The UK won’t see an end to lockdown measures until July, but after that the hope of many is that the economy will bounce back quickly. The Bank of England governor has called it a coiled spring. Many are comparing it to the roaring twenties. Part of the reason for this optimism is the argument that many people in the country have saved money during the lockdown, because they haven’t been able to spend on shopping or on overseas holidays. The household savings ratio increased significantly last y...
Feb 23, 2021•30 min•Season 1Ep. 244
Australians can no longer turn to Facebook for news. From today they have banned Aussies from posting links to news sites on their platform, or for Facebook users anywhere linking to Australian news content. Australian treasurer Josh Frydenberg says these actions demonstrate that the big social media players wield too much power and control. Facebook has taken this stance because they don’t believe they should have to pay whenever anyone on Facebook chooses to link to an Australian news site. Wh...
Feb 18, 2021•36 min•Season 1Ep. 243
In 2019 Greta Thunberg spoke to politicians at the UN Climate Week, saying they were promoting fairy tales of eternal economic growth. The next year we saw GDP in advanced economies fall by around five percent. Was this a win for the green movement? James Strain, a Debunking Economics Podcast listener, suggested we talked about the need for de-growth. He said, “It seems to me that this is imperative to our transition to a more sustainable society, but it breaks so many long-held fundamentals in ...
Feb 09, 2021•32 min•Season 1Ep. 242
There was a bit of argy-bargy on the share markets in America last week, when a bunch of day traders set to take on Wall Street, particularly the hedge funds who were shorting stock on Gamestop, amongst others. Were the day traders the bad guys in this scenario? Did the retail traders know what they were getting themselves in for? In this episode Prof Steve Keen suggests maybe the Robin Hood retail platform should be considered the bad guys. A step in the direction would be to reduce speculation...
Feb 03, 2021•33 min•Season 1Ep. 241
Remember a time when central banks pretended to be independent, insulated from day-to-day politics? That had all but disappeared before COVID, but the pandemic was the final nail in the coffin of central bank independence. Instead, they have been colluding with governments to provide the mechanism to issue more public sector debt. Monetarism can’t resolve this crisis, so central banks’ usual tools are worthless. This week Phil Dobbie asks Prof Steve Keen whether this new arrangement, where the c...
Jan 27, 2021•36 min•Season 1Ep. 240
Last weekend, Lord Sumption, was talking about why a lockdown harms everyone when the virus mainly ills people who are old or who have with debilitating conditions. He suggested we shouldn’t have lockdowns, because the lives lost were of less value than the rest of us. He isn’t the first to suggest that some lives are worth more than others. In fact, he argues we place a value on human life to determine the extent of healthcare intervention. It’s called the Value of Prevented Fatality (VPF). Thi...
Jan 21, 2021•30 min•Season 1Ep. 239
One big problem as we emerge out of the COVID crisis is, even if we have money we’ll be reluctant to spend it. So, how can the government get us to step up our spending? The answer, perhaps, lies in Austria in the 1930s, when the Mayor of Wörgl issued his town’s own currency, with built in demurrage. Could a new, parallel currency be the way to increase the velocity of money and help the economy bounce back. Could it also be the first big step towards a universal basic income? Prof Steve Keen ta...
Jan 13, 2021•29 min•Season 1Ep. 238
If you follow the science of Cliodynamics, the events unfolded in the United States the last few years have been entirely predictable. This week Prof Steve Keen talks to Phil Dobbie about the work of Peter Turchin, who has built mathematical models to track changes in society based on economic, demographic and political changes. How much can it tell us about the rise in populism that brought Donald Trump to power? Can it tell us want happens next? Hosted on Acast. See acast.com/privacy for more ...
Jan 08, 2021•10 min•Season 1Ep. 237
Earlier this year Phil Dobbie asked Steve keen for his predictions for 2020. Without a whiff of COVID-19 IN THE AIR, Steve talked of a capitalist economy on government life support. On that he was pretty much on the mark. So what of 2021. In this free edition of the Debunking Economics podcast he explains the reasoning behind his five predictions for the year ahead: 1. Recession in Europe and America as financial aftermath to the COVID crisis. 2. The housing bubble to continue in Australia., but...
Dec 30, 2020•44 min•Season 1Ep. 236
As the US government argues over whether to spend almost another $1 trillion to stimulate an economy ravaged by COVID-19, and the UK government likely to increase public sector borrowing by GBP215 billion this year, plus central banks lowering interest rates to often below zero, is there a chance our response to COVID-19 has been over the top? Some argue that the response, when the economy finally recovers, will be highly inflationary. Whilst others, Steve Keen included, believe deflation is goi...
