Regular commentator Robin Stafford recommended this edition of Steve Keen's podcast. It takes some concentration, but the explanations are, as usual from Steve, very strong. Worth a listen:
How widespread is the idea that one person's debt is another person's credit and therefore has no impact on the economy. What are the implications of this thinking and what changes when the realisation that the banking sector is also involved and so is is the relative velocity of money in different hands. If we accepted that debt and credit don't always can cancel each other out how would that change the approach of governments and the monetary policy of Central Banks? Hosted on Acast. See acast.com/privacy for more information.
Listen on Apple Podcasts: https://podcasts.apple.com/gb/
podcast/debunking-economics- the-podcast/id1484374606?i= 1000588103809
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Thank you, Robin and Richard – I’ll take a look.
Steve is worth keeping an eye and ear on. One of the few genuinely progressive and radical economists. Debunking Economics is generally a good listen
I’ve read the book not long after it was printed and it sticks with you, believe you me.
It certainly does – a must read. For the more geeky ones amongst us, it is worth checking out Minsky whom Steve is a big fan of.
He also has a sense of humour, unlike most rather dry economists. You’ve got to like anyone who dresses as a monk to nail a Martin Luther inspired declaration to the door of LSE! And then adjourns for a few beers afterwards.
Rergarding access to doubtless an interesting POD cast – I keep getting “No DRM” which one assumes refers to “Digital Rights Management”. I do wish people would not use Apple – for a very long list of reasons. (would people use another platform if it was available?)
Discussions at the European Commission last week covered the signals that central banks get, how these are very poor and indeed what debt-credit means + velocity of money in the economy.
Also available on Spotify https://open.spotify.com/episode/7gN1AkJ3g0uZ9h43BexDUZ?si=vffXMCWqRTC-05ZKjQJXcw
Hoping you are better soon.
Thank you for the link to the Steve Keen podcast, though at my age, I struggle to hear clearly.
I was pleased he mentioned two points that have been exercising me and where I think conventional MMT may be weak.
He talked about the velocity of money (I had been thinking how a secondary effect of monetary policy could be to move “resting” money to and from “working” money. Inactive vs active money) I am not sure that velocity is the best metric. Area must be as important as speed. I think of derivates trading where vast amounts of money can circle round and round every day.
In the last couple of minutes he talked about the money that banks create being destroyed through bad debt. I hadn’t heard this before from a card-carrying MMT economist. But if much of the money that banks create is destroyed through their incompetent lending, then it can’t be contributing to inflation.
Good luck with the writing next year, but remember Job “Oh that … mine adversary had written a book”
Re your part, Job is credited with saying that, but the implication is that he wanted the charge sheet against him laid out
I want to answer the charges
You are correct, Richard. It requires a high degree of concentration to listen to the podcast, but I’m afraid that for me it was concentration needed to follow Keen’s message which was subject to constant, annoying interruptions from Phil. (Mind you, the podcast would have been a lot shorter if Keen had been allowed to actually answer many of the questions instead of being cut off after a few words.) If you’re going to do podcasts, please don’t let your co presenter do this to you, it makes the point being made very hard to follow.
Apart from that I thought it was really interesting, particularly about the deficit being money creation. I now have to read more of Keen’s work (I much prefer reading to listening) and get it all straight in my mind.
Thank you for flagging this up.
I note your point
I go for the soliloquy style