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Top Economist Steve Keen breaks down why the UK’s housing market has gone from “crisis” to “ticking time bomb.” With long-run data and Ravel demos, Steve shows how deregulated mortgage lending not mere shortage pushed the price-to-income ratio from ~4.5× in the post-war era to ~9× today, and lays out two concrete, workable policies to restore affordability: PILL (Property Income Limited Leverage) and an Affordable Housing Authority offering zero-interest mortgages for median and below-median earners.

In this video, you’ll discover:

✅ Why today’s 9× price-to-income rivals 1876 — and what changed after the 1980s

✅ Building societies vs banks: why one didn’t create money and the other does

✅ How bank-created mortgage credit inflates prices far faster than wages

✅ The post-Thatcher break: household debt explodes, real house prices double faster

✅ PILL: cap mortgages to a multiple of rental income and phase it down toward ~10×

✅ AHA: zero-interest public lending that turns “housing stress” into manageable payments

✅ Why both must run together (one cools leverage, the other preserves access)

✅ Bonus history: Ford and Edison’s case for interest-free public finance — and why it matters now

Key insights:

• Price without leverage is fiction: new mortgage credit is the main source of housing demand.

• Deregulation shifted lending from building societies to banks — expanding money and bidding up existing homes.

• At 7% interest, over half of lifetime payments are interest; at 0%, typical payments drop near the 30% “stress” threshold.

• Pairing PILL with AHA bends prices down while keeping doors open for average earners.

• Private debt — not public debt — is the core macro risk behind UK housing volatility.

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Who is Dr. Steve Keen?

Dr. Steve Keen is an economist known for accounting-consistent, data-driven models showing how bank money and private debt drive booms, busts, and asset bubbles. Creator of the Minsky and Ravel tools, he replaces classroom myths 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](https://www.stevekeen.com)

(Plus get Ravel — the software used in this video — as a bonus if you’re accepted and join.)

#ukhousing #ukhousingmarket #ukhousing #ukhousesforsale #PILL #AHA #DebtJubilee #SteveKeen #Ravel #Economics #ukeconomy #uk

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 why UK “debt doom” stories keep missing how money is actually created. Using double-entry accounting and Ravel demos, Steve shows the flaw at the heart of scary long-run projections: a textbook model where banks are mere intermediaries. Switch to the real-world model, banks create deposits when they lend, and those exponential debt paths flatten, without freezing pensioners or gutting public services.

In this video, you’ll discover:

✅ Loanable Funds vs reality: why “savers fund borrowers” breaks basic accounting

✅ How banks create money: loans up → deposits up (and what that means for GDP)

✅ Why OBR-style projections explode: models that exclude bank money creation

✅ Deficits in the ledger: spending creates deposits and reserves; surpluses destroy them

✅ Interest and debt ratios: why they taper in an accounting-consistent model

✅ Sterling, inflation, and “confidence”: narratives vs mechanics

✅ Policy takeaway: don’t fix fake problems by creating real ones

Key insights:

• If your model treats banks as pass-through vessels, you’ll miss how credit drives income and nominal GDP.

• Government insolvency in its own currency isn’t the risk; bad accounting is.

• Debt ratios that “go to the moon” are artifacts of the wrong production function for money.

• Sound analysis starts from balance sheets, not vibes: assets, liabilities, equity must balance on each row.

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What did you think of the BOMD vs Loanable Funds comparison? Should fiscal policy be set by accounting-consistent models? Comment below.

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Who is Dr. Steve Keen?

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 replaces classroom parables 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.)

#UKDebt #MoneyCreation #ukeconomy #BOMD #SteveKeen #Ravel #Macroeconomics #FiscalPolicy #BankingSystem

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.

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Steve Keen — Website: https://stevekeen.com

Who 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