steve keen: instability in financial markets: sources and remedies
TRANSCRIPT
8/2/2019 Steve Keen: Instability in Financial Markets: Sources and Remedies
http://slidepdf.com/reader/full/steve-keen-instability-in-financial-markets-sources-and-remedies 1/23
DEG^ Ble`g{gebg- Kg{mde Der~ikdmd~t de @deiebg Oi{hg~r1 Rlw{bgr & [gogndgr R~gpg Hgge
j~~s1,,vvv%ngk~ng`mi~dle%blo,kmlfr Sifg 9 Is{dm 9;/9>- ;39;
Der~ikdmd~t de @deiebdim Oi{hg~r1
Rlw{bgr ien [gogndgr
R~gpg Hgge- S{l`grrl{ l` Gblelodbr & @deiebg- Wedpg{rd~t l` Vgr~g{e Rtnegt8
vvv%ngk~ng`mi~dle%blo,kmlfr
De~{lnwb~dleDe ~jg rggodefmt egpg{/gendef i`~g{oi~j ~l ~jg gblelodb b{drdr ~ji~ kgfie de ;336- ~jg{g dr md~~mg
ndrif{ggoge~ ~ji~ ̀ deiebdim oi{hg~r i{g bji{ib~g{dqgn kt der~ikdmd~t {i~jg{ ~jie r~ikdmd~t% Gpge
Gwfgeg @ioi- ~jg olr~ de`mwge~dim s{lslege~ l` ~jg Bisd~im Irrg~r S{dbdef Olngm *BISO8 @ioi
9463$- elv ibhelvmgnfgr ~ji~ BISO dr r~{lefmt ble~{indb~gn kt ~jg ni~i1
^jg i~~{ib~dle l` ~jg BISO dr ~ji~ d~ l``g{r slvg{`wm ien de~wd~dpgmt smgirdef s{gndb~dler
iklw~ jlv ~l ogirw{g {drh ien ~jg {gmi~dle kg~vgge gzsgb~gn {g~w{e ien {drh%
We`l{~wei~gmt- ~jg gosd{dbim {gbl{n l` ~jg olngm dr sll{„sll{ gelwfj ~l depimdni~g
~jg vit d~ dr wrgn de issmdbi~dler† vjg~jg{ ~jg olngm&r s{lkmgor {g`mgb~ vgihegrrgr de
~jg ~jgl{t l{ de d~r gosd{dbim dosmgoge~i~dle- ~jg `idmw{g l` ~jg BISO de gosd{dbim ~gr~r
dosmdgr ~ji~ olr~ issmdbi~dler l` ~jg olngm i{g depimdn% *@ioi ien @{gebj ;33>- s% ;7$
BISO—r gosd{dbim ngodrg ir i ~jgl{t l` `deiebg jir kgge ibblosiedgn kt ~jg {drg l` kgjipdlw{im
`deiebg- vjdbj i~~{dkw~gr owbj l` ~jg der~ikdmd~t l` `deiebg oi{hg~r ~l ~jg mdod~gn ien jgw{dr~dbimmt
l{dge~gn blfed~dpg bisibd~dgr l` ib~wim ~{ing{r *Hijegoie ien ^pg{rht 94648 Hijegoie ;332$% Vjdmg
~jdr dr bmgi{mt ie dosl{~ie~ irsgb~ l` der~ikdmd~t- D vdmm ~ihg i nd``g{ge~ ~ibh ien rd~wi~g ot gzsmiei~dle
de ~jg de~gf{i~gn oib{l/`deiebdim pdrdle l` Jtoie Oderht—r @deiebdim Der~ikdmd~t Jtsl~jgrdr *@DJ$%
S{gpdlwr sisg{r jipg issmdgn Oderht—r pdrdle ~l oib{lgblelodbr *Hgge 94478 Hgge 94468 Hgge;3338 Hgge ;399$8 de ~jdr sisg{ D vdmm `lbwr le ~jg dosmdbi~dler l` Oderht—r ieimtrdr `l{ ~jg kgjipdlw{
l` ̀ deiebdim oi{hg~r%
I mgef~jt s{gmwng dr egbgrri{t kg`l{g D blerdng{ Oderht—r ieimtrdr l` ̀ deiebdim oi{hg~r- rdebg sir~
gzsg{dgebg jir rjlve ~ji~ i eglbmirrdbim sg{rsgb~dpg le gblelodbr *vjdbj ~jg pir~ oial{d~t l`
slmdbt oihg{r jipg- ir vgmm ir olr~ gblelodr~r$ lkr~{wb~r blos{gjgerdle l` ~jg mdeh Oderht
slr~wmi~gr kg~vgge ngk~ ien irrg~ s{dbgr%
I S{dog{ le Oderht
Oderht gealtgn i r~{lef `lmmlvdef iolefr~ Slr~ Hgtegrdie gblelodr~r- kw~ jg vir imolr~blosmg~gmt dfel{gn kt eglbmirrdbim gblelodr~r kg`l{g ~jg b{drdr% Kg{eiehg—r ~{gi~oge~ l` jdo dr el~
i~tsdbim1
Jtoie Oderht *9466$ ien Bji{mgr Hdenmgkg{fg{ *946:$ jipg de rgpg{im smibgr i{fwgn `l{
~jg dejg{ge~ der~ikdmd~t l` ~jg `deiebdim rtr~go kw~ de nldef rl jipg jin ~l ngsi{~ `{lo
~jg irrwos~dle l` {i~dleim gblelodb kgjipdlw{† XI `ll~el~g innr_ D nl el~ nget ~jg
slrrdkmg dosl{~iebg l` d{{i~dleimd~t de gblelodb md`g8 jlvgpg{ d~ rggor ~ji~ ~jg kgr~
{grgi{bj r~{i~gft dr ~l swrj ~jg {i~dleimd~t slr~wmi~g ir `i{ ir d~ vdmm fl% *Kg{eiehg ;333-
s% >2$
Elv- i`~g{ ~jg b{drdr ~ji~ jdr ~jgl{t ie~dbdsi~gn- eglbmirrdbim gblelodr~r i{g sitdef rlog i~~ge~dle
~l jdr jtsl~jgrdr- ien ~jg{g jir kgge i~ mgir~ leg i~~gos~ ~l kwdmn i Egv Hgtegrdie olngm l` i hgtsjgelogele de Oderht—r jtsl~jgrdr- i ngk~/ng`mi~dle *H{wfoie ien Gffg{~rrle ;393$% Jlvgpg{- ~l
8/2/2019 Steve Keen: Instability in Financial Markets: Sources and Remedies
http://slidepdf.com/reader/full/steve-keen-instability-in-financial-markets-sources-and-remedies 2/23
DEG^ Ble`g{gebg- Kg{mde Der~ikdmd~t de @deiebg Oi{hg~r1 Rlw{bgr & [gogndgr R~gpg Hgge
j~~s1,,vvv%ngk~ng`mi~dle%blo,kmlfr Sifg ; Is{dm 9;/9>- ;39;
~jlrg l` wr vjl i{g el~ egv ~l Oderht- d~ dr ji{n ~l {gblfedrg iet pgr~dfg l` ~jg @deiebdim Der~ikdmd~t
Jtsl~jgrdr de H{wfoie—r vl{h% ^jdr {gib~dle dr kirgn el~ og{gmt le Oderht—r gzsmdbd~ ngedim ~ji~ jdr
jtsl~jgrdr blwmn kg olngmmgn ̀ {lo i eglbmirrdbim sg{rsgb~dpg *Oderht 94:; - s% 7$-9 kw~ le vitr de
vjdbj d~ dr r~{db~mt deblosi~dkmg vd~j Egv Hgtegrdie og~jlnlmlft% ̂ jg{g i{g oiet ̀ ibg~r ~l ~jdr- kw~
D vdmm `lbwr le ~vl ~ji~ i{g b{wbdim ~l ~jg mdeh kg~vgge ~jg @DJ ien ̀ deiebdim oi{hg~ der~ikdmd~t1
ndrgywdmdk{dwo ien genlfgelwr olegt%
Ndrgywdmdk{dwoOderht s{gbw{rl{r Rbjwosg~g{ ien @drjg{ ibbgs~gn ~ji~ bisd~imdro vir imvitr de ndrgywdmdk{dwo%
Rbjwosg~g{ riv der~ikdmd~t ir de~{derdb ~l bisd~imdro- ien {gfi{ngn d~ ir el~ i ̀ miv- kw~ ir ~jg rlw{bg
l` bisd~imdro—r pd~imd~t *Rbjwosg~g{ 94;:$% @drjg{- ir ie islr~i~g ̀ {lo eglbmirrdbim gywdmdk{dwo
olngmmdef i`~g{ ~jg F{gi~ Ngs{grrdle {wdegn jdo- sw~ ~jg egbgrrd~t ̀ l{ ndrgywdmdk{dwo olngmmdef pg{t
bmgi{mt„gpge ̀ l{ ~jlrg vjl kgmdgpg ~ji~ bisd~imdro dr ̀ wenioge~immt r~ikmg% @drjg{ i{fwgn ~ji~- gpge
d` i ~gengebt ~lvi{nr gywdmdk{dwo dr irrwogn- ir i oi~~g{ l` ̀ ib~- imm gblelodb pi{dikmgr vdmm kg de
ndrgywdmdk{dwo i~ imm ~dogr de ~jg {gim gblelot% Gblelodbr ~jgl{t ~jg{g`l{g owr~ kg ndrgywdmdk{dwo
de ei~w{g1
‚Vg oit ~ge~i~dpgmt irrwog ~ji~- l{ndei{dmt ien vd~jde vdng mdod~r- imm- l{ imolr~ imm-
gblelodb pi{dikmgr ~gen- de i fgeg{im vit- ~lvi{n i r~ikmg gywdmdk{dwo%%% Kw~ † Egv
ndr~w{kiebgr i{g- jwoiemt rsgihdef- rw{g ~l lbbw{- rl ~ji~- de ib~wim `ib~- iet pi{dikmg dr
imolr~ imvitr iklpg l{ kgmlv ~jg dngim gywdmdk{dwo%%%
^jgl{g~dbimmt ~jg{g oit kg„de `ib~- i~ olr~ ~dogr ~jg{g owr~ kg„lpg{/l{ weng{/
s{lnwb~dle- lpg{/ l{ weng{/blerwos~dle- lpg{/ l{ weng{/rsgendef- lpg{/ l{ weng{/
ripdef- lpg{/ l{ weng{/depgr~oge~- ien lpg{ l{ weng{ gpg{t~jdef gmrg% D~ dr ir ikrw{n ~l
irrwog ~ji~- `l{ iet mlef sg{dln l` ~dog- ~jg pi{dikmgr de ~jg gblelodb l{fiedqi~dle- l{
iet si{~ l` ~jgo- vdmm +r~it sw~-+ de sg{`gb~ gywdmdk{dwo- ir ~l irrwog ~ji~ ~jg I~mie~db
Lbgie bie gpg{ kg vd~jlw~ i vipg%— *@drjg{ 9422- s% 2248 gosjirdr inngn$
Oderht vge~ ̀ w{~jg{ ~jie Rbjwosg~g{ ien @drjg{ ~l i{fwg ~ji~ gywdmdk{dwo d~rgm` vir dejg{ge~mtwer~ikmg- ien ble~idegn ~jg rggnr l` ndrir~g{ ir vgmm ir l` klwe~t% Kgbiwrg r~ikdmd~t vir ~jg
