Keen: Endogenous Money

Steve Keen has a pretty good lecture on endogenous money (the actual lecture is only about 42 minutes, the rest of the time he is answering questions). This is a nice lecture since he adds citations from the debate he had earlier this year against Krugman. This is an essential video to watch because it does seem that the neoclassicals fail to accept the fact that their economic theory is flawed. For example, towards the end of Keen’s lecture, he quotes Bernanke:

…the recent financial crisis was more of a failure of economic engineering and economic management than what I have called economic science.

Keen’s response….”Garbage!”I just love Keen’s distaste for neoclassical economics. I did not listen to the question/answer portion of the video yet, but I did listen to the first question and Keen’s answer.Essentially, the lady asked Keen where was Keynes in all this? I guess she was expecting Keen to talk about Keynes in this lecture but in fact, he did not even mention Keynes once in the lecture (I think ). Keen simply responded that he thought Schumpeter to be the better person when talking about the endogenous money theory. Granted he did say that if he had more time, he would have included Keynes in his lecture, but I just found it interesting that he is essentially saying that Schumpeter was superior to Keynes when talking about endogenous money.

-Isaac Marmolejo

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