Dec 23, 2020•29 min•Season 1Ep. 235
Would the UK be better off with tariffed trade with Europe? The public discourse seems to be focused on how to remove tariffs, but Prof Steve Keen argues that if they are sufficiently high they will encourage domestic production across a variety of industry sectors. The more complex the mix of industries the more self sufficient an economy becomes, which also increases the potential for developing a broader range of exports. The only limitation is scale – but with 65 million people, is Britain b...
Dec 16, 2020•34 min•Season 1Ep. 234
The UK has cut its foreign aid budget to help pay for the domestic costs of COVId-19. Is that a bit of a callous move? That’s a rhetorical question, but there’s a more meaningful question on today’s podcast – is there a better way of managing foreign aid. Steve Keen has worked with agencies dealing with foreign aid, and discusses the failings of the process with Phil Dobbie. Corruption is one issue with the recipient nations, whilst the donor countries often choose destinations that look after t...
Dec 12, 2020•34 min•Season 1Ep. 233
Steve Keen and Michael Hudson have both been arguing for a debt jubilee for some time. Now, as COVID-19 hits the poorest hardest, and leaves those with money better off than before, is this the right time to write off debt? Can the economy recover without it? After all, its stagnated since the 2008 global financial crisis. If you were to have a debt jubilee, how would you do it. Steve and Michael have different ideas about how it should be implemented. They explain their thinking to Phil Dobbie ...
Dec 04, 2020•51 min•Season 1Ep. 232
It’s a first for the Debunking Economics podcast, but we think it’s not a bad idea – a bunch of listener questions to make sure we are all on the same page. Suneil Basu wrote to ask if we could cover off the differences between Keynesian and Post-Keynesian economics, and the different approaches of the Chicago and Austrian Schools. Also, how did neo-classical economists claim the centre ground? Listen in for Steve’s answers. Also a couple of questions on the EU versus the WTO, and whether Russia...
Nov 26, 2020•37 min•Season 1Ep. 231
The world economy has undergone massive transformation with COVID-19. There will be an even bigger upheaval as climate change takes hold. How do we prepare for the economic changes it will bring about. The way of coping with the virus emergency has been unprecedented levels of government intervention. Does that mean the only way to transition to a greener economy is through public funding, or can the private sector carry the can? And who manages the transition? Eric Rosengren from the Boston Fed...
Nov 20, 2020•36 min•Season 1Ep. 230
The world economy has undergone massive transformation with COVID-19. There will be an even bigger upheaval as climate change takes hold. How do we prepare for the economic changes it will bring about. The way of coping with the virus emergency has been unprecedented levels of government intervention. Does that mean the only way to transition to a greener economy is through public funding, or can the private sector carry the can? And who manages the transition? Phil Dobbie talks to Prof Steve Ke...
Nov 12, 2020•36 min•Season 1Ep. 229
Despite intensive talks Michel Barnier says there are still clear divisions between the EU and the UK over an agreement post-Brexit, which is less than two months away. This week Prof Steve Keen, a Brexit supporter, says the whole affair should be put on hold whilst the world copes with COVID-19. Phil Dobbie asks whether a deal will ever be reached anyway? Did the UK really think it would secure a tariff-free relationship if it didn’t adhere to rules on government subsidies. Rules that are surel...
Nov 06, 2020•31 min•Season 1Ep. 228
Governments spent up big at the start of the COVID crisis, but they are being a bit more canny with their money right now. Meanwhile, central banks are seeing the need to step in, with monetary policy being used to fill the gaps where fiscal stimulus isn’t forthcoming. But are they kidding themselves? Can the economic consequences of a pandemic really be filled by a central bank dropping interest rates and buying back a large number of government bonds? In short, the answer is no. In this week’s...
Oct 26, 2020•38 min•Season 1Ep. 227
There’s a commonly held misconception that the Bank of England is creating extra money and pumping it into circulation through quantitative easing. In this week’s podcast Prof Steve Keen explains how QE amounts to nothing more than an asset swap – so no new money is created. The only way money can be created is through commercial banks issuing loans – something they are not doing much of – or governments running a deficit. Even the IMF is now suggesting that advanced economies should not be worr...
Oct 12, 2020•33 min•Season 1Ep. 226
Wealth in UK is very concentrated I the southeast of England. In other countries, the structure of administration and banking has seen a more diversified economy. So what could change to make income and productivity more equable throughout the UK. In this week’s Debunking Economics podcast Phil Dobbie talks to Prof Steve Keen about the devolution of Scotland, the role of local administrations, Germany’s regionalised public banking system and the role of local currencies, including the Worgl expe...