gzbgs~dle {i~jg{ ~jie ~jg el{o de i bisd~imdr~ gblelot- iet sg{dln l` r~ikdmd~t vdmm jipg kgge
s{gbgngn kt i ol{g ~w{kwmge~ ~dog8 ien kgbiwrg ~jg ̀ w~w{g vir webg{~ide- i sg{dln l` ~{ieywdmmd~t
vlwmn mgin ~l bisd~imdr~r {gpdrdef ~jgd{ gzsgb~i~dler wsvi{nr1
R~ikmg f{lv~j dr deblerdr~ge~ vd~j ~jg oieeg{ de vjdbj depgr~oge~ dr ng~g{odegn de ie
gblelot de vjdbj ngk~/`deiebgn lveg{rjds l` bisd~im irrg~r gzdr~r- ien ~jg gz~ge~ ~l
vjdbj rwbj ngk~ `deiebdef bie kg bi{{dgn dr oi{hg~ ng~g{odegn% D~ `lmmlvr ~ji~ ~jg
`wenioge~im der~ikdmd~t l` i bisd~imdr~ gblelot dr wsvi{n% ^jg ~gengebt ~l ~{ier`l{o
nldef vgmm de~l i rsgbwmi~dpg depgr~oge~ kllo dr ~jg kirdb der~ikdmd~t de i bisd~imdr~
gblelot% *Oderht 94:;- s% 06$
Oderht—r bmirrdb sj{irg ~ji~ ”R~ikdmd~t † dr ngr~ikdmdqdef‟ *Oderht 94:;- s% 939$ gebisrwmi~gr jdr
btbmdbim pdrdle l` bisd~imdro%; Iet i~~gos~ ~l rjlgjl{e ~jdr de~l ~jg blosi{i~dpg r~i~db- rjd`~def
gywdmdk{dwo og~jlnlmlft l` Egv Hgtegrdie oib{lgblelodbr dr bg{~ide ~l bi{dbi~w{g jdr ieimtrdr
{i~jg{ ~jie nl d~ awr~dbg%
Genlfgelwr OlegtKiehr smit i b{wbdim {lmg de Oderht—r ieimtrdr kgbiwrg ~jgt bie genlfgelwrmt gzsien ~jg olegt
rwssmt de {grslerg ~l ge~{gs{gegw{dim l{ Sleqd @deiebg ngoienr ̀ l{ ̀ wenr% ̂ jdr gosjirdr wsle ~jg
b{wbdim {lmg l` kiehr bie kg ~{ibgn kibh ~l Oderht—r SjN inpdrl{ Rbjwosg~g{- vjl i{fwgn ~ji~
depgr~oge~ dr el~ `deiebgn kt ripdefr- kw~ kt ~jg genlfgelwr gzsierdle l` ~jg olegt rwssmt kt
kiehr1
8/2/2019 Steve Keen: Instability in Financial Markets: Sources and Remedies
http://slidepdf.com/reader/full/steve-keen-instability-in-financial-markets-sources-and-remedies 3/23
DEG^ Ble`g{gebg- Kg{mde Der~ikdmd~t de @deiebg Oi{hg~r1 Rlw{bgr & [gogndgr R~gpg Hgge
j~~s1,,vvv%ngk~ng`mi~dle%blo,kmlfr Sifg 2 Is{dm 9;/9>- ;39;
Gpge ~jlwfj ~jg blepge~dleim iervg{ ~l lw{ ywgr~dle dr el~ lkpdlwrmt ikrw{n- tg~ ~jg{g
dr iel~jg{ og~jln l` lk~idedef olegt `l{ ~jdr sw{slrg- vjdbj † nlgr el~ s{grwsslrg
~jg gzdr~gebg l` ibbwowmi~gn {grwm~r l` s{gpdlwr ngpgmlsoge~- ien jgebg oit kg
blerdng{gn ir ~jg lemt leg vjdbj dr ipidmikmg de r~{db~ mlfdb% ^jdr og~jln l` lk~idedef
olegt dr ~jg b{gi~dle l` sw{bjirdef slvg{ kt kiehr† D~ dr imvitr i ywgr~dle- el~ l`
~{ier`l{odef sw{bjirdef slvg{ vjdbj im{gint gzdr~r de rloglegr slrrgrrdle- kw~ l` ~jg b{gi~dle l` egv sw{bjirdef slvg{ lw~ l` el~jdef% *Rbjwosg~g{ 942>- s% 62$
Rbjwosg~g{ ~jwr riv depgr~oge~ ir kgdef s{doi{dmt ̀ deiebgn el~ lw~ l` deblog- kw~ lw~ l` ~jg
deb{girg de ~jg olegt rwssmt biwrgn kt kiehr drrwdef mlier ~l ge~{gs{gegw{r„vjg{g ~jdr deb{girg
de ~jg olegt rwssmt vir gzib~mt oi~bjgn kt ien biwrgn kt ie deb{girg de ngk~%
Rbjwosg~g{—r ge~d{gmt ~jgl{g~dbim i{fwoge~r le kl~j ~jg ei~w{g l` kiehdef ien ~jg wm~doi~g rlw{bg
l` ̀ deiebg ̀ l{ depgr~oge~ {gbgdpgn rwkrgywge~ rwssl{~ ̀ {lo gosd{dbim {grgi{bjg{r% Kirdm Oll{g
*Oll{g 94648 Oderht- Egmm g~ im% 9449$ lpg{~w{egn ~jg ”olegt owm~dsmdg{‟ olngm l` olegt b{gi~dle
vd~j gosd{dbim {grgi{bj vjdbj rjlvgn ~ji~ kieh mgendef s{gbgngn {grg{pg b{gi~dle *rgg imrl Jlmogr
94048 Bi{sge~g{ ien Ngod{ims ;393$%2 @ioi ien @{gebj blebmwngn ~ji~ bl{{gmi~dler ~jgt `lwen
kg~vgge depgr~oge~ ien ~jg bjiefg de bl{sl{i~g ngk~ mgpgmr ”ble`d{o ~jg dos{grrdle ~ji~ ngk~smitr i hgt {lmg de ibbloolni~def tgi{/kt/tgi{ pi{di~dle de depgr~oge~%‟ *@ioi ien @{gebj 9444- s%
947>$>
Jlvgpg{- {drdef ngk~ nlgr el~ lemt `deiebg depgr~oge~1 d~ imrl ̀ deiebgr rsgbwmi~dle% Ge~g{ Oderht-
vjl gz~gengn Rbjwosg~g{ kt blerdng{def ~jg ngoienr l` Sleqd @deiebdg{r ir vgmm% ^jgrg kl{{lvg{r
nl el~ depgr~- kw~ kwt gzdr~def irrg~r ien jlsg ~l s{l`d~ kt rgmmdef ~jlrg irrg~r le i {drdef oi{hg~%
^jg{g`l{g- wemdhg Rbjwosg~g{—r ge~{gs{gegw{r- vjlrg ngk~r ~lnit bie kg rg{pdbgn ien {gsidn ̀ {lo
s{l`d~r ~lol{{lv- Sleqd @deiebdg{r imvitr jipg ngk~ rg{pdbdef blr~r ~ji~ gzbggn ~jg birj ̀ mlvr ̀ {lo
~jg irrg~r ~jgt sw{bjirgn vd~j kl{{lvgn olegt% ̂ jgt ~jg{g`l{g owr~ gzsien ~jgd{ ngk~r l{ rgmm
irrg~r ~l ble~dewg ̀ web~dledef1
I Sleqd `deiebg wed~ dr i rsgbwmi~dpg `deiebdef wed~ `l{ vjdbj ~jg deblog bloslege~ l`
~jg egi{ ~g{o birj `mlvr `immr rjl{~ l` ~jg egi{ ~g{o de~g{gr~ sitoge~r le ngk~ rl ~ji~
`l{ rlog ~dog de ~jg `w~w{g ~jg lw~r~iendef ngk~ vdmm f{lv nwg ~l de~g{gr~ le gzdr~def
ngk~† Sleqd wed~r bie `wm`dm ~jgd{ sitoge~ blood~oge~r le ngk~r lemt kt kl{{lvdef *l{
ndrslrdef l` irrg~r$† i Sleqd wed~ owr~ deb{girg d~r lw~r~iendef ngk~r% *Oderht 94:;- s%
;>$
Rbjwosg~g{ ien Oderht kl~j riv b{gnd~ olegt b{gi~gn kt ~jg kiehdef rtr~go ir ~jg rlw{bg l` ~jg
iff{gfi~g ngoien de gzbgrr l` deblog% Oderht sw~ ~jdr gzsmdbd~mt1
D` deblog dr ~l f{lv- ~jg `deiebdim oi{hg~r- vjg{g ~jg pi{dlwr smier ~l ripg ien depgr~
i{g {gblebdmgn- owr~ fgeg{i~g ie iff{gfi~g ngoien ~ji~- irdng `{lo k{dg` de~g{pimr- drgpg{ {drdef% @l{ {gim iff{gfi~g ngoien ~l kg deb{girdef- % % % d~ dr egbgrri{t ~ji~ bw{{ge~
rsgendef smier- rwoogn lpg{ imm rgb~l{r- kg f{gi~g{ ~jie bw{{ge~ {gbgdpgn deblog ien
~ji~ rlog oi{hg~ ~gbjedywg gzdr~ kt vjdbj iff{gfi~g rsgendef de gzbgrr l` iff{gfi~g
ie~dbdsi~gn deblog bie kg ̀ deiebgn% D~ `lmmlvr ~ji~ lpg{ i sg{dln nw{def vjdbj gblelodb
f{lv~j ~ihgr smibg- i~ mgir~ rlog rgb~l{r `deiebg i si{~ l` ~jgd{ rsgendef kt god~~def
ngk~ l{ rgmmdef irrg~r% *Oderht 94028 Oderht 94:;$ *Oderht 94:;- s% 08 gosjirdr inngn$
^jdr genlfgelwr olegt sg{rsgb~dpg ~jwr ~{ierbgenr Vim{ir— Miv- vjdbj smitr rwbj i hgt {lmg de
Eglbmirrdbim gywdmdk{dwo olngmmdef kw~ dr pimdn lemt de ie gblelot vd~jlw~ kiehr% De i b{gnd~
gblelot- i nteiodb ndrgywdmdk{dwo ”Vim{ir/Rbjwosg~g{/Oderht—r Miv‟ issmdgr der~gin1 iff{gfi~g
ngoien dr deblog smwr ~jg bjiefg de ngk~- ien ~jdr dr gzsgengn le kl~j fllnr ien rg{pdbgr ien
8/2/2019 Steve Keen: Instability in Financial Markets: Sources and Remedies
http://slidepdf.com/reader/full/steve-keen-instability-in-financial-markets-sources-and-remedies 4/23
DEG^ Ble`g{gebg- Kg{mde Der~ikdmd~t de @deiebg Oi{hg~r1 Rlw{bgr & [gogndgr R~gpg Hgge
j~~s1,,vvv%ngk~ng`mi~dle%blo,kmlfr Sifg > Is{dm 9;/9>- ;39;
̀ deiebdim irrg~r% ̂ jg{g`l{g de i b{gnd~/kirgn gblelot- ~jg{g i{g ~j{gg rlw{bgr l` iff{gfi~g ngoien-
ien ~j{gg vitr de vjdbj ~jdr ngoien dr gzsgengn1
