Rebel Economics with Dr. Steve Keen

• Top Economists: Don’t Study Economics! Ditch the textbooks, Understand Reality (They’re lying)

  Learn 50+ Years of Economics in Only 7 Weeks, by applying here: https://www.stevekeen.com(Plus get Ravel — the economic visualization software we reference in this episode — as a bonus if you’re accepted and join.)Top Economist Steve Keen sits down with Richard J. Murphy for an insightful conversation about why textbook economics so often fail in the real world and what to do instead. From the “theory of the second best” to the Cambridge Capital Controversies, from double-entry bookkeeping to sectoral balances, they unpack how bad assumptions create bad policy, and where Steve agrees with MMT on government money creation and where he pushes back on trade.In this episode, you’ll hear:✅ “Textbooks are teaching a lie”: how clean curves hide messy realities✅ Why equilibrium thinking and perfect-competition myths mislead students and policymakers✅ The second-best insight: removing one “distortion” can make outcomes worse✅ Cambridge Capital Controversies and Samuelson’s quiet concession — and why it never reached textbooks✅ Double-entry as first principles for money and macro, not supply–demand parables✅ Where Steve aligns with MMT on deficits and money creation — and why he disputes “exports are a cost, imports a benefit”✅ Climate economics under fire: why trivializing risk derails the response we need✅ What Ravel brings to monetary and macro modeling (and what’s coming next)Key insights:• Start from accounting and definitions, not analogies.• Sectoral balances are conservation laws: one sector’s surplus is another’s deficit.• You can’t fix macro with micro parables; you need dynamic, accounting-consistent models.• Honest economics welcomes critique — even of our own side — when the data and logic demand it.What should Steve and Richard tackle next — deep dive on double-entry and Ravel, or a full episode on climate economics? Tell us below.Subscribe for reality-based economicsLike if this challenged the textbook stories you were taughtShare to spark better debates in policy and classroomsConnectSteve Keen — Website: https://stevekeen.comWho are the guests?Dr. Steve Keen is an economist known for accounting-consistent, dynamic models of money and debt, and the creator of the Minsky and Ravel tools. He challenges textbook myths with operational mechanics.Prof. Richard Murphy, a political economist, author of the Funding the Future blog, and a long-time critic of the failed ideas driving our economy, known for clear explanations of how real-world accounts should shape economic debate.Learn 50+ Years of Economics in Only 7 Weeks, by applying here: https://www.stevekeen.com(Plus get Ravel — the software discussed in this podcast — as a bonus if you’re accepted and join.)#SteveKeen #Economics #DoubleEntry #RichardJMurphy #MMT #Ravel #CambridgeControversies #SecondBest #economicpolicy #economicrecovery #economicimpact

  --------  

  35:11

  --------

  35:11
• "Mainstream economists proved wrong again" Top Economist

  Learn 50+ Years of Economics in Only 7 Weeks, by applying here: https://www.stevekeen.com(Plus get Ravel — the economic visualization software used in this video — as a bonus if you’re accepted and join.)Top Economist Steve Keen explains how government money is actually created — and why most of the money in circulation still comes from private bank lending, not the printing press. With clear double-entry accounting and Ravel demos, Steve shows how deficits create deposits and reserves, why “reserves aren’t money,” and how open-market operations change the mix of assets without magic money trees or looming doomsday math.In this breakdown, you’ll discover:✅ Cash vs digital money: why the press in DC is a sideshow✅ Government spending and taxes in the ledger: deposits up, taxes down — what really changes✅ Reserves 101: what banks can and can’t do with them (and why they aren’t “spendable” money)✅ Deficit mechanics: why deficits create both money and reserves, surpluses destroy them✅ The eight entries you need to model government money creation (beyond simple double entry)✅ Why “borrowed from the private sector” is an accounting myth in loanable-funds models✅ How OMOs and QE actually work: when they create money, when they don’t✅ The data picture: since 2000, most new money has been credit-backed (private), not fiscal✅ Why government negative financial equity is normal — and necessary for private net financial assetsKey insights:• Deficit is not a bug — it’s the feature that creates net financial assets for the private sector.• Reserves are bank-to-central-bank balances; they support payments and bond settlement, not your latte.• Open-market operations with non-banks can create money; purchases from banks swap assets inside the banking system.• Loanable-funds thinking explodes government debt in theory because it excludes money creation in the first place.• Accounting done properly shows government negative financial equity mirrors private positive equity.-----What did you think of the eight-entry walkthrough and the OMO/QE distinctions? Share your thoughts below.Subscribe for reality-based economicsLike if this clarified how deficits, reserves, and QE actually workShare to help others move beyond textbook myths-----Who is Dr. Steve Keen?Dr. Steve Keen is an economist known for accounting-consistent, data-driven models that explain how bank money, private debt, and policy operations shape the real economy. Creator of the Minsky and Ravel tools, he replaces classroom analogies with operational mechanics — essential for engineers, finance professionals, and anyone who wants clarity over ideology.Learn 50+ Years of Economics in Only 7 Weeks, by applying here: https://www.stevekeen.com(Plus get Ravel — the software used in this video — as a bonus if you’re accepted and join.)#usshutdown #finance #BankingSystem #QE #economics #money #Macroeconomics #government

