Debunking Economics - the podcast

One of the reasons people voted for Brexit was to “take control of our borders”. Around the world, western leaders are echoing a similar message. It seems migrants are viewed more as a drain on resources than a boost to the economic output of a country. At the other end of the spectrum, there are some who argue that the world should have complete labour mobility and, if people could live where they wanted, then world GDP would double. Phil Dobbie asks Prof Steve Keen where this the optimum point on the spectrum. Is labour mobility a good thing or a bad thing? Hosted on Acast. See acast.com/privacy for more information.

A new law in New Zealand prevents foreign buyers from acquiring homes in there. It’s a response to rising house prices which, the government claims, is being driven by New Zealanders being outbid by people from overseas. Home ownership in New Zealand is now at its lowest level since 1951. So, will the plan work? Phil Dobbie asks Prof Steve Keen. Hosted on Acast. See acast.com/privacy for more information.

The spread of yield between short and long term US Treasuries is narrowing. It could even invert, meaning the yield is higher on short term Treasuries than long dated ones. This is precisely what happened prior to every US recession – so does that mean another is on the way. A listener to the podcast wrote asking why yield curve inversion is such a reliable indicator of recession, if indeed it is? Phil Dobbie gives a quick explanation of what yield curves are, and Prof Steve Keen gives his reasoning on why it is flattening in the US right now. And does it mean a recession is on the way? Hosted on Acast. See acast.com/privacy for more information.

Robinson Crusoe lives on a desert island with Man Friday. There’s no need for money. But then Woman Saturday comes along, selling goods that both men want to acquire, and they devise the concept of money, which she quickly grabs the lions share of. Next, they discover a large village on the other side of the island. How does that change the value of their three-person economy when they introduce an island-wide currency? Then, when they find a neighbouring island with a very productive economy, what is their money worth now? Phil Dobbie takes Prof Steve Keen through a series of hypotheticals, to understand the role money plays, right from its origins. Hosted on Acast. See acast.com/privacy for more information.

He is running the only country in the G7 to see economic growth accelerate right now. His followers support him however much mud is slung his way. World leaders seem to be know towing to his demands for better trade deals, even though some would argue it smacks of protectionism. So, is Donald Trump doing a good job for America. In this edition of the Debunking Economics podcast Professor Steve Keen describes the US as a Mad Max economy – he tells Phil Dobbie the benefits will be short lived. Listen to find out why. Hosted on Acast. See acast.com/privacy for more information.

Governments have been using the terms ‘fiscal conservatism’ and ‘austerity’ to bring down government spending. Often it’s meant transferring government commitments (like on education) to private or individual spending (like student loans). Phil Dobbie asks Prof Steve Keen if this a sensible way to encourage growth. If we accept that more spending by government increases the availability of money for people to spend, where do you draw the line? Isn’t there a risk that the government does too much, crowding out the activities of the private sector? Hosted on Acast. See acast.com/privacy for more information.

There was a time when universities embraced a diversity of thought – something that’s critical in a discipline as embryonic as economics. With so many neo-classic economists caught by surprise with the 2008 financial crisis, many would welcome alternatives to the models that served them so badly. Yet, in this podcast, Prof Steve Keen suggests to Phil Dobbie that the crisis seems to have made the university sector even more adamant to stick to mainstream theory and push aside anybody suggesting there might be a better way of looking at it all.  Hosted on Acast. See acast.com/privacy for more information.

In this podcast Prof Steve Keen and Phil Dobbie revisit the velocity of money, with a focus on how increasing credit is a major determinant in why the speed of money transfers has been slowing markedly since the eighties. But, it’s not just that. As Steve observes, its part of a complex system. Far more complex than Friedman’s MV=PY equation. We also include comments from listeners who listened to the first podcast on this topic. Hosted on Acast. See acast.com/privacy for more information.

There’s the theory that the supply of money is a major contributor to the rate of inflation. Prof Steve Keen says the central banks have spent the last ten years unsuccessfully trying to demonstrate as much. The need for money to be issued to cover government debt has often been levelled as a cause of inflation and a reason for the austerity measures that have been so prevalent in the last decade. Nobody wants to end up like Zimbabwe, right? In this podcast Phil Dobbie asks Prof Steve Keen what’s the real cause of inflation, if it’s got little to do with the supply of money. Is it the cost-push argument? If so, why is inflation reluctant to rise back up to pre-financial crisis levels? Hosted on Acast. See acast.com/privacy for more information.

We’re seeing an increase in the rate of ice loss in Antartica – another sign that global warming is worsening, whilst the world’s leader do little to mitigate the problem. In fact, one of those leaders has said it’s all a hoax. But if we had a unified impetus to do something about it could we device economic systems to change our behaviour and resolve the problem? That’s a question Phil Dobbie puts to a jaded Prof Steve Keen who believes we must undergo the shock before we take the problem seriously. So far, the shocks haven’t been pronounced enough. And, whichever way you look at it, the solution will involve compromising our living standards. Hosted on Acast. See acast.com/privacy for more information.