9% Ngoien ̀ {lo deblog gi{egn kt rgmmdef fllnr ien rg{pdbgr- vjdbj s{doi{dmt ̀ deiebgr
blerwos~dle l` fllnr ien rg{pdbgr8
;% Ngoien ̀ {lo {drdef ge~{gs{gegw{dim ngk~- vjdbj s{doi{dmt ̀ deiebgr depgr~oge~8 ien
2% Ngoien ̀ {lo {drdef Sleqd ngk~- vjdbj s{doi{dmt ̀ deiebgr ~jg sw{bjirg l` gzdr~def irrg~r%
Eglbmirrdbim odrde~g{s{g~i~dler l` @drjg{- Oderht & Kiehdef^jg genlfgelwr b{gi~dle l` olegt kt kiehr ogier ~ji~ ~jg mgpgm ien {i~g l` bjiefg l` s{dpi~g ngk~
smit b{wbdim {lmgr de Oderht—r oib{lgblelodbr% De ble~{ir~- eglbmirrdbim ~jgl{t ~{gi~r kiehr ir og{g
de~g{ogndi{dgr kg~vgge ripg{r ien kl{{lvg{r- ̀ l{oimmt dfel{gr ~jgo de NRFG olngmmdef- ien ~{gi~r
~jg mgpgm ien {i~g l` bjiefg l` s{dpi~g ngk~ ir oib{lgblelodbimmt wedosl{~ie~% Kg`l{g ~jg b{drdr-
Kg{eiehg ndrodrrgn @drjg{—r ngk~/ng`mi~dle gzsmiei~dle ̀ l{ ~jg F{gi~ Ngs{grrdle1
kgbiwrg l` ~jg blwe~g{i{fwoge~ ~ji~ ngk~/ng`mi~dle {gs{grge~gn el ol{g ~jie i
{gndr~{dkw~dle `{lo leg f{lws *ngk~l{r$ ~l iel~jg{ *b{gnd~l{r$% Ikrge~ dosmiwrdkmt mi{fg
nd``g{gebgr de oi{fdeim rsgendef s{lsgerd~dgr iolef ~jg f{lwsr- d~ vir rwffgr~gn- sw{g{gndr~{dkw~dler rjlwmn jipg el rdfed`dbie~ oib{l/gblelodb g``gb~r% *Kg{eiehg ;333- s%
;>$
Gpge i`~g{ ~jg b{drdr- vjge s{dpi~g ngk~ jin ~l kg ibhelvmgnfgn ir i ̀ ib~l{- eglbmirrdbim olngmmg{r
derdr~gn ~ji~ ~jg iff{gfi~g mgpgm l` ngk~ vir wedosl{~ie~„lemt d~r ndr~{dkw~dle blwmn oi~~g{1
Dfel{def ~jg `l{gdfe bloslege~- l{ mllhdef i~ ~jg vl{mn ir i vjlmg- ~jg lpg{imm mgpgm l`
ngk~ oihgr el nd``g{gebg ~l iff{gfi~g eg~ vl{~j // leg sg{rler mdikdmd~t dr iel~jg{
sg{rler irrg~†
De vji~ `lmmlvr- vg kgfde kt rg~~def lw~ i `mgzdkmg/s{dbg genlvoge~ olngm de vjdbj
”dosi~dge~‟ ifge~r kl{{lv `{lo ”si~dge~‟ ifge~r- kw~ i{g rwkagb~ ~l i ngk~ mdod~% D` ~jdr
ngk~ mdod~ dr- `l{ rlog {girle- rwnngemt {gnwbgn- ~jg dosi~dge~ ifge~r i{g `l{bgn ~l bw~
rsgendef† *H{wfoie ien Gffg{~rrle ;393- s% 2$
H{wfoie {girrg{~gn ~jdr ieimtrdr de i {gbge~ kmlf- i{fwdef ~ji~ ~jg mgpgm l` ngk~ nlgre—~ oi~~g{-
kgbiwrg ngk~ dr ”olegt vg lvg ~l lw{rgmpgr‟1
Sglsmg ~jdeh l` ngk~—r {lmg de ~jg gblelot ir d` d~ vg{g ~jg riog ir vji~ ngk~ ogier
`l{ ie dendpdnwim1 ~jg{g—r i ml~ l` olegt tlw jipg ~l sit ~l rlogleg gmrg% Kw~ ~ji~—r imm
v{lef8 ~jg ngk~ vg b{gi~g dr kirdbimmt olegt vg lvg ~l lw{rgmpgr- ien ~jg kw{nge d~
doslrgr nlgr el~ deplmpg i {gim ~{ier`g{ l` {grlw{bgr%
^ji~—r el~ ~l rit ~ji~ jdfj ngk~ bie—~ biwrg s{lkmgor „ d~ bg{~idemt bie% Kw~ ~jgrg i{g
s{lkmgor l` ndr~{dkw~dle ien debge~dpgr- el~ ~jg kw{nge l` ngk~ ir dr bloolemtweng{r~lln% *H{wfoie ;399$7
^jg ̀ miv de ~jdr eglbmirrdbim iss{libj ~l ngk~ ien kiehdef dr girdmt dmmwr~{i~gn wrdef kllhhggsdef
~ikmgr%0 De ~jg `lmmlvdef ~vl ~ikmgr- ~{ierib~dler i{g rjlve `{lo ~jg kieh—r slde~ l` pdgv- rl ~ji~
b{gnd~def ie ibblwe~ kt ie deb{girg de ngslrd~r dr rjlve ir i egfi~dpg *rdebg ngslrd~r i{g i mdikdmd~t
`l{ ~jg kieh$ ien ngkd~def ie ibblwe~ kt ie deb{girg de ngk~ dr rjlve ir i slrd~dpg *rdebg mlier i{g
ie irrg~$% ̂ jg eglbmirrdbim pdrdle l` ripdef ir olngmmgn kt H{wfoie *i`~g{ derg{~def ie dosmdbd~
kiehdef rgb~l{ de~l H{wfoie—r kieh/mgrr olngm$ dr rjlve de ^ikmg 9% @{lo ~jdr sg{rsgb~dpg- mgendef
oihgr el nd``g{gebg ~l ~jg mgpgm l` iff{gfi~g ngoien *wemgrr ~jg dosi~dge~ ifge~ jir i oi{hgnmt
jdfjg{ s{lsgerd~t ~l rsgen$ kgbiwrg mgendef nlgr el~ bjiefg ~jg iolwe~ l` olegt de bd{bwmi~dle„d~
lemt im~g{r d~r ndr~{dkw~dle%^ikmg 91 Eglbmirrdbim sg{rsgb~dpg le mgendef
8/2/2019 Steve Keen: Instability in Financial Markets: Sources and Remedies
http://slidepdf.com/reader/full/steve-keen-instability-in-financial-markets-sources-and-remedies 5/23
DEG^ Ble`g{gebg- Kg{mde Der~ikdmd~t de @deiebg Oi{hg~r1 Rlw{bgr & [gogndgr R~gpg Hgge
j~~s1,,vvv%ngk~ng`mi~dle%blo,kmlfr Sifg 7 Is{dm 9;/9>- ;39;
Irrg~r Ngslrd~r *Mdikdmd~dgr$
Ib~dle,Ib~l{ Si~dge~ Dosi~dge~
Oihg Mlie (Mgen /Mgen
^jg genlfgelwr olegt pdrdle dr rjlve de ^ikmg ;% @{lo ~jdr sg{rsgb~dpg- mgendef deb{girgr ~jg
iolwe~ l` olegt de bd{bwmi~dle- ien innr ~l ~jg rsgendef slvg{ l` ~jg ”Dosi~dge~ ifge~‟ *de
s{ib~dbg- el{oimmt gd~jg{ ie depgr~l{ l{ i Sleqd rsgbwmi~l{$ vd~jlw~ rwk~{ib~def ̀ {lo ~jg rsgendefslvg{ l` ~jg ”Si~dge~ ifge~‟% Iff{gfi~g ngoien ~jg{g`l{g {drgr kt ~jg deb{girg de ngk~%
^ikmg ;1 Genlfgelwr olegt sg{rsgb~dpg le mgendef
Kieh Irrg~r Kieh Ngslrd~r *Mdikdmd~dgr$
Ib~dle,Ib~l{ Si~dge~ Dosi~dge~
Oihg Mlie (Mgen /Mgen
^ikmg ; dr el~ lemt ol{g ̀ id~j`wm ~l Oderht—r pdrdle1 d~ dr imrl ol{g {gimdr~db% [gim vl{mn mgendef dr el~
i ~{ier`g{ l` olegt `{lo leg ngslrd~l{—r ibblwe~ ~l iel~jg{—r- kw~ i ble~{ib~ kg~vgge i kieh ien i
kl{{lvg{ de vjdbj ~jg kieh b{gnd~r ~jg kl{{lvg{—r ibblwe~ *~jwr deb{girdef ~jg kieh—r mdikdmd~dgr$6 de
{g~w{e `l{ ~jg kl{{lvg{ if{ggdef ~l kg de ngk~ ~l ~jg kieh `l{ ~jg riog iolwe~ *~jwr deb{girdef ~jg
kieh—r irrg~r$%: ^jdr deb{girgr ~jg iff{gfi~g iolwe~ l` olegt de bd{bwmi~dle- deb{girdef iff{gfi~g
ngoien de ~jg s{lbgrr„ien s{gnlodeie~mt ̀ deiebdef depgr~oge~ l{ rsgbwmi~dle {i~jg{ ~jie
blerwos~dle% Ble~{i{t ~l eglbmirrdbim i s{dl{d mlfdb- ~jg mgpgm l` s{dpi~g ngk~ jir rg{dlwr
oib{lgblelodb g``gb~r- ien smitr i nlodeie~ {lmg de rg~~def irrg~ s{dbgr%
^jg s{doi{t ̀ lbwr l` ~jdr sisg{ dr ~jg mi~~g{- kw~ fdpge ~jg gz~ge~ ~l vjdbj oib{lgblelodbr ien
`deiebg i{g de~g{~vdegn de Oderht—r vl{h- D vlwmn kg {godrr el~ ~l blpg{ jdr de~gf{i~gn pdrdle l`
`deiebdim oib{lgblelodbr% ^jg egz~ rgb~dle dr ie ik{dnfgn gz~{ib~ `{lo Hgge *9447$%
Oderht le Ngk~/n{dpge kllor ien kwr~r
Oderhtr ieimtrdr l` i ̀ deiebdim btbmg kgfder i~ i ~dog vjge ~jg gblelot dr nldef vgmm- kw~ ̀ d{or i{gblerg{pi~dpg de ~jgd{ sl{~`lmdl oieifgoge~- ien ~jdr blerg{pi~dro dr rji{gn kt kiehr% ̂ jg biwrg l`
~jdr jdfj ien wedpg{rimmt s{ib~dbgn {drh ipg{rdle dr ~jg ogol{t l` i el~ ~ll ndr~ie~ rtr~go/vdng
`deiebdim ̀ idmw{g- vjge oiet depgr~oge~ s{lagb~r ̀ lweng{gn- oiet ̀ d{or blwmn el~ ̀ deiebg ~jgd{
kl{{lvdefr- ien oiet kiehr jin ~l v{d~g l`` kin ngk~r% Kgbiwrg l` ~jdr {gbge~ gzsg{dgebg- kl~j
rdngr l` ~jg kl{{lvdef {gmi~dlerjds s{g`g{ gz~{gogmt blerg{pi~dpg gr~doi~gr l` s{lrsgb~dpg birj
`mlvr1 ~jgd{ {drh s{godwor i{g pg{t jdfj%
Jlvgpg{- ~jg blokdei~dle l` i f{lvdef gblelot ien blerg{pi~dpgmt ̀ deiebgn depgr~oge~r ogier
