Keen: Instability in Financial Markets

Steve Keen’s talk at INET is now up on the web (hat tip BT). His talk is billed as involving a discussion of “Instability in Financial Markets”. It also comes over as a primer on the economic approach of economist Hyman Minsky. In the session, Steve argues that one cannot model Minsky using a New Keynesian or traditional neoclassical approach because of the reliance of these modelling approaches on the economic equilibrium assumption. Keen sees this assumption as the major flaw that cannot be remedied using standard modelling approaches.

The talk runs just over 22 minutes and ends with two innovative solutions to this and future debt crises.


Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty years of business experience. He is also a regular economic and financial commentator on BBC World News, CNBC Television, Business News Network, CBC, Fox Television and RT Television. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College. Edward also writes a premium financial newsletter. Sign up here for a free trial.