  --------  

  18:15

  --------

  18:15
• Australian housing crash 2025 explained: Top Economist warns

  Learn 50+ Years of Economics in Only 7 Weeks, by applying here: https://www.stevekeen.com(Plus get Ravel — the economic visualization software used in this video — as a bonus if you’re accepted and join.)----Top Economist Steve Keen exposes how “help-to-buy” style policies in Australia (and beyond) inflated house prices, enriched landlords, and pushed home ownership out of reach for younger generations. Using BIS data and Ravel demos, Steve shows why the real driver isn’t “shortage” — it’s mortgage debt growth and the political choice to treat housing as an asset class, not a basic need.In this hard-hitting breakdown, you’ll discover:✅ Why first-home buyer grants and LMI waivers pump prices instead of helping buyers✅ How mortgage debt growth (and its acceleration) drives house prices in multiple countries✅ Why the US subprime story is only mid-pack globally — and why Australia, Canada, NZ, UK went further✅ The landlord windfall effect: policies that look helpful individually but are disastrous collectively✅ Ownership reality check: outright owners down, mortgages and renters up since the late 1980s✅ How “credit-based demand” props up GDP while trapping households in decades of debt✅ Why politicians keep doing it — and what a price-down policy agenda would requireKEY INSIGHTS:• Treating housing as an asset class has produced real house price rises of several multiples since the 1970s in most advanced economies.• Rising mortgage debt causes rising house prices; the tightest links show up when you track changes in the change of mortgage debt.• Australia repeatedly “saved” prices with grants and boosts, shifting credit cycles without fixing affordability.• The result: fewer outright owners, more mortgaged households, more renters — and stagnation as income services debt instead of spending and investment.This isn’t “supply and demand” on a whiteboard. It’s the math of bank-created credit meeting political incentives — and the bill landing on younger households.Want to learn 50 years of real economics in 7 weeks?Apply to Steve’s Seven-Week Rebel Economist Challenge: https://stevekeen.comBonus: Ravel access is included for accepted students who join.What’s your view — should governments target lower house prices rather than “help-to-buy” boosts? Add your thoughts below.Subscribe for reality-based economicsLike if this clarified why affordability keeps getting worseShare to help others see what’s really driving prices----Who is Dr. Steve Keen?Dr. Steve Keen is an economist known for accounting-consistent, data-driven models that explain how bank money and private debt drive booms, busts, and asset bubbles. Creator of the Minsky and Ravel tools, he focuses on real-world dynamics instead of textbook myths — essential for engineers, finance professionals, and anyone who wants operational clarity over ideology.Learn 50+ Years of Economics in Only 7 Weeks, by applying here: https://www.stevekeen.com(Plus get Ravel — the software used in this video — as a bonus if you’re accepted and join.)#HousingCrisis #housingmarket #housingcrisis #FirstHomeBuyer #RealEstate #AssetInflation #SteveKeen #Ravel #Economics #CreditCycles

