Steve Keen «When the Swabian hausfrau saves, what does she do to your bank account?»
Channel: Rosa-Luxemburg-Stiftung
Date: 2019-02-15

Savings is promoted as a private virtue that should be practiced at a national and international level as well. What happens to the economy when it is implemented? Keen explains one of the great economic fallacies: that a government needs to manage its finances like a household, and if the government consistently spends more than it receives in income, the nation’s debt will ultimately become unsustainable, and the nation will go broke. Furthermore he will address why the predominant Neoclassical economic model of banking is dangerously misleading as a guide to how a capitalist economy actually works and was thus incapable of predicting the Great Financial Crisis of 2007.

Steve Keen was Professor of Economics and Head of the School of Economics, Politics, and History at Kingston University, London until the end of 2018. Keen has a dynamic approach to economics, in which banks, debt, and money play an integral role. He is an expert on Minsky's Financial Instability Hypothesis, and one of the handful of economists who warned of the 2008 crisis. He has been a critic of mainstream economics ever since he led a student revolt at the University of Sydney in 1973. He is now crowdfunded at https://www.patreon.com/ProfSteveKeen/

More information: https://www.rosalux.de/dokumentation/id/39986