Fri 04 Apr 2025 - Any actuary who was practising in 2007 would remember, not only the Global Financial Crisis, but the predictions of economists beforehand that conditions in 2008 would be "benign", and the claims afterwards that the GFC was a "Black Swan Event" which no-one could have seen coming (see https://cepr.org/voxeu/columns/no-one-saw-coming-or-did-they).
However, according to Hyman Minsky's "Financial Instability Hypothesis", such events are to be expected. Professor Keen developed a complex-systems model of Minsky's hypothesis, which led to him warning of the GFC before it happened--see https://rwer.wordpress.com/2010/05/13/keen-roubini-and-baker-win-revere-award-for-economics-2/ (Short URL: https://l1nq.com/uM4c7).
The failure by the dominant paradigm in economics to anticipate the largest economic crisis since the Great Depression is emblematic of fundamental flaws in that paradigm, and yet it persists because the generational change that leads to new paradigms arising in the physical sciences does not occur in economics. A New Economics is needed, but it will not arise from within the mainstream of the discipline, and nor will it be taught at Universities. Professor Keen has integrated the work of many non-mainstream economists into a new paradigm best described as Complex Systems Economics, and he has developed a simulation and data analysis program to support it (once called Minsky, now renamed as Ravel).
This webinar will show how a macroeconomics which explains and predicts events like the GFC can be derived from simple macroeconomic definitions, and it will touch on the many other areas where A New Economics upends the conventional wisdom--from the theories of supply and demand to finance theory.
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| Members | Book for free |
| Non-members | £45 |