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 economics

Like if this challenged the textbook stories you were taught

Share to spark better debates in policy and classrooms

Connect

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

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.)

Why are mainstream economists still teaching the same theories that failed to predict the 2008 Global Financial Crisis? According to renowned economist Steve Keen, the answer lies in a fatal obsession with "equilibrium." While the real world is defined by disruption, volatility, and constant change, neoclassical economics relies on a stagnant model that assumes markets always return to a state of balance, a belief that even the creators of those theories eventually abandoned.

In this video, Steve Keen breaks down why the "equilibrium" mindset is not just mathematically primitive, but dangerous. He explains how this flawed methodology ignored the role of private debt and banking, leading directly to the 2008 crash and the deeply imbalanced economy we face in 2026. Using his proprietary Ravel software and complex system dynamics, Keen demonstrates that capitalism is inherently cyclical and unstable, requiring a radical shift toward "Rebel Economics" to understand the shocks and disturbances of the real world.

Dr. Steve Keen dismantles the myth of self-correcting markets and reveals how relying on micro-foundations to explain macroeconomics is a scientific fallacy. From the warnings of Irving Fisher to the modern breakthroughs of system dynamics, this video provides a roadmap for an economics that actually works.

What You’ll Learn:

✅ The Equilibrium Myth: Why the very people who invented equilibrium thinking (Fisher and Hicks) later rejected it.

✅ Why the 2008 Crash Was "Invisible": How neoclassical models are designed to ignore the dark corners of financial chaos.

✅ Chaos Theory & Economics: How Edward Lorenz’s discoveries in meteorology prove that real-world systems are normally far from equilibrium.

✅ The 4 Incontestable Definitions: A superior way to build macroeconomics using wages, employment, private debt, and government deficits.

✅ Minsky’s Financial Instability Hypothesis: Why private debt—not government spending—is the true engine of economic breakdown.

✅ The Role of "Big Government": How counter-cyclical spending acts as a stabilizer for an inherently unstable system.

What did you think of the critique of neoclassical "micro-foundations"? Share your thoughts on whether equilibrium has any place in modern policy below.

Subscribe for reality-based economics.

Like if this clarified why the "consensus" of economists is often wrong.

Share to help others move beyond textbook myths and understand the true dynamics of debt.

Who is Dr. Steve Keen?

Dr. Steve Keen is an influential economist who has dedicated over 50 years to challenging mainstream economic theories. Since his days as a university student, he has been engaged in a David vs. Goliath battle against conventional economic models. Holding a Ph.D. in economics, Dr. Keen is well-known for his critical analysis and advocacy for more realistic economic approaches.

Curious minds, engineers, and finance professionals will appreciate his methodical breakdown of economic phenomena and his development of the Minsky and Ravel software, which model financial instability through the lens of complex systems theory. Dr. Steve Keen’s work is essential for anyone seeking a deeper understanding of the forces that drive booms, busts, and the evolution of the global economy.

Again, learn 50+ Years of Economics in Only 7 Weeks, by applying here: https://www.stevekeen.com

#moneycreation #equilibrium #systemdynamics #privatedebt #economics #macroeconomics #financialcrisis

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.)

Why is the U.S. struggling to sell its debt in 2026? Renowned economist Steve Keen delivers a revolutionary truth: this isn’t a personal finance failure or a demographic problem. It’s the inevitable collapse of a neoliberal economic model built on debt, deregulation, and financial illusion.

In this must-watch video, Steve Keen breaks down how decades of runaway private debt, deficit denial, and flawed economic theory have pushed the U.S. toward a sovereign debt crisis and collapsing retirement security. He challenges the common narrative that rising interest is the unassailable enemy, revealing instead that the real issue is an economic system that makes even manageable interest payments unsustainable due to its deep-seated debt structure. Keen shows us that the "interest problem" can be solved by fundamentally rethinking our debt-driven economy.

