In this podcast series Prof Steve Keen has repeatedly argued the importance of keeping an economy in surplus. But, Alex Howlett, a regular listener and Patreon supporter, asks why this might be. He suggests a trade deficit is a good thing, because it suggests companies overseas are willing to accept your currency. The more currency you generate, the more you can buy. To a point. Phil Dobbie asks Steve, what’s wrong with Alex’s hypothesis? Hosted on Acast. See acast.com/privacy for more information.

One of our podcast listeners, Arjen, asks the question, “Why don't you recommend a full-reserve banking system instead of fractional reserve? There would be much less debt in such a system and a smaller role for the central banks.” Phil Dobbie puts the question to Prof Steve Keen, and struggles to understand why the text book explanation of fractional reserve banking is wrong, wrong, wrong. Hosted on Acast. See acast.com/privacy for more information.

We’ve talked a lot on the Debunking Economics podcast about how energy is the only real driver of an economy, so the performance of an economy is driven by the availability of the resource and how efficiently it is captured. Phil Dobbie asks Professor Steve Keen if that means countries with the most energy resources should be the most effective producers of goods, with a healthy trade surplus. If that’s the case, why doesn’t Saudi Arabia make very much? And could nations embracing renewable energy efficiently become net exporters if their governments invested wisely? Hosted on Acast. See acast.com/privacy for more information.

Britain’s productivity levels are 17 percent lower than the rest of the G7. A French worker could take Friday off and still beat the output of a British worker. So, does that mean we mean a more educated workforce? Could we improve the productivity of the UK if everyone was just that little bit smarter? Phil Dobbie puts that question to Professor Steve Keen in a discussion that goes full circle – from the need to focus more on vocational topics, to the potential benefits of studying topics that have no vocational leaning at all. Hosted on Acast. See acast.com/privacy for more information.

Many people it seems have turned to cryptocurrencies as a way of side stepping banks – a technology that will challenge their dominance and democratise the supply of money. Others look to fintech as a means of cutting out the established finance sector, putting investors and borrowers together, cutting out the middleman. But are they kidding themselves? In this edition of the Debunking Economics podcast Phil Dobbie asks Prof Steve Keen whether they’ve ignored some of the key roles banks perform. And what about the regulator? Isn’t there still a need for regulation? Hosted on Acast. See acast.com/privacy for more information.

We know there is growing discontent around the world about the distribution of wealth and, it seems, financial crises can make the problem worse. In this edition of the Debunking Economics podcast Phil Dobbie asks Prof. Steve Keen why the boom bust nature of capitalism accentuates the wealth divide and what can be done to remedy the problem. Hosted on Acast. See acast.com/privacy for more information.

Just how much control does a country have over its own economy? We’ve seen wage growth stifled by international competition and the decimation of manufacturing in the West. Yet Trump and Brexit voters are pushing an agenda to take control of their economies – will they win? Phil Dobbie asks Steve Keen what actually has to happen if we are to have control of our economic destiny – and our regulations - at a time of increasing international trade and the continued growth of major corporations. Hosted on Acast. See acast.com/privacy for more information.

We often hear the argument that house prices have risen so much because there’s a lack of supply. Politicians argue that if more land was released to developers more homes would be built and the affordability issue would be fixed. Prof Steve Keen, meanwhile, has argued that it is the willingness of banks to offer massive mortgages that has pushed prices to high. In this podcast Phil Dobbie asks whether supply is still an important factor in the equation. They also discuss how geography and land-use influences prices, who meets the external costs of housing and our appetite for bigger, better houses. Hosted on Acast. See acast.com/privacy for more information.

The Oxford Review of Economic Policy devoted its entire latest edition to rebuilding macroeconomic theory. That sounds like an acknowledgement that the theories that have guided the profession for decades might be flawed. Perhaps, you might think, it will explain why the global financial crisis happened, why growth has been so slow to pick up and why wages have stagnated. But, as Prof Steve Keen explains to Phil Dobbie, the papers do little other than tweak the edges of conventional theory. It’s far from a fundamental rethink, and some of the basic errors of economics – such as the assumption that the economy will always return to equilibrium – remain unchallenged. Hosted on Acast. See acast.com/privacy for more information.

Boris Johnson has, once again, argued that money saved in fees to the EU can be used to fund better healthcare in Britain. His argument assumes the government is run like a household budget, ignoring the ability to create money. Yet we are familiar with the idea of money creation, with central banks injecting millions, or billions in the US, into the economy through bond purchases. Phil Dobbie explores the disconnect between quantitative easing and government austerity programs. He asks Prof Steve Keen, if a central bank creates money, why not simply inject it into the government’s coffers? Hosted on Acast. See acast.com/privacy for more information.