- 21 Nov 2023 07:08
#15295976
Book Launch for The New Economics: A Manifesto. Talk to Economic Society of Australia
[I had to use the phrase "futurely clairvoyant" because I ran out of characters. It means "clairvoyant about future events" and not about distant events.]
In this video heterodox economist, Steve Keen, was launching his book from 2 years ago.
He does explain some of the content.
1] The mainstream econ. definition says that the "Rational Agents" can very accurately predict the future. This is, of course, a fantasy. Is it any wonder that MS econ. theories almost always predict future events that just do not happen?
2] He shows that the "Loanable Funds Theory of Banking" is totally false.
And that, therefore, the use of that theory to cancel out bank credit form having any impact on the economy or GDP is not valid.
That in fact, bank credit is the most volatile part of the economy, it can be positive or negative at different times, so it is the most critical for any model of the economy. Is it any wonder that MS econ. theories almost always predict future events that just do not happen?
. . . [Frankly, I lack the economic background to follow his explanation of how he adds bank credit to the model. I'm sure some of you can understand it better than I do.]
3] He shows that MS econ. using the loanable funds theory gets it backwards. He says that MS econ., if you do the math, predicts that a rising level of debt leads to a falling GDP, but [if I understand things correctly] in words MS econ. predicts the opposite. This prediction is correct, it's just that the math predicts the opposite. Steve does the math correctly and shows what his math predicts.
4] Steve explains just how and why the so-called science of Economics is no such thing, because it has not changed for over 140 years. I'd add that it is partly because the rich like it the way it was, and they fund universities.
5] Other things as well.
Remove the [==] to view it.
https://www.you[==]tube.com/watch?v=TtOxLhwxYx8&list=TLPQMjExMTIwMjPoDenQE9PSFw&index=3
.
[I had to use the phrase "futurely clairvoyant" because I ran out of characters. It means "clairvoyant about future events" and not about distant events.]
In this video heterodox economist, Steve Keen, was launching his book from 2 years ago.
He does explain some of the content.
1] The mainstream econ. definition says that the "Rational Agents" can very accurately predict the future. This is, of course, a fantasy. Is it any wonder that MS econ. theories almost always predict future events that just do not happen?
2] He shows that the "Loanable Funds Theory of Banking" is totally false.
And that, therefore, the use of that theory to cancel out bank credit form having any impact on the economy or GDP is not valid.
That in fact, bank credit is the most volatile part of the economy, it can be positive or negative at different times, so it is the most critical for any model of the economy. Is it any wonder that MS econ. theories almost always predict future events that just do not happen?
. . . [Frankly, I lack the economic background to follow his explanation of how he adds bank credit to the model. I'm sure some of you can understand it better than I do.]
3] He shows that MS econ. using the loanable funds theory gets it backwards. He says that MS econ., if you do the math, predicts that a rising level of debt leads to a falling GDP, but [if I understand things correctly] in words MS econ. predicts the opposite. This prediction is correct, it's just that the math predicts the opposite. Steve does the math correctly and shows what his math predicts.
4] Steve explains just how and why the so-called science of Economics is no such thing, because it has not changed for over 140 years. I'd add that it is partly because the rich like it the way it was, and they fund universities.
5] Other things as well.
Remove the [==] to view it.
https://www.you[==]tube.com/watch?v=TtOxLhwxYx8&list=TLPQMjExMTIwMjPoDenQE9PSFw&index=3
.