  --------  

  15:32

  --------

  15:32
• "Use first principles to LEARN the economy" Top Economist

  Learn 50+ Years of Economics in Only 7 Weeks, by applying here: https://www.stevekeen.com(Plus get Ravel — the proprietary economic visualization software used in this video — as a bonus if you’re accepted and join.)Top Economist Steve Keen challenges reasoning by analogy and shows how to analyze the economy from first principles — the way engineers and physicists think. Using double-entry bookkeeping and live Ravel demos, Steve dismantles textbook models like loanable funds, exposes why supply-and-demand curves don’t describe money creation, and builds a dynamic macro model from definitions, not assumptions.In this eye-opening breakdown, you’ll discover:✅ First principles vs analogy: why the engineer’s method beats classroom shortcuts✅ Why the claim that countries are like households is a false analogy for deficits and debt✅ The monetary system’s real foundations: double-entry bookkeeping, not supply and demand curves✅ Ravel demo: taxation, reserves, and sectoral balances explained step by step✅ Why a government surplus equals a private sector deficit, and why that matters✅ A macro model from strict definitions: employment, wage share, private debt, deficit✅ Credit’s central role in cycles, and its tight link with unemployment✅ Why energy belongs inside production functions, grounded in thermodynamics✅ How ideology keeps bad models alive, and how to replace themKey insights:• Engineer it, don’t analogize it: start from accounting identities and conservation laws.• Sectoral balances: public saving, a surplus, reduces private net financial assets by the same amount.• Money creation: banks do not use supply and demand curves; they use double-entry to create deposits when they lend.• Dynamics over equilibrium: definitional dynamics generate cycles; equilibrium is a convenience fantasy.• Credit drives cycles: credit and unemployment move in opposite directions.• Energy is fundamental: changes in energy use track changes in global output remarkably closely.New Book: Money and Macroeconomics from First Principles — for Elon Musk and Other EngineersBuilt for engineers, quants, and practical thinkers who want accounting-consistent, physics-aware economics. Kindle available now; print coming soon.Want to learn 50 years of real economics in 7 weeks?Apply to Steve’s Seven-Week Rebel Economist Challenge: https://stevekeen.comBonus: Ravel access is included for accepted students who join.What did you think of the sectoral-balances demo and the household vs country analogy? Tell us below.Subscribe for reality-based economicsLike if first-principles reasoning clarified deficits, money, and creditShare to help others break free from bad analogies-------Who is Dr. Steve Keen?Dr. Steve Keen is a globally recognized economist who replaces textbook abstractions with accounting-consistent and data-driven models. Creator of the Minsky and Ravel software tools, Steve’s work shows how bank money, private debt, and energy shape real-world cycles. If you think like an engineer or physicist and want operational clarity over ideology, this channel is for you.Learn 50+ Years of Economics in Only 7 Weeks, by applying here: https://www.stevekeen.com(Plus get Ravel — the software used in this video — as a bonus if you’re accepted and join.)#FirstPrinciples #SteveKeen #Ravel #SectoralBalances #MoneyCreation #DoubleEntry #Macroeconomics #Deficit #CreditCycles #EnergyEconomics

  --------  

  10:45

  --------

  10:45
• You’re an IDIOT if you think of economy like this: Top Economist

  Learn 50+ Years of Economics in Only 7 Weeks, by applying here: https://www.stevekeen.com(Plus get Ravel — the proprietary economic visualization software used in this video — as a bonus if you’re accepted and join.)Top Economist Steve Keen challenges reasoning by analogy and shows how to analyze the economy from first principles — the way engineers and physicists think. Using double-entry bookkeeping and live Ravel demos, Steve dismantles textbook models like loanable funds, exposes why supply-and-demand curves don’t describe money creation, and builds a dynamic macro model from definitions, not assumptions.In this eye-opening breakdown, you’ll discover:✅ First principles vs analogy: why the engineer’s method beats classroom shortcuts✅ Why the claim that countries are like households is a false analogy for deficits and debt✅ The monetary system’s real foundations: double-entry bookkeeping, not supply and demand curves✅ Ravel demo: taxation, reserves, and sectoral balances explained step by step✅ Why a government surplus equals a private sector deficit, and why that matters✅ A macro model from strict definitions: employment, wage share, private debt, deficit✅ Credit’s central role in cycles, and its tight link with unemployment✅ Why energy belongs inside production functions, grounded in thermodynamics✅ How ideology keeps bad models alive, and how to replace themKey insights:• Engineer it, don’t analogize it: start from accounting identities and conservation laws.• Sectoral balances: public saving, a surplus, reduces private net financial assets by the same amount.• Money creation: banks do not use supply and demand curves; they use double-entry to create deposits when they lend.• Dynamics over equilibrium: definitional dynamics generate cycles; equilibrium is a convenience fantasy.• Credit drives cycles: credit and unemployment move in opposite directions.• Energy is fundamental: changes in energy use track changes in global output remarkably closely.New Book: Money and Macroeconomics from First Principles — for Elon Musk and Other EngineersBuilt for engineers, quants, and practical thinkers who want accounting-consistent, physics-aware economics. Kindle available now; print coming soon.Want to learn 50 years of real economics in 7 weeks?Apply to Steve’s Seven-Week Rebel Economist Challenge: https://stevekeen.comBonus: Ravel access is included for accepted students who join.What did you think of the sectoral-balances demo and the household vs country analogy? Tell us below.Subscribe for reality-based economicsLike if first-principles reasoning clarified deficits, money, and creditShare to help others break free from bad analogies-------Who is Dr. Steve Keen?Dr. Steve Keen is a globally recognized economist who replaces textbook abstractions with accounting-consistent and data-driven models. Creator of the Minsky and Ravel software tools, Steve’s work shows how bank money, private debt, and energy shape real-world cycles. If you think like an engineer or physicist and want operational clarity over ideology, this channel is for you.Learn 50+ Years of Economics in Only 7 Weeks, by applying here: https://www.stevekeen.com(Plus get Ravel — the software used in this video — as a bonus if you’re accepted and join.)#FirstPrinciples #SteveKeen #Ravel #SectoralBalances #MoneyCreation #DoubleEntry #Macroeconomics #Deficit #CreditCycles #EnergyEconomics

  --------  

  10:45

  --------

  10:45

More Business podcasts

Trending Business podcasts

About Rebel Economics with Dr. Steve Keen

Rebel Economics with Dr. Steve Keen: Podcasts in Family