"Professor Steve Keen was one of the few economists to predict the financial crisis. While the OECD and the US Federal Reserve foresaw a "great moderation", unprecedented stability and steadily rising wealth, he warned that a crash was bound to happen. Now he warns that the same factors that caused the crash show that what we've heard so far is merely the first rumble of the storm. Without a radical change of policy, another Great Depression is all but inevitable.
The problem is spelt out at greater length in the new edition of his book Debunking Economics. Like his lecture, it is marred by some unattractive boasting and jostling. But the graphs and figures it contains provide a more persuasive account of the causes of the crash and of its likely evolution than anything that has yet emerged from Constitution Avenueor Threadneedle Street. This is complicated, but it's in your interests to understand it. So please bear with me while I do my best to explain"...........READ MORE
"If Keen is right, the crippling sums spent on both sides of the Atlantic on refinancing the banks are a complete waste of money. They have not and they will not kickstart the economy, because M0 money supply is not the determining factor"
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