Can we avoid another financial crisis?
In 2008, conventional economics led us blindfolded into the greatest economic crisis since the Great Depression. Almost a decade later, with the global economy wallowing in low growth that they can’t explain, mainstream economists are reluctantly coming to realise that their models are useless for understanding the real world.
How did mainstream economists not see the crisis coming? Was it unpredictable, as they now assert, or did their theory blind them to the real causes? Will another financial crisis occur?
These questions and others are asked and answered in Steve Keen‘s new book Can we avoid another financial crisis? , a short (25,000 word) explanation for the lay reader of how we got into this economic mess, and why we are unlikely to get out of it.
“No one is more qualified than Steve Keen to answer the question ?Can we avoid another financial crisis?? with more than a single word. Read this book!”
Yanis Varoufakis, former Finance Minister of Greece
“In this compelling essay, Steve Keen shows that the ?Great Moderation? was in fact a great delusion and documents, to brutal effect, the foolish complacency of mainstream macroeconomists.”
James K. Galbraith, University of Texas at Austin
“Steve Keen explains why the financial crisis it occurred, and why it can?t just get better on its own, along its present track. He also explains ? in a hilarious and absolutely justified takedown ? why mainstream economists have a ?trained incapacity? in being unable to understand why the economy has broken down ? and hence, why they don?t have a real solution. We are still living in the aftermath of the 2008 crisis. It?s all about debt. But economists fear they will lose their jobs if they say that debts must be written down. Keen asks what is more important: to save the economy, or to save the jobs for economists whose prestige rests on their not understanding why economies are in trouble today.”
Michael Hudson, author of Killing the Host and The Bubble and Beyond