~ji~ olr~ s{lagb~r rwbbggn% ̂ vl ~jdefr f{inwimmt kgblog gpdnge~ ~l oieifg{r ien kiehg{r1
+Gzdr~def ngk~r i{g girdmt pimdni~gn ien wed~r ~ji~ vg{g jgipdmt de ngk~ s{lrsg{gn1 d~ sitr ~l mgpg{+
*Oderht 94:;- s% 07$% Ir i {grwm~- kl~j oieifg{r ien kiehg{r blog ~l {gfi{n ~jg s{gpdlwrmtibbgs~gn {drh s{godwo ir gzbgrrdpg% Depgr~oge~ s{lagb~r i{g gpimwi~gn wrdef mgrr blerg{pi~dpg
gr~doi~gr l` s{lrsgb~dpg birj ̀ mlvr- rl ~ji~ vd~j ~jgrg {drdef gzsgb~i~dler fl {drdef depgr~oge~ ien
irrg~ s{dbgr% ^jg fgeg{im ngbmdeg de {drh ipg{rdle ~jwr rg~r l`` kl~j f{lv~j de depgr~oge~ ien
gzslege~dim f{lv~j de ~jg s{dbg mgpgm l` irrg~r- vjdbj dr ~jg `lweni~dle l` kl~j ~jg kllo ien d~r
gpge~wim blmmisrg%
Ol{g gz~g{eim ̀ deiebg dr eggngn ~l ̀ wen ~jg deb{girgn mgpgm l` depgr~oge~ ien ~jg rsgbwmi~dpg
sw{bjirg l` irrg~r- ien ~jgrg gz~g{eim ̀ wenr i{g `l{~jblodef kgbiwrg ~jg kiehdef rgb~l{ rji{gr ~jg
deb{girgn ls~dodro l` depgr~l{r% ̂ jg ibbgs~gn ngk~ ~l gywd~t {i~dl {drgr- mdywdnd~t ngb{girgr- ien ~jg
f{lv~j l` b{gnd~ ibbgmg{i~gr%
^jdr oi{hr ~jg kgfdeedef l` vji~ Oderht bimmr +~jg gwsjl{db gblelot+ *Oderht 94:;- ss% 9;3/9;>$-vjg{g kl~j mgeng{r ien kl{{lvg{r kgmdgpg ~ji~ ~jg ̀ w~w{g dr irrw{gn- ien ~jg{g`l{g ~ji~ olr~
8/2/2019 Steve Keen: Instability in Financial Markets: Sources and Remedies
http://slidepdf.com/reader/full/steve-keen-instability-in-financial-markets-sources-and-remedies 6/23
DEG^ Ble`g{gebg- Kg{mde Der~ikdmd~t de @deiebg Oi{hg~r1 Rlw{bgr & [gogndgr R~gpg Hgge
j~~s1,,vvv%ngk~ng`mi~dle%blo,kmlfr Sifg 0 Is{dm 9;/9>- ;39;
depgr~oge~r vdmm rwbbggn% Irrg~ s{dbgr i{g {gpimwgn wsvi{n ien ̀ deiebdim der~d~w~dler elv ibbgs~
mdikdmd~t r~{wb~w{gr ̀ l{ kl~j ~jgorgmpgr ien ~jgd{ bwr~log{r +~ji~- de i ol{g rlkg{ gzsgb~i~dleim
bmdoi~g- ~jgt vlwmn jipg {gagb~gn+ *Oderht 94:;- s% 9;2$% ̂ jg mdywdnd~t l` ̀ d{or dr rdowm~ieglwrmt
{gnwbgn kt ~jg {drg de ngk~ ~l gywd~t {i~dlr- oihdef ̀ d{or ol{g rwrbgs~dkmg ~l deb{girgn de~g{gr~
{i~gr% ^jg fgeg{im ngb{girg de mdywdnd~t ien ~jg {drg de de~g{gr~ sidn le jdfjmt mdywdn der~{woge~r
~{dffg{r i oi{hg~/kirgn deb{girg de ~jg de~g{gr~ {i~g- gpge vd~jlw~ iet i~~gos~ kt oleg~i{tiw~jl{d~dgr ~l ble~{lm ~jg kllo% Jlvgpg{- ~jg deb{girgn blr~ l` b{gnd~ nlgr md~~mg ~l ~gosg{ ~jg
kllo- rdebg ie~dbdsi~gn tdgmnr ̀ {lo rsgbwmi~dpg depgr~oge~r el{oimmt ̀ i{ gzbggn s{gpidmdef de~g{gr~
{i~gr- mgindef ~l i ngbmdeg de ~jg gmir~dbd~t l` ngoien `l{ b{gnd~ vd~j {grsgb~ ~l de~g{gr~ {i~gr%
^jg blend~dle l` gwsjl{di imrl sg{od~r ~jg ngpgmlsoge~ l` ie dosl{~ie~ ib~l{ de Oderhtr n{ioi-
~jg Sleqd ̀ deiebdg{ *Oderht 94:;- ss% 63- 997$% ̂ jgrg bisd~imdr~r s{l`d~ kt ~{indef irrg~r le i {drdef
oi{hg~- ien debw{ rdfed`dbie~ ngk~ de ~jg s{lbgrr% ̂ jg rg{pdbdef blr~r ̀ l{ Sleqd ngk~l{r gzbggn ~jg
birj ̀ mlvr l` ~jg kwrdegrrgr ~jgt lve- kw~ ~jg bisd~im iss{gbdi~dle ~jgt ie~dbdsi~g ̀ i{ gzbggnr ~jg
de~g{gr~ kdmm% ^jgt ~jg{g`l{g smit ie dosl{~ie~ {lmg de swrjdef ws ~jg oi{hg~ de~g{gr~ {i~g- ien ie
gywimmt dosl{~ie~ {lmg de deb{girdef ~jg ̀ {ifdmd~t l` ~jg rtr~go ~l i {gpg{rim de ~jg f{lv~j l` irrg~
pimwgr%
[drdef de~g{gr~ {i~gr ien deb{girdef ngk~ ~l gywd~t {i~dlr gpge~wimmt i``gb~ ~jg pdikdmd~t l` oiet
kwrdegrr ib~dpd~dgr- {gnwbdef ~jg de~g{gr~ {i~g blpg{- ~w{edef s{lagb~r ~ji~ vg{g l{dfdeimmt
blerg{pi~dpgmt ̀ wengn de~l rsgbwmi~dpg legr- ien oihdef legr ~ji~ vg{g rsgbwmi~dpg +Sleqd%+ Rwbj
kwrdegrrgr vdmm ̀ den ~jgorgmpgr jipdef ~l rgmm irrg~r ~l ̀ deiebg ~jgd{ ngk~ rg{pdbdef„ien ~jdr ge~{t l`
egv rgmmg{r de~l ~jg oi{hg~ ̀ l{ irrg~r s{dbhr ~jg gzslege~dim f{lv~j l` irrg~ s{dbgr% Vd~j ~jg s{dbg
kllo bjgbhgn- Sleqd ̀ deiebdg{r elv ̀ den ~jgorgmpgr vd~j irrg~r ~ji~ bie el mlefg{ kg ~{ingn i~ i
s{l`d~- ien mgpgmr l` ngk~ ~ji~ bieel~ kg rg{pdbgn ̀ {lo ~jg birj ̀ mlvr l` ~jg kwrdegrrgr ~jgt elv
ble~{lm% Kiehr ~ji~ ̀ deiebgn ~jgrg irrg~r sw{bjirgr elv ̀ den ~ji~ ~jgd{ mgindef bwr~log{r bie el
mlefg{ sit ~jgd{ ngk~r„ien ~jdr {gimdqi~dle mginr ded~dimmt ~l i ̀ w{~jg{ kieh/n{dpge deb{girg de
de~g{gr~ {i~gr% Mdywdnd~t dr rwnngemt owbj ol{g jdfjmt s{dqgn8 jlmng{r l` dmmdywdn irrg~r i~~gos~ ~l rgmm
~jgo de {g~w{e `l{ mdywdnd~t% ̂ jg irrg~ oi{hg~ kgblogr ̀ mllngn ien ~jg gwsjl{di kgblogr i siedb-~jg kllo kgblogr i rmwos%
Ir ~jg kllo blmmisrgr- ~jg ̀ wenioge~im s{lkmgo ̀ ibdef ~jg gblelot dr leg l` gzbgrrdpg ndpg{fgebg
kg~vgge ~jg ngk~r debw{{gn ~l sw{bjirg irrg~r- ien ~jg birj ̀ mlvr fgeg{i~gn kt ~jgo„vd~j ~jlrg
birj ̀ mlvr ngsgendef wsle kl~j ~jg mgpgm l` depgr~oge~ ien ~jg {i~g l` de`mi~dle%
^jg mgpgm l` depgr~oge~ jir blmmisrgn de ~jg i`~g{oi~j l` ~jg kllo- mgipdef lemt ~vl `l{bgr ~ji~ bie
k{def irrg~ s{dbgr ien birj ̀ mlvr kibh de~l ji{olet1 irrg~ s{dbg ng`mi~dle- l{ bw{{ge~ s{dbg de`mi~dle%
^jdr ndmgooi dr ~jg ̀ lweni~dle l` Oderhtr dblelbmir~db sg{bgs~dle l` ~jg {lmg l` de`mi~dle- ien jdr
gzsmiei~dle ̀ l{ ~jg r~if`mi~dle l` ~jg 9463r ien gi{mt 94:3r%
Oderht i{fwgr ~ji~ d` ~jg {i~g l` de`mi~dle dr jdfj i~ ~jg ~dog l` ~jg b{drdr l{ ~jg ngk~ mgpgm dr {gmi~dpgmt
mlv- ~jge ~jlwfj ~jg blmmisrg l` ~jg kllo biwrgr depgr~oge~ ~l rmwos ien gblelodb f{lv~j ~l
`im~g{- {drdef birj ̀ mlvr {isdnmt geikmg ~jg {gsitoge~ l` ngk~ debw{{gn nw{def ~jg kllo% ̂ jg
gblelot bie ~jwr gog{fg ̀ {lo ~jg b{drdr vd~j ndodedrjgn f{lv~j ien jdfj de`mi~dle- kw~ ̀ gv
kieh{ws~bdgr ien i rwr~idegn ngb{girg de mdywdnd~t% ^jwr- ~jlwfj ~jdr blw{rg deplmpgr ~jg ~vde +kinr+
l` de`mi~dle ien ded~dimmt mlv f{lv~j- d~ dr i rgm`/bl{{gb~def ogbjiedro de ~ji~ i s{lmlefgn rmwos dr
ipldngn%
Jlvgpg{- ~jg blend~dler i{g rlle {g/gr~ikmdrjgn ̀ l{ ~jg btbmg ~l {gsgi~ d~rgm`- ien ~jg ipldniebg l` i
~{wg bimiod~t dr mdhgmt ~l mgin ~l i rgbwmi{ ngb{girg de mdywdnd~t s{g`g{gebg% I rgbwmi{ ~{gen ~lvi{n
{drdef ngk~ ~l gywd~t {i~dlr ngpgmlsr- ir gibj egv btbmg kgfder kg`l{g imm ngk~ ibbwowmi~gn de ~jg
mir~ btbmg jin kgge {gsidn% Blmmlywdimmt- ̀ d{or kl{{lv nw{def i kllo ien {gsit nw{def i rmwos-
8/2/2019 Steve Keen: Instability in Financial Markets: Sources and Remedies
http://slidepdf.com/reader/full/steve-keen-instability-in-financial-markets-sources-and-remedies 7/23
DEG^ Ble`g{gebg- Kg{mde Der~ikdmd~t de @deiebg Oi{hg~r1 Rlw{bgr & [gogndgr R~gpg Hgge