Using historical data, accounting-based economics, and system-dynamics models, Keen explains how mainstream economists ignored banks, money creation, and credit cycles leading directly to disasters like the 2008 financial crash, the growing pension crisis, and today’s unprecedented Treasury demand collapse.

Keen dismantles the myth that markets self-correct and reveals how this belief drove reckless deregulation, Wall Street dominance, failed trade policy, and unsustainable government borrowing. As global buyers pull back from U.S. debt, the consequences are now hitting workers, retirees, and the real economy.

Don't miss this critical analysis of the current economic crisis and the future of capitalism. Understand why the system is failing and what Steve Keen proposes to solve the underlying issues, including the misperceived "interest problem."

✅ Why the U.S. debt market is breaking down

✅ Neoliberalism & its economic impact

✅ Why mainstream economics failed to predict every major crash

✅ Private debt vs. public debt

✅ Solving the interest problem in economics

✅ What comes next for the U.S. economy

-----

What did you think of the eight-entry walkthrough and the OMO/QE distinctions? Share your thoughts below.

Subscribe for reality-based economics

Like if this clarified how deficits, reserves, and QE actually work

Share to help others move beyond textbook myths

-----

Who is Dr. Steve Keen?

Dr. Steve Keen is an influential economist who has dedicated over 50 years to challenging mainstream economic theories. Since his days as a university student, he has been engaged in a David vs. Goliath battle against conventional economic models. Holding a Ph.D. in economics, Dr. Keen is well-known for his critical analysis and advocacy for more realistic economic approaches. His work emphasizes the importance of accounting for financial instability and incorporates elements of complex systems theory.

Curious Minds, Engineers, and Finance Professionals will appreciate his methodical breakdown of economic phenomena and his development of the Minsky software, which models financial crises. Dr. Keen's contributions are crucial for anyone seeking a deeper understanding of how economic systems can impact technological and financial environments. His teachings offer valuable insights into the economic forces shaping our world. By following his analysis, professionals can gain a better grasp of economic dynamics that influence their fields.

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...

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 economics

Like if this challenged the textbook stories you were taught

Share to spark better debates in policy and classrooms

Connect

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

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 reveals how high-cost debt is crushing Americans and why current U.S. policies are steering the economy toward crisis. He explains, with clear double-entry accounting and Ravel visualizations, how private bank lending still creates most of the money in circulation, why government deficits actually increase deposits and reserves, and how open-market operations simply shuffle assets without generating real wealth. Keen argues that the true solution isn’t austerity but a Modern Debt Jubilee—a bold reset that cancels unpayable debts, restores balance sheets, and revives real economic growth without relying on the illusion of “printing money.”

In this breakdown, you’ll discover:

✅ Government Spending & Taxes: How deposits rise and taxes fall—what actually impacts Americans’ wallets.

✅ Bank Reserves 101: What banks can—and can’t—do with reserves, and why it doesn’t relieve high-cost debt.

✅ Deficit Mechanics: Why deficits create money and reserves, and why surpluses can worsen economic stress.

✅ Eight Key Entries: How government money creation works behind the scenes beyond basic double-entry.

✅ Borrowing from the Private Sector: The accounting myth that misleads policymakers and the public.

✅ OMOs & QE Explained: When these tools create real money—and when they fail to.

✅ Money Data Since 2000: Most new money has been private credit, fueling debt pressures.

✅ Government Negative Financial Equity: Why it’s necessary, but why Americans still feel the squeeze from high-cost debt.

Key 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 economics

Like if this clarified how deficits, reserves, and QE actually work

Share to help others move beyond textbook myths

-----

Who is Dr. Steve Keen?

Dr. Steve Keen is an influential economist who has dedicated over 50 years to challenging mainstream economic theories. Since his days as a university student, he has been engaged in a David vs. Goliath battle against conventional economic models. Holding a Ph.D. in economics, Dr. Keen is well-known for his critical analysis and advocacy for more realistic economic approaches. His work emphasizes the importance of accounting for financial instability and incorporates elements of complex systems theory.

