economics: The Naked Emperor Dethroned by Steve Keen
- Money, Blood and Revolution: How Darwin and the doctor of King Charles I could turn economics into a science by George Cooper
- Dynamic Economic Systems: A Post-Keynesian Approach by John Markus Blatt
- Introducing a New Economics: Pluralist, Sustainable, Progressive by Jack Reardon.
Favorite Internet Resources:
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David Zetland
September 9, 2015 at 7:59 pmI agree with most of what Keen says, but I think he sold short on “demand slopes down” and MC slopes up (or I misunderstood something). Yes, “we” cannot measure where the demand curve is, usually, but that doesn’t mean its “downward trend” isn’t operative (http://www.aguanomics.com/2014/05/another-water-auction.html). On the supply side, yes factories are optimized for falling MC, BUT what about other constraints (e.g., labor, management, resources) that make it slope up at some point. Yes, firms are at falling MC, but that doesn’t mean MC wont rise (e/g/, xmas rush…)
Frank
September 15, 2015 at 9:38 pmGreat comment David. Love the link to the diagram on the demand curve. It’s fascinating to see a demand curve result from actual data.