THE global financial crisis, the latest episode of which boiled over last week, did more than destroy wealth and jobs, or embarrass the rating agencies. It exposed the malaise within the economics profession and the deep flaws in its orthodox theories.George Soros, the billionaire financier and philanthropist, was among those who joined the search for new ideas. Mr Soros funded a new organisation called the Institute for New Economic Thinking which for the past two years has handed out millions of dollars in grants, funding research projects that look at economics in fresh ways.This month, the institute gave more than $125,000 to an Australian.Steve Keen, Associate Professor of Economics and Finance at the University of Western Sydney, has won a grant to turn his money-based model of the macro-economy - which draws on the theories of economists such as Hyman Minsky and John Maynard Keynes - into a computer program for students and economists.
Read the full article at The Sidney Morning Herald, It's time to put money into the equation, says professor
that's great but can he work with MMT to incorporate vertical money and actually get it right?
ReplyDeletein the article it says he starts with loans.... wrong?
in the article it says he starts with loans.... wrong
ReplyDeleteWondering the same. If the vault = thin air i.e. where fiat money comes from then the model seems to imply the private sector borrows money into existence rather than earns it.