Keen, New Economic Thinking and “The Deluded Discipline of Economics”
The Institute for New Economic Thinking has announced that it has given Steve Keen, winner of the Revere Award, a grant of $125,000 to turn his money-based model of the macro-economy – which draws on the theories of Hyman Minsky and John Maynard Keynes – into a computer program for students and economists.
Keen says the program will make it easy to develop “dynamic” models of the economy that incorporate money and debt – something that orthodox models do not do.
[About] 99 per cent of economic models assume money doesn’t exist. They assume you live in a barter system … That’s why they didn’t see the financial crisis coming,” he said. “I’ve worked to find if I can build a truly monetary model of capitalism … [and] this is probably the only dynamic monetary model ever produced.
The point of Keen’s program will be to encourage economists to build models that account for the volatile nature of money. The program will be given to students for free.
Meanwhile in London on Tuesday 4th October, Steve Keen will take part in an evening of debate, The Deluded Discipline of Economics, at University College London with Mehdi Hasan and Ann Pettifor. The details are here: http://www.primeeconomics.org/?page_id=668