Oct 06, 2020•35 min•Season 1Ep. 225
Politicians, the media and most economists are obsessed with government debt – now more so than ever. But, as Modern Monetary Theory has shown, there is no issue with governments perpetually running budgets in the red, providing the extra money supply resulting from it is not inflationary. This week Phil Dobbie suggests some of the debt issued in the form of bonds could be given to the public as a form of universal income, which increases when government debt is highest – when the economy is in ...
Sep 30, 2020•34 min•Season 1Ep. 224
Would a job guarantee resolve the battle between inflation and unemployment? Conventional economists argue that when the labour market is tight – and there are few jobs to go around – people ask for more money and that creates inflation. When there are very few jobs – like now – inflation is much lower. The counter argument, from Modern Monetary Theorists, is that a job guarantee would reduce this flux, whilst improving the lifestyles and wellbeing of the population. This week Phil Dobbie asks S...
Sep 27, 2020•39 min•Season 1Ep. 223
The US Federal reserve this week indicated that interest rates will remain close to zero through till 2023, at the earliest. Why because inflation is subdued and they don’t expect it to pick up until employment returns to normal. But what’s normal? Central banks work on the principle of NAIRU - the nonaccelerating inflation rate of unemployment – but they never seem to be able top in down exactly what that rate is. Before the pandemic US unemployment was down to 3.5 percent, with no sign of infl...
Sep 17, 2020•37 min•Season 1Ep. 222
There are the deniers who will argue that mankind has no influence on climate, but worse yet, there are economists who argue the impact will be so small the cost of trying to prevent it will be far greater than the consequences of living with it. That’s the line taken by joint Nobel prizewinner William Nordhaus. In this week’s edition of the Debunking Economics podcast Prof Steve Keen takes Phil Dobbie through some of the spurious arguments and assumptions used by Nordhaus to reach his spurious ...
Sep 09, 2020•42 min•Season 1Ep. 221
In Japan Shinzo Abe has announced he is stepping aside because of ill health. Will this mark the end of Abenomics, the term used to describe his three-pronged approach to fighting the country’s ailing growth rate and deflation? Some point to the continued slow growth as a sign that his approach hasn’t worked, but on today’s podcast Prof Steve Keen tells Phil Dobbie, things would have been much worse with a more conventional approach. Japan is an example of Modern Monetary Theory in action, and f...
Sep 07, 2020•36 min•Season 1Ep. 220
Governments the world over are spending like crazy to try and steer their economies through the COVID-19 crisis. Whether it’s the fiscal policies of the government or the monetary policies of the central bank, it all still revolves around using money that wasn’t around a few months ago. So how much of what is happening is described by Modern Monetary Theory – and how much more could be done if we accepted that MMT is the way things should really work. And do central banks, or treasurers really u...
Aug 27, 2020•39 min•Season 1Ep. 219
We’re travelling less, staying away from the office, and spending more time at home. In the short term, it seems, those who still have money are spending a slug of it doing up their house, or moving to a bigger one, with outdoor space. House prices in the UK are growing much faster in Scotland, Wales and regional England than they are in London, for example. So, will escalating house prices be one of the consequences of COVID cocooning – and does that make the economic impact of the virus even w...
Aug 18, 2020•34 min•Season 1Ep. 218
The agreement by EU members to issue grants and loans to member states suffering the most from COVID-19 was a turning point for the union. Whilst US politics sees continued bickering on the size and form of a stimulus package, across the Atlantic a diverse range of countries have come together to agree a way forward. Is this a major turning point for the EU. Come we see fiscal and monetary union that could pave the way for the United States of Europe? It’s a question Phil Dobbie puts to Steve Ke...
Aug 14, 2020•29 min•Season 1Ep. 217
The UK’s Home Secretary Priti Patel has revealed the government’s plan to curb migration to the UK, with a universal points system. It’s going to be hard for anyone to migrate to Britain without a job lined up that pays over £25k. Phil Dobbie asks Steve Keen whether it’s a good thing to set a minimum wage for migrants. After all, having we been exploiting workers, paying too little for jobs the locals aren’t prepared to do? Or do these low paid jobs impact the rate of pay for all workers, whatev...
Aug 06, 2020•34 min•Season 1Ep. 216
Remember climate change? Believe it or to, even with COVID-19 dominating our consciousness, the environment is still a thing. A new report by NGFS - a voluntary group of central bankers concerned about the environment – reckons the world’s global GDP could fall by 25 percent by 2100 if we do not do more to reduce greenhouse gas emissions. Whilst their intent might be right, Steve Keen is concerned that their modelling is wrong. Like most of the economics profession there is no application of sys...
Jul 30, 2020•43 min•Season 1Ep. 215
