Would the Fiscal Cliff Trigger an Economic Crisis? – Professor Steve Keen, Ph.D.

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What is the fiscal cliff? What would be the result of going over? Recession? Economic crisis?

Professor Steve Keen, Ph.D., winner of the Revere Award, describes in plain language the risks of going over the fiscal cliff.

Dr. Keen provides a full analysis of the “fiscal cliff” in the following paper:



Dr. Keen was one of the handful of economists to realize that a serious economic crisis was coming our way, and to publicly warn of it from as early as December 2005 (http://mpra.ub.uni-muenchen.de/15892/). This, and his pioneering work on modeling debt-deflation, resulted in him winning the Revere Award from the Real World Economics Review (http://rwer.wordpress.com/) for being the economist whose work is most likely to prevent a future financial crisis. He is one of the handful of economists to receive a grant from the Institute for New Economic Thinking (http://www.ineteconomics.org).

Dr. Keen was able to predict the crisis due to economic work that expands upon Keyes, Fischer, and Minsky, utilizing an accounting, flow of funds or circuit model. He was one of the few economists studied for the paper “No One Saw This Coming” (2009) by Bezemer, Dirk J. He is commonly interviewed by TV stations and written up in the press. He is often invited to meetings of financial advisers, hedge funds and economic conferences, world wide.

Dr. Keen maintains a highly influential blog on economics (www.debtdeflation.com/blogs) and his book Debunking Economics is a classic exposition of why Neoclassical economic theory is not only wrong, but more of a threat to the survival of capitalism than any number of left-wing revolutionaries. The second extended edition was published in October 2011.

Dr. Keen is Professor of Economics & Finance at the University of Western Sydney, and author of the popular book Debunking Economics (Zed Books UK, 2001; www.debunkingeconomics.com). He has over 70 academic publications on topics as diverse as financial instability, the money creation process, mathematical flaws in the conventional model of supply and demand, flaws in Marxian economics, the application of physics to economics, Islamic finance, and the role of chaos and complexity theory in economics. His work has been translated into Chinese, German and Russian.

Steve Keen’s Debtwatch blog (http://www.debtdeflation.com/blogs) makes his non-orthodox approach to economics available to the public. The site has over 12,000 subscribers and more than 50,000 unique readers each month.

Dr. Keen’s excellent communication skills were honed in his pre-academic career, which included stints as a school librarian, education officer for an NGO, conference organizer, computer programmer, journalist for the computer press, and economic commentator for ABC Radio National and Radio Australia.