Curious Minds, Engineers, and Finance Professionals will appreciate his methodical breakdown of economic phenomena and his development of the Minsky software, which models financial crises. Dr. Keen's contributions are crucial for anyone seeking a deeper understanding of how economic systems can impact technological and financial environments. His teachings offer valuable insights into the economic forces shaping our world. By following his analysis, professionals can gain a better grasp of economic dynamics that influence their fields.

Learn 50+ Years of Economics in Only 7 Weeks, by applying here:...

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 reveals how high-cost debt is crushing Americans and why current U.S. policies are steering the economy toward crisis. He explains, with clear double-entry accounting and Ravel visualizations, how private bank lending still creates most of the money in circulation, why government deficits actually increase deposits and reserves, and how open-market operations simply shuffle assets without generating real wealth. Keen argues that the true solution isn’t austerity but a Modern Debt Jubilee—a bold reset that cancels unpayable debts, restores balance sheets, and revives real economic growth without relying on the illusion of “printing money.”

In this breakdown, you’ll discover:

✅ Government Spending & Taxes: How deposits rise and taxes fall—what actually impacts Americans’ wallets.

✅ Bank Reserves 101: What banks can—and can’t—do with reserves, and why it doesn’t relieve high-cost debt.

✅ Deficit Mechanics: Why deficits create money and reserves, and why surpluses can worsen economic stress.

✅ Eight Key Entries: How government money creation works behind the scenes beyond basic double-entry.

✅ Borrowing from the Private Sector: The accounting myth that misleads policymakers and the public.

✅ OMOs & QE Explained: When these tools create real money—and when they fail to.

✅ Money Data Since 2000: Most new money has been private credit, fueling debt pressures.

✅ Government Negative Financial Equity: Why it’s necessary, but why Americans still feel the squeeze from high-cost debt.

Key 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 economics

Like if this clarified how deficits, reserves, and QE actually work

Share to help others move beyond textbook myths

-----

Who is Dr. Steve Keen?

Dr. Steve Keen is an influential economist who has dedicated over 50 years to challenging mainstream economic theories. Since his days as a university student, he has been engaged in a David vs. Goliath battle against conventional economic models. Holding a Ph.D. in economics, Dr. Keen is well-known for his critical analysis and advocacy for more realistic economic approaches. His work emphasizes the importance of accounting for financial instability and incorporates elements of complex systems theory.

Curious Minds, Engineers, and Finance Professionals will appreciate his methodical breakdown of economic phenomena and his development of the Minsky software, which models financial crises. Dr. Keen's contributions are crucial for anyone seeking a deeper understanding of how economic systems can impact technological and financial environments. His teachings offer valuable insights into the economic forces shaping our world. By following his analysis, professionals can gain a better grasp of economic dynamics that influence their fields.

Learn 50+ Years of Economics in Only 7 Weeks, by applying here:...

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 reveals how high-cost debt is crushing Americans and why current U.S. policies are steering the economy toward crisis. He explains, with clear double-entry accounting and Ravel visualizations, how private bank lending still creates most of the money in circulation, why government deficits actually increase deposits and reserves, and how open-market operations simply shuffle assets without generating real wealth. Keen argues that the true solution isn’t austerity but a Modern Debt Jubilee—a bold reset that cancels unpayable debts, restores balance sheets, and revives real economic growth without relying on the illusion of “printing money.”

In this breakdown, you’ll discover:

✅ Government Spending & Taxes: How deposits rise and taxes fall—what actually impacts Americans’ wallets.

✅ Bank Reserves 101: What banks can—and can’t—do with reserves, and why it doesn’t relieve high-cost debt.

✅ Deficit Mechanics: Why deficits create money and reserves, and why surpluses can worsen economic stress.