j~~s1,,vvv%ngk~ng`mi~dle%blo,kmlfr Sifg 6 Is{dm 9;/9>- ;39;
vjdbj fdpgr ~jg ngk~ ~l deblog {i~dl i ~gengebt ~l {i~bjg~ ws lpg{ ~dog- oihdef ~jg rtr~go ol{g
`{ifdmg%
D` ~jg {i~g l` de`mi~dle dr mlv i~ ~jg ~dog l` ~jg b{drdr ien ngk~ mgpgmr i{g pg{t jdfj- ~jge birj `mlvr
vdmm {goide deingywi~g {gmi~dpg ~l ~jg ngk~ r~{wb~w{gr de smibg% @d{or vjlrg de~g{gr~ kdmmr gzbggn
~jgd{ birj ̀ mlvr vdmm kg ̀ l{bgn ~l weng{~ihg gz~{gog ogirw{gr1 ~jgt vdmm jipg ~l rgmm irrg~r- i~~gos~
~l deb{girg ~jgd{ birj ̀ mlvr *i~ ~jg gzsgerg l` ~jgd{ blosg~d~l{r$ kt bw~~def ~jgd{ oi{fder- l{ fl
kieh{ws~% De ble~{ir~ ~l ~jg de`mi~dlei{t blw{rg- imm ~j{gg bmirrgr l` ib~dle ~gen ~l `w{~jg{ ngs{grr
~jg bw{{ge~ s{dbg mgpgm- ~jwr i~ mgir~ si{~dimmt gzibg{ki~def ~jg l{dfdeim dokimiebg% ̂ jg irrg~ s{dbg
ng`mi~dle {lw~g dr- ~jg{g`l{g- el~ rgm`/bl{{gb~def kw~ {i~jg{ rgm`/{gde`l{bdef- ien dr Oderhtr
gzsmiei~dle l` i ngs{grrdle%
^jg iklpg kirdbimmt ngrb{dkgr Oderhtr sg{bgs~dle l` ie gblelot de ~jg ikrgebg l` i flpg{eoge~
rgb~l{% Vd~j kdf flpg{eoge~- ~jg sdb~w{g bjiefgr de ~vl vitr- kgbiwrg l` ̀ drbim ng`dbd~r ien [grg{pg
Kieh de~g{pge~dler% ̂ jg blmmisrg de birj ̀ mlvr ~ji~ lbbw{r vjge i kllo kgblogr i siedb dr i~ mgir~
si{~mt iogmdl{i~gn kt i {drg de flpg{eoge~ rsgendef„~jg bmirrdb +iw~loi~db r~ikdmdqg{r-+ ~jlwfj ~jdr
~dog rgge de i ol{g oleg~i{t mdfj~% *Hgge 9447- ss% 099/09>$
^ji~—r ~jg ~jgl{t1 jlv vgmm nlgr d~ r~ibh ws ifider~ ~jg ni~i< @d{r~mt- ~jg mgpgm l` s{dpi~g ngk~ jir
bg{~idemt ndrsmitgn ~jg rgbwmi{ ~{gen ~ji~ Oderht dnge~d`dgn *rgg @dfw{g 9$%
@dfw{g 91 Iff{gfi~g S{dpi~g ien Swkmdb Ngk~
Rgblenmt- Oderht—r pg{kim olngm l` ~jg btbmg imrl `lbwrgn s{doi{dmt le ~jg kl{{lvdef kgjipdlw{ l`
~jg ele/`deiebdim kwrdegrr rgb~l{- ien jg{g ~jg btbmdbimd~t jg s{gndb~gn dr imrl lkpdlwr% Kw~ lpg{midn
le ~ls l` d~ dr ie gzslege~dim {drg de `deiebg rgb~l{ ngk~- ir Sleqd @deiebg kgbiog ~jg ndrgirgn
kibhkleg l` ~jg WR gblelot%
94;3 9423 94>3 9473 9403 9463 94:3 9443 ;333 ;393 ;3;33
;3
>3
03
:3
933
9;3
9>3
903
9:3
;33
;;3
;>3
;03
;:3
233
2;3
S{dpi~g
Swkmdb
WR Ngk~ ~l FNS
vvv%ngk~ng`mi~dle%blo,kmlfr
S g { b g e ~ l ` F N S
8/2/2019 Steve Keen: Instability in Financial Markets: Sources and Remedies
http://slidepdf.com/reader/full/steve-keen-instability-in-financial-markets-sources-and-remedies 8/23
DEG^ Ble`g{gebg- Kg{mde Der~ikdmd~t de @deiebg Oi{hg~r1 Rlw{bgr & [gogndgr R~gpg Hgge
j~~s1,,vvv%ngk~ng`mi~dle%blo,kmlfr Sifg : Is{dm 9;/9>- ;39;
@dfw{g ;1 S{dpi~g Ngk~ kt Rgb~l{
@deimmt- ~jg Oderhdie nteiodbr l` ngk~ imrl gzsmide vji~ eglbmirrdbim ieimtrdr vdmm imvitr ̀ den
sg{smgzdef1 ~jg rwnnge ~{ierd~dle ̀ {lo ̂ jg F{gi~ Olng{i~dle ~l ̂ jg F{gi~ Ble~{ib~dle *[lfl``
;399$%
Issmtdef Oderht ~l Oib{lgblelodb Ni~i^jg Vim{ir/Rbjwosg~g{/Oderht s{lslrd~dle ~ji~ iff{gfi~g ngoien dr deblog smwr ~jg bjiefg de
ngk~- ien ~ji~ ~jdr dr gzsgengn le kl~j fllnr ien rg{pdbgr ien sw{bjirgr l` ̀ deiebdim bmidor le
gzdr~def irrg~r- bie kg sw~ de~l i rdosmg gywi~dle *vd~j T ien N r~iendef ̀ l{ elodeim deblog ien
ngk~ mgpgmr- FNS `l{ ~jg elodeim pimwg l` lw~sw~ ien EI^ r~iendef `l{ ”Eg~ Irrg~ ^w{elpg{‟$1
n
T ~ N ~ FNS ~ EI^ ~ n~
*9%9$
Eg~ Irrg~ ̂ w{elpg{ bie kg ̀ ib~l{gn de~l ~jg s{dbg dengz ̀ l{ irrg~r S I- ~dogr ~jgd{ ywie~d~t Y I - ~dogr
~jg ieewim ~w{elpg{ ^ I gzs{grrgn ir i ̀ {ib~dle l` ~jg ewokg{ l` irrg~r 9 I
^ 1
I I I EI^ S Y ^ *9%;$
^jg{g vdmm ~jwr kg i {gmi~dlerjds kg~vgge bjiefg de ngk~ ien ~jg mgpgm l` kl~j gblelodb ib~dpd~t ien
irrg~ s{dbgr%
@lbwrdef le ~jg `l{og{ `l{ elv- d~ dr girdmt rjlve ~ji~ ~jg F{gi~ Olng{i~dle vir n{dpge kt i
rwkr~ie~dim {drg de ngk~/`deiebgn iff{gfi~g ngoien- vjdmg ~jg F{gi~ Ble~{ib~dle bldebdngn vd~j i
n{ioi~db {gpg{rim ̀ {lo {drdef ~l ̀ immdef ngk~%
@dfw{g 21 Iff{gfi~g ngoien ir deblog smwr bjiefg de ngk~
94739477940394079463946794:394:794439447;333;337;393 ;3973
93
;323
>3
73
03
63
:3
43
933
993
9;3
923
Kwrdegrr
@deiebgJlwrgjlmn
Ngk~ ~l FNS kt Rgb~l{
vvv%ngk~ng`mi~dle%blo,kmlfr
S g { b g e ~ l ` F N S
8/2/2019 Steve Keen: Instability in Financial Markets: Sources and Remedies
http://slidepdf.com/reader/full/steve-keen-instability-in-financial-markets-sources-and-remedies 9/23
DEG^ Ble`g{gebg- Kg{mde Der~ikdmd~t de @deiebg Oi{hg~r1 Rlw{bgr & [gogndgr R~gpg Hgge
j~~s1,,vvv%ngk~ng`mi~dle%blo,kmlfr Sifg 4 Is{dm 9;/9>- ;39;
Rdodmi{mt- vjge ~jg {i~g l` bjiefg l` iff{gfi~g ngoien dr blerdng{gn- ~jg{g dr i {gmi~dlerjds
kg~vgge ~jg ibbgmg{i~dle l` ngk~ ien kl~j ~jg {i~g l` bjiefg l` FNS *Kdffr ien Oitg{ ;3938 Kdffr-
Oitg{ g~ im% ;393$ ien ~jg bjiefg de irrg~ s{dbgr14
;
; I I I
n n n n T N FNS S Y ^
n~ n~ n~ n~ *9%2$
^jg {gmi~dlerjds kg~vgge ~jg ”B{gnd~ Ibbgmg{i~l{‟„ng`degn- ̀ lmmlvdef *Kdffr ien Oitg{ ;3938
Kdffr- Oitg{ g~ im% ;393$ ir ~jg {i~g l` bjiefg l` ~jg {i~g l` bjiefg de ngk~ sg{ ieewo- ndpdngn kt
FNS i~ ~jg odnslde~„ien bjiefg de ~jg gosmltoge~ {i~g dr rjlve de @dfw{g >% @i{ `{lo iff{gfi~g
ngk~ el~ kgdef oib{lgblelodbimmt dosl{~ie~- bjiefg de gosmltoge~ dr r~{lefmt bl{{gmi~gn vd~j ~jg
ibbgmg{i~dle l` ngk~%
@dfw{g >1 B{gnd~ Ibbgmg{i~dle ien bjiefg de gosmltoge~
94:394:;94:>94:094::9443944;944>9440944:;333;33;;33>;330;33:;393;39;;39>2 93
0
> 930
7 93
0
0 930
6 930
: 930
4 930
9 936
9%9 936
9%; 936
9%2 936
9%> 936
9%7 936
9%0 936
9%6 936
9%: 936
9%4 936
Elodeim FNS
(Bjiefg de S{dpi~g Ngk~
(Bjiefg de Swkmdb Ngk~
WR Iff{gfi~g Ngoien 94:3/;39;
vvv%ngk~ng`mi~dle%blo,kmlfr
W R . o d m m d l e s % i %
8/2/2019 Steve Keen: Instability in Financial Markets: Sources and Remedies
http://slidepdf.com/reader/full/steve-keen-instability-in-financial-markets-sources-and-remedies 10/23
DEG^ Ble`g{gebg- Kg{mde Der~ikdmd~t de @deiebg Oi{hg~r1 Rlw{bgr & [gogndgr R~gpg Hgge
j~~s1,,vvv%ngk~ng`mi~dle%blo,kmlfr Sifg 93 Is{dm 9;/9>- ;39;
^jg rbimg ien ~dodef l` ~jg nlve~w{e dr owbj girdg{ ~l blos{gjgen `{lo Oderht—r b{gnd~/kirgn
sg{rsgb~dpg ~jie ~jg deblog/lemt sg{rsgb~dpg l` eglbmirrdbim gblelodbr% ̂ jg nlve~w{e de FNS vir
{gmi~dpgmt odel{„`{lo .9>%> ~{dmmdle i~ d~r sgih ~l .92%4 ~{dmmdle i~ d~r mlvslde~- i `imm l` awr~ lpg{ jim`
