Steve Keen — Keen Harvard Seminar Combining MCT and MMT (video)

My presentation at the Harvard Law School "Re-theorizing Liquidity Pro-Seminar". Shows how to use Minsky to model a mixed private-fiat money system.

Keen Harvard Seminar Combining MCT and MMT

Steve Keen

Steve Keen — Congress Briefing on the Fiscal Cliff: Lessons From the 1930s (video)

Outgoing Ohio Congressman Dennis Kucinich (seehttp://kucinich.house.gov/) arranged for me to give a briefing at Congress today on the Fiscal Cliff, and how the downturn of 1937 could be a foretaste of what will happen if the Cliff comes to pass. An attempt by the government to reduce its debt now may trigger a renewed bout of deleveraging by the private sector--and this is what appeared to happen in 1937, when confidence that the worst of the Depression was over led to the government reducing its deficit. Private sector deleveraging, which had stopped in 1934-35, began once more and unemployment rapidly rose from about 10 to almost 20 percent. The main danger with the Fiscal Cliff is therefore not what the reduction of government spending will do on its own, but that it might trigger a renewed bout of deleveraging from the $40 trillion overhang of private debt that I call the "Rock of Damocles".

Congress Briefing on the Fiscal Cliff: Lessons From the 1930s

Steve Keen

Steve Keen — The Debt Issue in Mainstream Economics

The Debt Issue in Mainstream Economics

Steve Keen

My presentation at the Rosa Luxembourg Foundation in Berlin today on how Neoclassical economics misunderstands the role of private debt in a capitalist economy. I show how to use my Minsky program to model both the Neoclassical "Loanable Funds" vision of lending and the empirically-informed Post Keynesian "Endogenous Money" model.

Steve Keen — Cambridge Monetary Macroeconomics

Keen 2012 Cambridge Monetary Macroeconomics

Steve Keen

My talk to the Heterodox Economics Students at Cambridge University on November 28th 2012 on the necessity of a strictly monetary approach to macroeconomics.

Matheus Grasselli — Further thoughts on mathematics and economics

Quantitative Finance: Foundations and Applications
Further thoughts on mathematics and economics
Matheus Grasselli | Associate Professor and Sharcnet Chair in Financial Mathematics working with the PhiMac group in the Department of Mathematics and Statistics at McMaster University, currently Deputy Director at the Fields Institute

I am substantially in agreement here. Of course, math modeling is necessary in economics, just as in any rigorous endeavor involving quantity and especially quantitative systems. It's just that a model's implications should be accurately represented in terms of the model's limitations. This has often been violated in policy recommendation and political advocacy.

circuit — Thoughts on endogenous money

The author of Unlearning Economics has written two good posts on the endogenous nature of money (i.e., the notion that the money supply adjusts to the demand for money). I agree with the author's assertion that recognizing the endogenous nature of money is important in order for policymakers to properly address issues relating to financial instability.

Just to add to this discussion, the key aspect about the endogenous nature of money is its ambivalent effects on the working of the economic system. On the one hand, as stressed by many post-Keynesian monetary economists (especially circuitistes and modern monetary theorists), the endogeneity of money enables both the level of investment and growth to surpass what it would otherwise be in a context of self-financing....

On the other hand, as recently emphasized by the staff economist of the Bank for International Settlements (BIS), the endogenous nature of money, by allowing investment to surpass the capacity of self-financing, also acts to intensify the inherent risks and instability of the modern economy (in which finance plays a critical role) by creating the conditions that lead to unsustainable booms in credit and asset prices that "can eventually lead to serious financial strains and derail the world economy" (Borio, 2011:27).

Fictional Reserve Banking
Thoughts on endogenous money
circuit

Matheus Grasselli — 2012 UMKC Keen model with government (video)

Matheus Grasselli, Professor of Mathematics at McMaster University, presents an extension of the Keen model of financial instability to include government spending which is able to compare the austerity approach to that of running deficits during a recession.

Steven Keen's YouTube Channel

Steve Keen — Keen 2012 UMKC Reconciling MMT and MCT (video)

My presentation at the UMKC Post Keynesian conference in 2012 where I prove that, given endogenous money, effective demand is income plus the change in debt, and show that this is compatible with sectoral balances.

Steve Keen
Keen 2012 UMKC Reconciling MMT and MCT

Steve Keen's slide prfesentaiton at the MCT-MMT joint seminar at the Fields Institute Toronto

MMT-MCT Fields Institute Seminar: Stephanie Kelton

MMT-MCT Fields Institute Seminar: Stephanie Kelton

Michael Hudson — MMT & MCT

MMT & MCT Hudson

Andrew Lainton — The Lending Power of Banks in Monetary Circuit Theory – Adding Treatment of Bank Capital

This may be a bit wonky, but it is important for those interested in MMT, MCT and Steve Keen, and SFC modeling, especially in light of recent rapprochement. Seems that Neil Wilson has provided a bridge, too. Encouraging developments that are leading toward a unified approach that MMT and MCT economists can agree upon.

Scott Fullwiler tweets:

stf18: @AndrewLainton very good. don't see why you have to suggest it's a critique of mmt instead of just calling it a contribution to the lit, tho'

stf18: @AndrewLainton i've done things that weren't in randy's book but i didn't refer to these as criticisms

stf18: @AndrewLainton it's stuff we've already known that's now laid out nicely thanks to you. that's good enough for me. thanks!

Read it at Decision, decisions, decisions
The Lending Power of Banks in Monetary Circuit Theory – Adding Treatment of Bank Capital
by Andrew Lainton

See also Andrew Lainton, The Point of Origin of State Money in MMT Theory

Scott Fullwiler — MMT & MCT

 MMT & MCT Scott Fullwiler 

Steve Keen — MMT & MCT (video)

MMT & MCT Steve Keen

Steve Keen and the Minsky moment

Read it at The Financial Times | Alphaville

Steve Keen and the Minsky moment

by Kate Mackenzie
(h/t Andy Blatchford via email)

Interesting tidbits:

In fact, he doesn’t even really have a widely-used clever acronym yet. He told us that monetary circuit theory/MCT is the best one, and it’s one that already has a Wikipedia entry with several Keen-related footnotes.

Oh, and we are not hating on Keen, but there’s a prize* for the commenter who most accurately guesses Izzy’s concern with his theories.

Any takers?