I highly recommend having a look at Professor Steve Keen’s new book , “The New Economics - a Manifesto”. This is a critique of neoclassical economics and the equilibrium models taught by academics. Keen provides an explanation of the role of commercial banks in the creation of money and private debt in the growth of bubbles and their collapse. Importantly, it builds on Minsky’s Financial Instability Theory and presents Keen’s dynamic modelling program (also dubbed ‘Minsky’ and which he offers freely to readers) that is based on a set of interactive differential equations to trace the evolution of an economy ( or any other kind of complex system) over time. Keen’s work is very accessible and in my view is at the forefront of a paradigm shift in modelling and explaining the economy in its global ecological context. Significantly, it highlights the role of energy and how current mainstream economic thinking has failed to understand or prepare us for the climate crisis.
Your discussion about quantum analogies is interesting, but misses the point I think because you are looking through a classical, equilibrium lens. A more useful approach comes from chaos theory and strange attractors to explain the bimodality of boom and bust. This is where Keen’s approach is useful and powerful. Money is not just a claim on energy but also a claim on privatised land and privatised natural resources such as ocean fisheries, forests and minerals.
I highly recommend having a look at Professor Steve Keen’s new book , “The New Economics - a Manifesto”. This is a critique of neoclassical economics and the equilibrium models taught by academics. Keen provides an explanation of the role of commercial banks in the creation of money and private debt in the growth of bubbles and their collapse. Importantly, it builds on Minsky’s Financial Instability Theory and presents Keen’s dynamic modelling program (also dubbed ‘Minsky’ and which he offers freely to readers) that is based on a set of interactive differential equations to trace the evolution of an economy ( or any other kind of complex system) over time.
Keen’s work is very accessible and in my view is at the forefront of a paradigm shift in modelling and explaining the economy in its global ecological context. Significantly, it highlights the role of energy and how current mainstream economic thinking has failed to understand or prepare us for the climate crisis.
Just to let you know, you can find a conversation with Steve Keen on the podcast under the Global Macro Series :)
Yes , I saw that but it was over a year ago. His new book is more recent.
Your discussion about quantum analogies is interesting, but misses the point I think because you are looking through a classical, equilibrium lens. A more useful approach comes from chaos theory and strange attractors to explain the bimodality of boom and bust. This is where Keen’s approach is useful and powerful.
Money is not just a claim on energy but also a claim on privatised land and privatised natural resources such as ocean fisheries, forests and minerals.
S N