i ~{dmmdle l{ >' l` elodeim FNS„ien d~ bloogebgn mi~g *de Awmt ;33:$ ien `dedrjgn gi{mt *de Oit;334$ blosi{gn ~l ~jg b{drdr d~rgm`- vjdbj dr fgeg{immt {gfi{ngn ir jipdef r~i{~gn de Iwfwr~ ;336 ien
ble~dewgn fg~~def vl{rg de oib{lgblelodb ~g{or we~dm mi~g ;334%93
^jg nlve~w{e de s{dpi~g iff{gfi~g ngoien vir owbj ol{g rgpg{g1 ̀ {lo .9:%> ~{dmmdle i~ d~r sgih de
Elpgokg{ ;336 ~l .99%> ~{dmmdle de @gk{wi{t ;393- i ̀ imm l` .0%4 ~{dmmdle l{ 2:' lpg{ ;%2 tgi{r% ̂ jg
ngbgmg{i~dle l` ngk~ vir 7 ~dogr f{gi~g{ ~jie iet l~jg{ ngbgmg{i~dle de ~jg ge~d{g slr~/VVDD
sg{dln- ien gpge r~{lefg{ ~jie de ~jg F{gi~ Ngs{grrdle d~rgm`- vjge ~jg oizdowo egfi~dpg pimwg l`
~jg B{gnd~ Ibbgmg{i~l{ vir /9:' l` FNS%
^jg s{l`lwen g``gb~ l` ~jg b{drdr el~ lemt le gosmltoge~ ien FNS- kw~ imrl le irrg~ oi{hg~r- dr elv
`i{ girdg{ ~l blos{gjgen%
^jdr elv k{defr wr ~l Oderht—r ndr~deb~dpg i{fwoge~ ~ji~ ~jg{g i{g *i~ mgir~$ ~vl s{dbg mgpgmr de
bisd~imdro„leg `l{ bloolnd~dgr ien ~jg l~jg{ `l{ bisd~im irrg~r„ien jdr ieimtrdr l` ~jg `deiebdim
nteiodbr ~ji~ bie vgnfg ~jgo isi{~ nw{def rsgbwmi~dpg kwkkmgr%
Oderht le @deiebg1 ^vl S{dbg MgpgmrIr i Slr~ Hgtegrdie- Oderht i{fwgn ~ji~ ~jg s{dbgr l` olr~ gen/blerwog{ bloolnd~dgr i{g rg~ kt i
oi{hws le s{dog blr~ *[gtelmnr 94:68 Kmdeng{ 944:8 Mgg 944:$%99 Jg sl{~{itgn bjiefgr de ~jg s{dbg
mgpgm `l{ ”bw{{ge~ fllnr‟ ir oidemt i blergywgebg l` blr~ s{grrw{gr *mi{fgmt `{lo vifgr ien {iv
oi~g{dimr$ ien bjiefgr ~l oi{hwsr% ̂ jg mi{fgmt dengsgenge~ s{dbg mgpgm l` irrg~r dr kirgn- el~ le ~jg
l{dfdeim blr~ l` s{lnwb~dle l` ~jg irrg~r- kw~ le ~jg eg~ s{grge~ pimwg l` ie~dbdsi~gn birj ̀ mlvr%^jgrg de ~w{e ngsgen le ~jg fgeg{im r~i~g l` gzsgb~i~dler- vjdbj pi{t rtr~goi~dbimmt lpg{ ~jg
94: 394: ;94:>94: 094::9443944;944>9440944:;333;33;;33>;330;33:;393;39;;39>23
;7
;3
97
93
7
3
7
93
97
0
7
>
2
;
9
3
9
;
2
B{gnd~ Ibbgmg{i~dle
Gosmltoge~ Bjiefg
B{gnd~ Ibbgmg{i~dle & Gosmltoge~ Bjiefg *Bl{{?3%04$
vvv%ngk~ng`mi~dle%blo,kmlfr
S { d p i ~ g N g k ~ I b b g m g { i ~ d l e s % i % i r s g { b g e ~ l ` F N S
B j i e f g
d e 9 3 3 o d e w r w e g o s m l t o g e ~ { i
~ g s % i %
3
8/2/2019 Steve Keen: Instability in Financial Markets: Sources and Remedies
http://slidepdf.com/reader/full/steve-keen-instability-in-financial-markets-sources-and-remedies 11/23
DEG^ Ble`g{gebg- Kg{mde Der~ikdmd~t de @deiebg Oi{hg~r1 Rlw{bgr & [gogndgr R~gpg Hgge
j~~s1,,vvv%ngk~ng`mi~dle%blo,kmlfr Sifg 99 Is{dm 9;/9>- ;39;
`deiebdim btbmg- miffdef kgjden bw{{ge~ s{dbgr de i rmwos- {weedef ijgin l` ~jgo de i {gblpg{t ien
kllo- ien i{g ̀ deiebgn mi{fgmt kt Sleqd kl{{lvdef% ̂ jdr sg{rsgb~dpg immlvr ̀ l{ rdfed`dbie~ ndpg{fgebg
kg~vgge ~jg ~vl s{dbg mgpgmr ir gzsgb~i~dler {drg ien ̀ imm lpg{ ~jg ogndwo ~g{o- ien ir ~jg f{lv~j
l` ngk~ ~ji~ `deiebgr Sleqd ib~dpd~t de irrg~ oi{hg~r {drgr ien `immr vd~j ~jgo% Jlvgpg{ lpg{ ~jg pg{t
mlef ~g{o- irrg~ s{dbgr owr~ gpge~wimmt {g~w{e ~l rlog hden l` ji{olet vd~j bw{{ge~ s{dbgr- rdebg
~jg lemt rwr~ideikmg rwssl{~ ̀ l{ irrg~ s{dbgr dr ~jg rimgr l` ~jg bloolnd~dgr ~jgt s{lnwbg% ̂ jg s{dbgrtr~go ~jwr ndrsmitr ̀ i{/`{lo/gywdmdk{dwo nteiodbr- ibbl{ndef ~l Oderht- de ble~{ir~ ~l ~jg
eglbmirrdbim i{fwoge~ ~ji~ ~jg s{dbg rtr~go dr i r~ikdmdrdef ̀ l{bg de i bisd~imdr~ gblelot%
^jdr dosmdgr ~ji~ i rdosmg blosi{drle l` irrg~ s{dbgr ~l blerwog{ s{dbgr bie dnge~d`t kwkkmgr- rdebg
Oderht riv el {girle ̀ l{ i mlef/~g{o ~{gen ̀ l{ ~jg irrg~ ~l blerwog{ s{dbg {i~dl ~l {drg lpg{ ~dog„
~jg lemt kirdr ̀ l{ ~jdr vlwmn kg ~jg bisd~imdqi~dle l` deblog r~{gior fgeg{i~gn kt irrg~r de~l irrg~
s{dbgr% ^jdr dr `girdkmg vd~j rji{g s{dbgr- fdpge {g~idegn gi{edefr ien de si{~dbwmi{ ~jg qg{l/ndpdngen
slmdbdgr l` ̀ d{or mdhg Kg{hrjd{g/Ji~jivit- kw~ el~ vd~j jlwrg s{dbgr%
Gpge fdpge ~jg gzdr~gebg l` i ~{gen ~l ~jg {gim rji{g s{dbg- ~jg bloogebgoge~ l` ~jg ”F{gi~
Olng{i~dle‟ rji{g s{dbg kwkkmg de 9447 dr lkpdlwr *rgg @dfw{g 7$%
@dfw{g 71 ̂ vl s{dbg mgpgmr *rji{gr$
@dfw{g 0 rwk~{ib~r ~jg ~{gen ̀ {lo 9497 ~dmm 9447 ̀ {lo ~jg ni~i%
9493 94;3 9423 94>3 9473 9403 9463 94:3 9443 ;333 ;393 ;3;33
933
;33
233
>33
733
033
633
:33
433
9333
9933
9;33
Dengz *;39;,3;,391 464$
Ogie 9497/9447 *;>7$
^{gen 9497/9447 *;39;,3;,391 7:>$
NADI ng`mi~gn kt ~jg BSD
vvv%ngk~ng`mi~dle%blo,kmlfr
D e n g z 9 4 9 7 ? 9 3 3
8/2/2019 Steve Keen: Instability in Financial Markets: Sources and Remedies
http://slidepdf.com/reader/full/steve-keen-instability-in-financial-markets-sources-and-remedies 12/23
DEG^ Ble`g{gebg- Kg{mde Der~ikdmd~t de @deiebg Oi{hg~r1 Rlw{bgr & [gogndgr R~gpg Hgge
j~~s1,,vvv%ngk~ng`mi~dle%blo,kmlfr Sifg 9; Is{dm 9;/9>- ;39;
@dfw{g 01 NADI odewr gzslege~dim ~{gen 9497/9447
^jg {lmg l` ~jg ibbgmg{i~dle l` ngk~ de n{dpdef ~jgrg irrg~ s{dbg kwkkmgr dr gpdnge~% Gywi~dle *9%2$
bir~r ~jg {lmg l` rsgbwmi~dle le irrg~ s{dbgr de i ̀ i{ nd``g{ge~ mdfj~ ~jie nlgr eglbmirrdbim gblelodbr-
vjdbj rggr rsgbwmi~dle ir idndef de s{dbg ndrblpg{t *Rbjvi{~q- Vlm` g~ im% ;393$% Der~gin- mgpg{ifgn
rsgbwmi~dle smitr i nlodeie~ {lmg de s{dbg ̀ l{oi~dle„mgindef ~l ~jg ngpgmlsoge~ l` ngk~/`deiebgn
kwkkmgr de irrg~ s{dbgr%
^jg gywi~dle ir r~i~gn dfel{gr ~jg `ggnkibh {gmi~dler kg~vgge deblog ien lw~sw~ ien bjiefg de
ngk~- kw~ gpge ~jge d~ dendbi~gr ~ji~ ~jg dosib~ l` ~jg ibbgmg{i~dle de ngk~ vdmm kg ndrsg{rgn ~j{lwfj
i~ mgir~ ̀ dpg jdfjmt iff{gfi~gn pi{dikmgr%9; Bmgi{mt kgjipdlw{im rge~doge~ drrwgr vdmm imrl i``gb~ jlv
owbj ngk~ dr mgpg{gn de~l irrg~ oi{hg~r pg{rwr si{hgn gmrgvjg{g% Eleg~jgmgrr rdfed`dbie~bl{{gmi~dler gzdr~ kg~vgge ngk~ ibbgmg{i~dle ien {gim rji{g s{dbgr *rgg G{{l{) [g`g{gebg rlw{bg el~
`lwen% ien @dfw{g :$- ien grsgbdimmt kg~vgge ibbgmg{i~dle l` ol{~fifg ngk~ ien bjiefg de {gim
jlwrg s{dbgr *rgg @dfw{g 93$%
@dfw{g 6 rjlvr ~jg bl{{gmi~dle l` ~jg ngpdi~dler ̀ {lo ~{gen vd~j ~jg ibbgmg{i~dle l` s{dpi~g b{gnd~
nw{def ~jg [li{def ̂ vge~dgr ien ~jg F{gi~ Ngs{grrdle *miffgn leg tgi{ rdebg ~jg s{g/9473 ngk~
ni~i dr gen/l`/tgi{ ieewim lemt$%
9493 94;3 9423 94>3 9473 9403 9463 94:3 9443 ;333 ;393 ;3;3;33
933
3
933
;33
233
>33
733
033
633
:33
BSD/ng`mi~gn NADI odewr 9497/9447 ^{gen
vvv%ngk~ng`mi~dle%blo,kmlfr
S l d e ~ n g p d i ~ d l e i k l
p g l { k g m l v ~ { g e n -
9 4 9 7 ?
