This new video from Steve Keen is good and worth looking at:
Sometimes his focus on modelling makes his videos hard to follow: I think the balance is OK here, and the suggestions he makes are worth watching.
We share an understanding of modern monetary theory.
We also share an understanding that the discipline of double-entry bookkeeping is key to understanding economics.
With double entry, we focus on reality. The rest play games.
Comments
When commenting, please take note of this blog's comment policy, which is available here. Contravening this policy will result in comments being deleted before or after initial publication at the editor's sole discretion and without explanation being required or offered.
Thanks for reading this post.
You can share this post on social media of your choice by clicking these icons:
There are links to this blog's glossary in the above post that explain technical terms used in it. Follow them for more explanations.
You can subscribe to this blog's daily email here.
And if you would like to support this blog you can, here:
Buy me a coffee!
As a non economist, non accountant I really liked the simplicity of Steve Keen’s graphs showing what actually happens with increased public spending and I also like the idea of focusing on double entry accounting as a way of countering the prevailing mantra that extra spending means we get a bigger and bigger ‘black hole’ as though the money spent simply disappears. I listened the other day to a Government spokesperson regarding the cost of the wage and employment demands of the Resident Doctors, saying that this would be ‘fantastically expensive’, when in reality, as I understand it anyway, much of the extra spending would be recouped in tax, spent back into the economy and have the multiplier effect of stimulating GDP.
Your understanding is right
Steve Keen is great man. I discovered him before happening upon Prof Murphy. Stick with him and he’ll get you there – I find his narrative always delivers and worth persevering folks – honestly.
But do try to see the value of the math.