Tuesday, 11 October 2011

Steve Keen's 'Debunking Economics' Reviewed by George Monbiot

Today's Guardian has featured a lengthy review of Steve Keen's revised and expanded edition of Debunking Economics. This comes just a week after the book's launch, which included lectures from Steve Keen and Ann Pettifor.

In the Guardian review, George Monbiot explains Keen's stance on today's economic state in layman's terms. He also credits Keen with being one of few economists to predict the current economic crisis. Keen is an avid blogger and provides a wealth of financial and economic information on his web site.

Keen's book, along with Monbiot's review, explains that the problem with our current economic system - as well as the Great Depression of the 1930's - is that governments, economists and banks presume the way to handle financial crisis is to allow the banks to create more money. This is the cause of many recent 'bailouts'. However, Monbiot writes of Keen's viewpoint: 'The crippling sums spent on both sides of the Atlantic on refinancing the banks are a complete waste of money. They have not and they will not kickstart the economy, because M0 money supply is not the determining factor.' (M0 money refers to money that is created by the central banks.)

Instead of assisting banks with their debts, Keen argues that relief money will go further when given directly to families to reduce their own private debts. Monbiot reminds us of this, and ends his article with a compelling call to action:

'Governments and central bankers now have an unprecedented opportunity to learn from the catastrophic mistakes they've made. It is an opportunity they seem determined not to take.'

To learn more about the causes and possible solutions to the financial crisis, read Steve Keen's Debunking Economics, now avaiable from Zed Books. Essential for anyone who has ever doubted the advice or reasoning of economists, Debunking Economics provides a signpost to a better future.

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