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 big enough to go it alone? Phil Dobbie points to countries with high GDP that have a hefty reliance on foreign trade. Hosted on Acast. See acast.com/privacy for more information.

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 their own vested interests. But John Maynard Keynes had an idea that would have made foreign aid more of an automatic process. It’s just America won’t like it very much. Hosted on Acast. See acast.com/privacy for more information.

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 on this week’s edition of the Debunking Economics podcast. Hosted on Acast. See acast.com/privacy for more information.

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 had a hand in the Brexit result. SAs we say on the podcast, it’s a grab-bag of questions – but that keeps it interesting (we hope). Hosted on Acast. See acast.com/privacy for more information.

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 admitted to the FT earlier this year that they don’t have the tools to “stop firms and households” from taking on “excessive leverage”, yet it’s the Fed policy that has created the problem. Phil Dobbie asks Steve Keen whether rising asset prices are a bad thing or not, and if its seen as a problem, what can be done about it? Hosted on Acast. See acast.com/privacy for more information.

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 Keen. Hosted on Acast. See acast.com/privacy for more information.

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 surely being broken right now as cash handouts are rife to protect businesses that face closure because of the virus. And every free trade agreement always has a clause about opening up public procurement, the terms of which are complicated. Do we rally expect all this to be resolved by the end of next month? Hosted on Acast. See acast.com/privacy for more information.

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 Debunking Economics podcast Prof Steve Keen discusses the limitations of monetary policy measures with Phil Dobbie. Plus, why QE isn’t creating money, its just moving it around a bit, to those people who need it the least. Hosted on Acast. See acast.com/privacy for more information.

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 worried about public debt. Talking to Phil Dobbie, Steve explains the limited impact of QE and the need for something like the Bradbury Pound, when the government issued currency – interest free and deb free - without any involvement of private banks.  Hosted on Acast. See acast.com/privacy for more information.

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 experiment in Austria during the great depression. With more people experiencing the benefits of working from home could this be the first step in a more decentralised UK economy. Hosted on Acast. See acast.com/privacy for more information.