Macroeconomics of bank-created money and a Modern Debt Jubilee as a way out of the private debt trap

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My friend Dr. Sabri Oncu has established an innovative seminar program at Kadir Has University in Turkey. Called the "Kadir Has Lectures on Global Political Economy", it has had lectures from a number of non-mainstream economists, including Ann Pettifor, Frances Coppola, Yanis Varoufakis, and Jan Kregel. Forthcoming lecturers include Louis Philippe Rochon and Matias Vernengo.
You can find the series here:
• KHAS Lectures on Globa...
In my lecture, I explain how bank credit adds to aggregate demand and income, and therefore how capitalism's great crises--the Great Depression, the Great Recession, the Panic of 1837, and so on--were caused by credit turning negative.
I also explain how we could remedy the economy via a "Modern Debt Jubilee". Of course, since Neoclassical economists dominate economic policy, I know that this policy has no better than a snowflake's chance in Hell of being implemented.

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6 дек 2022

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Комментарии : 22

@ryanh8709 Год назад

2:40 start

@javierwagner4410 Год назад

@ProfSteveKeen I'm finding the Friede Gard series and other videos very informative and as something that can truly be understood through a closer connection with reality and real processes and not through those procedurally and unnecessarily complicated DSGE models that I can't seem to understand from first principles. I was wondering if you have considered to include in Minsky energy and mass flow balance diagrams and process flow charts? I think this would help with visualization and communication to people unfamiliar with Dynamical systems. I think transferring those concepts from engineering to economics would be great.

@ProfSteveKeen Год назад

Yes, it's definnitely an ambition to do so. But it requires funding for hurther development, which I don't have.

@Glu3H3d Год назад

im impressed.

@GreenIllness Год назад

The religion of 'free money for us who can created it' theatre must fall.

@GregoryJWalters Год назад

Super, Thank you!

@k-9lover5349 Год назад

I have no debt just monthly utility bills. Am I allowed to use the leftover money for what I WANT TO DO WITH IT?

@GhostOnTheHalfShell Год назад

I’ll be watching this in a few hours, but as a matter of curiosity is anyone even considering alternatives to interest, such as Gesell’s Friegeld? Money under demmurage loses its preferability when the charge comes into play; money is much more like any inventory. It is price stable needing no inflation floor (ie it is immune to deflation spirals) and interest can actually follow free market pricing. Concerns would be if it lead to speculation..

@quasimandias Год назад

What happens if my expenditure is only a consumption of a irreplaceable resource, generates no value nor opportunity, and the loss of it destroys the potentiality for future income? I understand that someone might profit by such in the short run but at the loss of future income.

@luker.6967 Год назад

Hah, maybe this is the kind of thinking going on in the WEF. We continue this neoclassical charade to dampen growth and reduce the worlds consumption as much as we can by indebting them so as to be less fucked by climate change, overpopulation, and resource depletion…

@moorecable Год назад

Economic development without power will be incomplete. The math is one thing. But money always finds the right politics to keep growth alive. So models that do not take account of the political power drives either economic growth or economic stagnation. A better idea beyond a debt jubilee would be a monthly living wage. That way extra income, extra growth,big economic multpliers will just be created.

@jackrankin8461 Год назад

I think the idea of a debt jubilee is an interesting proposal for reducing private debt, but I'm getting stuck on a few questions for how it would play out in the real world. Could a debt jubilee threaten the USD's status as the international reserve currency? How would such a large increase in the supply of treasury bonds affect liquidity and market functioning in the secondary market for treasuries -- i understand that the initial financing for the purchase of the treasury bonds comes from the deficit, but how would brokers, dealers, primary trading firms, and foreign governments/central banks react to such a large increase in treasury issuance? Finally, how would the banking system be different in a world where they are forced to hold treasuries as a much larger % of their total assets?

@SCplayer1000 Год назад

May I suggest that if you think all you've commented has anything to do with the "real world" you've totally missed the point.

@merfymac Год назад

“But how can the government go into negative equity?” “Because the government owns the country!”

@j85grim4 Месяц назад

Too much math Steve. You hurt my brain 🫨

@k-9lover5349 Год назад

Nobody will go to work if they recvd this money each month..

@AdanRaiser Год назад

A modern debt jubilee... But wouldn't that be just a reward for the irresponsible parasites in the financial sector that just caused all this mess in the first place?

@ProfSteveKeen Год назад

Absolutely not! In fact it would reduce their income earning assets and the danger would be that they would lose solvency. It would take wealth and power away from them, converting them back to the 3-6-3 businesses they were in the 1950s.

@AdanRaiser Год назад

@@ProfSteveKeen Thank you for clarifying the point, dear Professor. Greetings from Mexico, i am your follower since your book Debunking economics. I feel great admiration for you and your work. You are the "Scourge of the central bankers" :)

@k-9lover5349 Год назад

@@ProfSteveKeen but give the money back by buying their corporate items, toilet paper, TV's etc.. we are just handing it back to them and paying taxes on NEW items at higher rate..