3
3
8/2/2019 Steve Keen: Instability in Financial Markets: Sources and Remedies
http://slidepdf.com/reader/full/steve-keen-instability-in-financial-markets-sources-and-remedies 13/23
DEG^ Ble`g{gebg- Kg{mde Der~ikdmd~t de @deiebg Oi{hg~r1 Rlw{bgr & [gogndgr R~gpg Hgge
j~~s1,,vvv%ngk~ng`mi~dle%blo,kmlfr Sifg 92 Is{dm 9;/9>- ;39;
@dfw{g 61 B{gnd~ Ibbgmg{i~dle ien rji{g s{dbg olpgoge~r 94;;/94>;
@dfw{g : rjlvr ~jg riog {gmi~dlerjds ̀ {lo 94:0 ~dmm ~lnit%
94; 3 94; ; 94; > 94; 0 94; : 942 3 942 ; 942 > 942 0 942 : 94> 3 94>;23
;7
;3
97
93
7
3
7
93
97
;3
233
;73
;33
973
933
73
3
73
933
973
;33
B{gnd~ Ibbgmg{i~dle
NADI Bjiefg
B{gnd~ Ibbgmg{i~l{ & NADI Ngpdi~dle `{lo ^{gen *Bl{{?3%07$
vvv%ngk~ng`mi~dle%blo,kmlfr
B { g n d ~ I b b g m g { i ~ d l e s % i %
S g { b g e ~ l ` F N S * 9 t g i { m i f $
I e e w i m B j i e f g N g p d i ~ d l e ` { l o
^ { g e n N A D I
S g { b g e ~
3
8/2/2019 Steve Keen: Instability in Financial Markets: Sources and Remedies
http://slidepdf.com/reader/full/steve-keen-instability-in-financial-markets-sources-and-remedies 14/23
DEG^ Ble`g{gebg- Kg{mde Der~ikdmd~t de @deiebg Oi{hg~r1 Rlw{bgr & [gogndgr R~gpg Hgge
j~~s1,,vvv%ngk~ng`mi~dle%blo,kmlfr Sifg 9> Is{dm 9;/9>- ;39;
@dfw{g :1 B{gnd~ Ibbgmg{i~dle ien rji{g s{dbg olpgoge~r 94:0/Elv
^jg {gmi~dlerjds kg~vgge ~jg bjiefg de jlwrg s{dbgr ien ~jg ibbgmg{i~dle l` ngk~ rdebg 9443 i{g
ol{g girdmt dnge~d`dgn- `l{ ~j{gg {girler% @d{r~mt- ~jg{g dr el eggn ~l rwk~{ib~ iet ~{gen de {gim jlwrg
s{dbgr s{dl{ ~l ~jg kwkkmg- rdebg ~jg{g dr el {girle ~l gzsgb~ i ~{gen- ien ~jg gosd{dbim ni~i ble`d{or
~ji~ ~jg{g vir eleg% Rgblenmt- ~jg{g dr i rsgbd`db rwkrg~ l` ngk~„ol{~fifg ngk~„vjlrg
ibbgmg{i~dle bie kg nd{gb~mt kg blosi{gn ~l bjiefg de {gim jlwrg s{dbgr% Vjdmg rlog ol{~fifg ngk~
kmggnr de~l gzsgend~w{g le l~jg{ d~gor *grsgbdimmt vd~j ”ol{~fifg gywd~t vd~jn{ivim‟ mlier$ ien
de~l gzsiendef ~jg r~lbh l` jlwrdef- ~jg oial{d~t l` ol{~fifg ngk~ flgr de~l sw{bjirdef gzdr~def
jlwrdef%
^jd{nmt- ~jdr vir ~jg `d{r~ ~{wmt oial{ jlwrg s{dbg kwkkmg de Iog{dbi—r jdr~l{t% Odel{ kwkkmgr i{g
gpdnge~ de 9:47- 9464 ien 9443- kw~ ~jgt i{g og{g Bi~rhdmmr blosi{gn ~l ~jg Gpg{gr~ l` ~jg ;330
kwkkmg% ̂ jg Rwks{dog Kwkkmg bmgi{mt kgfie de 9446 *rgg @dfw{g 4$- ien kw{r~ edeg tgi{r mi~g{% Vd~j
~jdr ni~i {gindmt ipidmikmg rdebg ;333 *Rjdmmg{ ;333$- d~ kgffi{r kgmdg` ~ji~- awr~ 93 ole~jr kg`l{g ~jgsgih- F{ggersie blwmn irrg{~ ~l Blef{grr ~ji~ ~jg{g vir el ei~dleim jlwrdef kwkkmg- ien ~ji~ iet
jlwrg s{dbg ngbmdegr vlwmn ”el~ jipg rwkr~ie~dim oib{lgblelodb dosmdbi~dler‟1
^ji~ ridn- ~jg{g bie kg md~~mg nlwk~ ~ji~ gzbgs~dleimmt mlv de~g{gr~ {i~gr le ~ge/tgi{
^{girw{t el~gr- ien jgebg le jlog ol{~fifgr- jipg kgge i oial{ `ib~l{ de ~jg {gbge~
rw{fg l` jlogkwdmndef ien jlog ~w{elpg{- ien grsgbdimmt de ~jg r~ggs bmdok de jlog
s{dbgr% Im~jlwfj i +kwkkmg+ de jlog s{dbgr `l{ ~jg ei~dle ir i vjlmg nlgr el~ issgi{
mdhgmt- ~jg{g nl issgi{ ~l kg- i~ i odedowo- rdfer l` `{l~j de rlog mlbim oi{hg~r vjg{g
jlog s{dbgr rggo ~l jipg {drge ~l werwr~ideikmg mgpgmr† Im~jlwfj vg bg{~idemt bieel~
{wmg lw~ jlog s{dbg ngbmdegr- grsgbdimmt de rlog mlbim oi{hg~r- ~jgrg ngbmdegr- vg{g
~jgt ~l lbbw{- mdhgmt vlwmn el~ jipg rwkr~ie~dim oib{lgblelodb dosmdbi~dler%*F{ggersie ;337$
94:0 94:: 9443 944; 944> 9440 944: ;333 ;33; ;33> ;330 ;33: ;393 ;39; ;39>23
;7
;3
97
93
7
3
7
93
97
;3
973
9;7
933
67
73
;7
3
;7
73
67
933
B{gnd~ Ibbgmg{i~dle
NADI Bjiefg
B{gnd~ Ibbgmg{i~l{ & NADI Ngpdi~dle `{lo ^{gen *Bl{{?3%2>$
vvv%ngk~ng`mi~dle%blo,kmlfr
B { g n d ~ I b b
g m g { i ~ d l e s % i %
S g { b g e ~ l ` F N S
I e e w i m B j i e f g N g p d i ~ d l e ` { l o
^ { g e n N A D I
S g {
b g e ~
3
8/2/2019 Steve Keen: Instability in Financial Markets: Sources and Remedies
http://slidepdf.com/reader/full/steve-keen-instability-in-financial-markets-sources-and-remedies 15/23
DEG^ Ble`g{gebg- Kg{mde Der~ikdmd~t de @deiebg Oi{hg~r1 Rlw{bgr & [gogndgr R~gpg Hgge
j~~s1,,vvv%ngk~ng`mi~dle%blo,kmlfr Sifg 97 Is{dm 9;/9>- ;39;
I~ ~jg ~dog l` F{ggersie—r ~gr~dolet- ~jg {gim jlwrg s{dbg dengz vir ;>3- i og{g : sg{ bge~ kgmlv
~jg gpge~wim sgih ien imolr~ ;%7 ~dogr ~jg mlef ~g{o ipg{ifg%
@dfw{g 41 ̂ vl s{dbg mgpgmr *s{lsg{~t$
^jg s{lswmrdle ̀ l{ ~jdr kwkkmg vir bmgi{mt s{lpdngn kt ibbgmg{i~def ol{~fifg ngk~- ien ~jg {isdn
ngbgmg{i~dle l` ngk~ n{lpg d~ kibh nlve *rgg @dfw{g 93$% Slrd~dpg ̀ ggnkibh mllsr vl{h de kl~j
nd{gb~dler„ws ien nlve%
9:439433949394;3942394>394739403946394:39443;333;393 ;3;33
;7
73
67
933
9;7
973
967
;33
;;7
;73
;67
233
Dengz *;330,3>1 ;0;8 ;399,991 96>$
Ogie 9:43/9446 *4:$
[gim Jlwrg S{dbg Dengz
vvv%ngk~ng`mi~dle%blo,kmlfr8 Birg/Rjdmmg{ Dengz
D e n g z 9 : 4 3 ? 9 3 3
F{ggersie
8/2/2019 Steve Keen: Instability in Financial Markets: Sources and Remedies
http://slidepdf.com/reader/full/steve-keen-instability-in-financial-markets-sources-and-remedies 16/23
DEG^ Ble`g{gebg- Kg{mde Der~ikdmd~t de @deiebg Oi{hg~r1 Rlw{bgr & [gogndgr R~gpg Hgge
j~~s1,,vvv%ngk~ng`mi~dle%blo,kmlfr Sifg 90 Is{dm 9;/9>- ;39;
@dfw{g 931 Ol{~fifg Ibbgmg{i~dle & Bjiefg de [gim Jlwrg S{dbg Dengz
^jdr ”Oderhdie‟ sg{rsgb~dpg le ~jg {lmg l` ibbgmg{i~def ngk~ de n{dpdef irrg~ s{dbg kwkkmgr mginr ~l
rgpg{im lkpdlwr blebmwrdler1
9% ^jg b{drdr vdmm el~ kg lpg{ we~dm s{dpi~g ngk~ jir kgge {gnwbgn rwkr~ie~dimmt„~l ~jg l{ng{ l` 933' l` FNS l{ mgrr8
;% Irrg~ s{dbgr vdmm `imm vd~j ~jg {gnwb~dle l` ngk~% Gpge vd~j ~jg 22' ngbmdeg kt Elpgokg{
;399- ~jg {gim jlwrg s{dbg Dengz {goider 66' iklpg ~jg 9:43/9447 ipg{ifg *ien 73' iklpg
~jg oded/sgih l` 9443$- vjdmg rji{gr i{g r~dmm 06' iklpg ~jg mlef ~g{o ~{gen ̀ {lo 9497/
94478
2% Sleqd Mgendef dr ~jg hgt biwrg l` irrg~ s{dbg kwkkmgr8
