Can We Avoid Another Financial Crisis?
May 2017, Polity
The Financial Crash that convulsed the world in 2008 had cataclysmic effects on the global economy, and took conventional economists completely by surprise. Many leading commentators, taken in by the hubris of economics, declared shortly before the crisis that the magical recipe for eternal stability had been found. Less than a year later, the biggest economic crisis since the Great Depression erupted.
In this compelling and explosive book, Steve Keen, one of the very few economists who anticipated the crash, shows why the self-declared experts were wrong and offers a realistic, monetary approach to economics that can warn of crises before they happen.
He shows how ever-rising levels of private debt make another financial crisis almost inevitable unless politicians tackle the real dynamics causing financial instability. He also identifies the economies that have become 'The Walking Dead of Debt', and those that are next in line to join themincluding China, Canada and Australia.
A major intervention by a fearlessly iconoclastic figure in modern political economy, this book is essential reading for anyone who wants to understand the true nature of the global economic system and the challenges facing it.
List of Tables and Figures
1. From Triumph to Crisis in Economics
2. Microeconomics, Macroeconomics and Complexity
3. The Lull and The Storm
4. The Smoking Gun of Credit
5. The Political Economy of Private Debt
6. A Cynic s Conclusion
"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
"Steve Keen explains why the financial crisis occurred, and why it can't just get better on its own. He also explainsin a hilarious and absolutely justified takedownwhy mainstream economists have a 'trained incapacity' in being unable to understand why the economy has broken downand hence, why they don't have a real solution."
Michael Hudson, University of Missouri-Kansas City
"In this compelling book, Steve Keen models the Minksy maxim that 'stability breeds instability'and that the 'Great Moderation' was in fact a great delusion. He also documents, to brutal effect, the foolish complacency of mainstream macroeconomists, when it mattered."
James K. Galbraith, author of Welcome to the Poisoned Chalice: the Destruction of Greece and the Future of Europe