✅ Eight Key Entries: How government money creation works behind the scenes beyond basic double-entry.

✅ Borrowing from the Private Sector: The accounting myth that misleads policymakers and the public.

✅ OMOs & QE Explained: When these tools create real money—and when they fail to.

✅ Money Data Since 2000: Most new money has been private credit, fueling debt pressures.

✅ Government Negative Financial Equity: Why it’s necessary, but why Americans still feel the squeeze from high-cost debt.

Key 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 economics

Like if this clarified how deficits, reserves, and QE actually work

Share to help others move beyond textbook myths

-----

Who is Dr. Steve Keen?

Dr. Steve Keen is an influential economist who has dedicated over 50 years to challenging mainstream economic theories. Since his days as a university student, he has been engaged in a David vs. Goliath battle against conventional economic models. Holding a Ph.D. in economics, Dr. Keen is well-known for his critical analysis and advocacy for more realistic economic approaches. His work emphasizes the importance of accounting for financial instability and incorporates elements of complex systems theory.

Curious Minds, Engineers, and Finance Professionals will appreciate his methodical breakdown of economic phenomena and his development of the Minsky software, which models financial crises. Dr. Keen's contributions are crucial for anyone seeking a deeper understanding of how economic systems can impact technological and financial environments. His teachings offer valuable insights into the economic forces shaping our world. By following his analysis, professionals can gain a better grasp of economic dynamics that influence their fields.

Learn 50+ Years of Economics in Only 7 Weeks, by applying here:...

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 reveals how high-cost debt is crushing Americans and why current U.S. policies are steering the economy toward crisis. He explains, with clear double-entry accounting and Ravel visualizations, how private bank lending still creates most of the money in circulation, why government deficits actually increase deposits and reserves, and how open-market operations simply shuffle assets without generating real wealth. Keen argues that the true solution isn’t austerity but a Modern Debt Jubilee—a bold reset that cancels unpayable debts, restores balance sheets, and revives real economic growth without relying on the illusion of “printing money.”

In this breakdown, you’ll discover:

✅ Government Spending & Taxes: How deposits rise and taxes fall—what actually impacts Americans’ wallets.

✅ Bank Reserves 101: What banks can—and can’t—do with reserves, and why it doesn’t relieve high-cost debt.

✅ Deficit Mechanics: Why deficits create money and reserves, and why surpluses can worsen economic stress.

✅ Eight Key Entries: How government money creation works behind the scenes beyond basic double-entry.

✅ Borrowing from the Private Sector: The accounting myth that misleads policymakers and the public.

✅ OMOs & QE Explained: When these tools create real money—and when they fail to.

✅ Money Data Since 2000: Most new money has been private credit, fueling debt pressures.

✅ Government Negative Financial Equity: Why it’s necessary, but why Americans still feel the squeeze from high-cost debt.

Key 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 economics

Like if this clarified how deficits, reserves, and QE actually work

Share to help others move beyond textbook myths

-----

Who is Dr. Steve Keen?

Dr. Steve Keen is an influential economist who has dedicated over 50 years to challenging mainstream economic theories. Since his days as a university student, he has been engaged in a David vs. Goliath battle against conventional economic models. Holding a Ph.D. in economics, Dr. Keen is well-known for his critical analysis and advocacy for more realistic economic approaches. His work emphasizes the importance of accounting for financial instability and incorporates elements of complex systems theory.

Curious Minds, Engineers, and Finance Professionals will appreciate his methodical breakdown of economic phenomena and his development of the Minsky software, which models financial crises. Dr. Keen's contributions are crucial for anyone seeking a deeper understanding of how economic systems can impact technological and financial environments. His teachings offer valuable insights into the economic forces shaping our world. By following his analysis, professionals can gain a better grasp of economic dynamics that influence their fields.

Learn 50+ Years of Economics in Only 7 Weeks, by applying here:...