Modern Economic Theory for the Digital Economy

Interesting interview with professor Steve Keen, where he explains the role of debt in GDP (not currently included in economic models). He models the effects on lending acceleration and repayment options (slow vs. fast) in economic cycles and explains how he was able to successfully predict the 2008 economic crisis.

Contrary to traditional Western fiscal policy, he argues that government deficit is good the economy and ultimately for consumers. This video leaves a lot to think about in terms of what can be done to modernize the way we manage our target rates and money supply.

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