About this episode

Dr. Steve Keen discusses the overlooked role of private debt in economic instability and critiques mainstream economic models.

👉 Download my 3-Book Rebel Economist Bundle (Free this week here): https://www.stevekeen.com Why do mainstream economics models fail to predict financial crises? Economist Steve Keen explains the ignored role of private debt. Mainstream economics often overlooks the mechanics of how banks create money, leading to a fundamental misunderstanding of our financial system. This discussion breaks down why conventional models fail to account for the massive impact of private debt on our economy. If you have ever questioned why standard forecasts miss the mark during market downturns, this analysis provides the missing context. Steve Keen argues that private debt acts as the primary engine behind economic booms and busts, rather than government spending or interest rates alone. By examining the reality of credit creation, you will gain a clearer picture of what actually drives financial instability. We also address common misconceptions surrounding government debt and how it functions compared to private lending. Subscribe for weekly economic theory breakdowns, and comment below with your thoughts on whether private debt or government policy is the bigger risk to the economy. Who is Dr…

People in this episode

Host: Dr. Steve Keen

Topics covered

• private debt
• financial crises
• economic models
• credit creation
• government debt

Keywords

• private debt
• financial crises
• economic models
• credit creation
• government spending

Mentioned in this episode

Organizations: Rebel Economist Bundle

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