>% Rdebg ngk~ bieel~ sg{oiege~mt ibbgmg{i~g- imm irrg~ kwkkmgr vdmm wm~doi~gmt kw{r~8 ien
7% ^l ipldn irrg~ s{dbg kwkkmgr de ~jg `d{r~ smibg- vg jipg ~l k{gih ~jg slrd~dpg `ggnkibh mlls
kg~vgge mgpg{ifg ien irrg~ s{dbgr%
[gogndgrD` vg i{g ~l {gimmt gen ~jg ngr~{wb~dpg der~ikdmd~t l` ~jg `deiebdim rtr~go- vg jipg ~l inn{grr ~jg
biwrg l` ~jdr der~ikdmd~t- ien ̀ {lo i Oderhdie sg{rsgb~dpg- ~ji~ biwrg dr ~jg slrd~dpg ̀ ggnkibh mlls
kg~vgge {drdef ngk~ ien irrg~ s{dbgr%
^jdr bieel~ kg nleg rdosmt kt {gmtdef wsle kiehr mgi{edef `{lo ~jg b{drdr ien kgjipdef ol{g
{grslerdkmt i`~g{ d~- rdebg ~jgt jipg ie deei~g ngrd{g ~l gz~gen ir owbj ngk~ ir ~jgt bie sg{rwing
~jg ele/kieh rgb~l{r ~l ~ihg le% ^jg {girle dr rdosmg1 kieh s{l`d~r i{g n{dpge s{doi{dmt kt ~jg
plmwog l` ngk~% ̂ jg{g dr el otr~g{t kgjden vjt ~jg s{l`d~r ien vifgr l` ~jg @D[G gblelot jipg
f{lve {gmi~dpg ~l ~jg {gr~ l` ~jg gblelot- el{ kgjden ~jg bldebdngebg ~ji~ egfi~dpg @D[G s{l`d~r
jipg lbbw{{gn lemt nw{def ~jg F{gi~ Ngs{grrdle ien lw{ bw{{ge~ b{drdr *rgg @dfw{g 99$%
94:0 94:: 9443 944; 944> 9440 944: ;333 ;33; ;33> ;330 ;33: ;393 ;39; ;39>6
0
7
>
2
;
9
3
9
;
2
>
7
0
6
;9
9:
97
9;
4
0
2
3
2
0
4
9;
97
9:
;9
Ol{~fifg Ibbgmg{i~l{
Bjiefg de [gim Jlwrg S{dbgr
Ol{~fifg Ibbgmg{i~dle & Jlwrg S{dbg Olpgoge~r *Bl{{?3%6:$
vvv%ngk~ng`mi~dle%blo,kmlfr
S g { b g e ~ l ` F N S
S g { b g e ~ b j
i e f g d e { g i m B i r g / R j d m m g { D e n g z
s % i %
3
8/2/2019 Steve Keen: Instability in Financial Markets: Sources and Remedies
http://slidepdf.com/reader/full/steve-keen-instability-in-financial-markets-sources-and-remedies 17/23
DEG^ Ble`g{gebg- Kg{mde Der~ikdmd~t de @deiebg Oi{hg~r1 Rlw{bgr & [gogndgr R~gpg Hgge
j~~s1,,vvv%ngk~ng`mi~dle%blo,kmlfr Sifg 96 Is{dm 9;/9>- ;39;
@dfw{g 991 ̂ jg @D[G Gblelot pr ~jg [gim Gblelot
Kw~ mgendef dr i ~vl/rdngn ib~dpd~t1 ~jg ele/kieh swkmdb jir ~l kg i vdmmdef si{~dbdsie~ d` ngk~ mgpgmr
i{g ~l {drg `ir~g{ ~jie deblog- ien wm~doi~gmt {gibj mgpgmr ~ji~ bie biwrg i `deiebdim b{drdr%
^jdr imvitr {gywd{gr ~jg s{lrsgb~ l` fide ̀ {lo mgpg{ifgn rsgbwmi~dle le irrg~ s{dbgr- rdebg ~jg
swkmdb„kl~j jlwrgjlmnr ien ̀ d{or„{i{gmt kl{{lv gzbgrrdpgmt le ~jg kirdr l` deblog imleg% Ik{gihnlve l` jlwrgjlmn ngk~ oihgr ~jdr slde~1 ir @dfw{g 9; dmmwr~{i~gr- ngrsd~g imm ~jg ge~dbgoge~r
~l sg{rleim ngk~- d~ bjiefgn pg{t md~~mg {gmi~dpg ~l deblog- vjg{gir ol{~fifg ngk~ jir {drge
n{ioi~dbimmt lpg{ ~dog%92
94;3 9423 94>3 9473 9403 9463 94:3 9443 ;333 ;393 ;3;393
7
3
7
93
97
;3
;7
23
27
>3
>7
73
;
9
3
9
;
2
>
7
0
6
:
4
93
S{l`d~r
Vifgr
S{l`d~r & Vifgr de ~jg @D[G Rgb~l{r
vvv%ngk~ng`mi~dle%blo,kmlfr
S g {
b g e ~ l ` ^ l ~ i m N l o g r ~ d b S { l ` d ~ r
S g { b g e ~ l ` ^ l ~ i m V i f g r
3
8/2/2019 Steve Keen: Instability in Financial Markets: Sources and Remedies
http://slidepdf.com/reader/full/steve-keen-instability-in-financial-markets-sources-and-remedies 18/23
DEG^ Ble`g{gebg- Kg{mde Der~ikdmd~t de @deiebg Oi{hg~r1 Rlw{bgr & [gogndgr R~gpg Hgge
j~~s1,,vvv%ngk~ng`mi~dle%blo,kmlfr Sifg 9: Is{dm 9;/9>- ;39;
@dfw{g 9;1 Lemt Ol{~fifg Ngk~ jir {drge rwkr~ie~dimmt
^l s{gpge~ kwkkmgr- vg ~jg{g`l{g jipg ~l {gnwbg ~jg issgim l` mgpg{ifgn rsgbwmi~dle le irrg~
s{dbgr- vd~jlw~ i~ ~jg riog ~dog bjlhdef l`` ngoien ̀ l{ ngk~ ̀ l{ gd~jg{ mgfd~doi~g depgr~oge~ l{
weipldnikmg kl{{lvdef% D s{lslrg ~vl ogbjiedror1 ”Awkdmgg Rji{gr‟ ien ”S{lsg{~t Deblog Mdod~gn
Mgpg{ifg‟ *”^jg SDMM‟$1
9% Awkdmgg Rji{gr1 ̂ l {gng`deg rji{gr rl ~ji~- d` sw{bjirgn ̀ {lo i blosiet nd{gb~mt- ~jgt mir~
`l{gpg{- kw~ i`~g{ i odedoim ewokg{ l` rimgr *rit rgpge$- ~jgt kgblog Awkdmgg Rji{gr ~ji~
mir~ iel~jg{ 73 tgi{r kg`l{g ~jgt gzsd{g8 ien
;% S{lsg{~t Deblog Mdod~gn Mgpg{ifg1 ̂ l mdod~ ~jg ngk~ ~ji~ bie kg rgbw{gn ifider~ i s{lsg{~t
~l ~ge ~dogr ~jg ieewim {ge~im l` ~ji~ s{lsg{~t%
Awkdmgg Rji{grBw{{ge~mt- 44' l` imm ~{indef le ~jg r~lbh oi{hg~ deplmpgr rsgbwmi~l{r rgmmdef s{g/gzdr~def rji{gr ~l
l~jg{ rsgbwmi~l{r% ̂ jdr dr weng{~ihge vd~j kl{{lvgn olegt de ~jg jlsg l` gzsmld~def s{dbg kwkkmgr
mdhg ~ji~ rg~ kt Tijll) de ~jg Nl~Blo Kwkkmg *rgg @dfw{g 92$- vjge ~ji~ ~jg mgendef d~rgm` mi{fgmt
biwrgr ~jg s{dbg kwkkmgr%
D` der~gin rji{gr le ~jg rgbleni{t oi{hg~ mir~gn lemt 73 tgi{r- ~jge gpge ~jg F{gi~g{ @llm blwmne—~
kg ge~dbgn ~l kwt ~jgo vd~j kl{{lvgn olegt ‒rdebg ~jgd{ ~g{odeim pimwg vlwmn kg qg{l% Der~gin i
kwtg{ vlwmn lemt sw{bjirg i rji{g le ~jg rgbleni{t oi{hg~ de l{ng{ ~l rgbw{g i ̀ mlv l` ndpdngenr
`l{ 73 tgi{r *l{ mgrr$% Leg l` ~jg ~vl f{gi~ rlw{bgr l` {drdef wes{lnwb~dpg ngk~ vlwmn kg gmdodei~gn%
^jg lkagb~dpg l` ~jdr s{lslrim dr ~l oihg mgpg{ifgn rsgbwmi~dle le gzdr~def rji{gr wei~~{ib~dpg- vjdmg
r~dmm oihdef ̀ wendef DSLr ien rji{g drrwgr i~~{ib~dpg- ien geikmdef fgewdeg s{dbg ndrblpg{t%
94739477940394079463946794:394:794439447;333;337;393 ;3973
93
;3
23
>3
73
03
63
:3
43
Ele/ol{~fifg Ngk~
Ol{~fifg Ngk~
Jlwrgjlmn Ngk~ kt ^tsg
vvv%ngk~ng`mi~dle%blo,kmlfr
S g { b g e ~ l ` F N S
8/2/2019 Steve Keen: Instability in Financial Markets: Sources and Remedies
http://slidepdf.com/reader/full/steve-keen-instability-in-financial-markets-sources-and-remedies 19/23
DEG^ Ble`g{gebg- Kg{mde Der~ikdmd~t de @deiebg Oi{hg~r1 Rlw{bgr & [gogndgr R~gpg Hgge
j~~s1,,vvv%ngk~ng`mi~dle%blo,kmlfr Sifg 94 Is{dm 9;/9>- ;39;
@dfw{g 921 Tijllr rji{g s{dbg kwkkmgr ien kw{r~r
S{lsg{~t Deblog Mdod~gn Mgpg{ifgRlog ngk~ dr eggngn ~l sw{bjirg i jlwrg- rdebg ~jg blr~ l` kwdmndef i egv jlwrg ̀ i{ gzbggnr ~jg
ipg{ifg vifg% Kw~ ngk~ f{gi~g{ ~jie sg{jisr 2 ~dogr ipg{ifg ieewim vifgr n{dpgr el~ jlwrg
bler~{wb~dle- kw~ jlwrg s{dbg kwkkmgr%
S{lsg{~t Deblog Mdod~gn Mgpg{ifg *”~jg SDMM‟$ vlwmn k{gih ~jdr slrd~dpg `ggnkibh mlls kt kirdef ~jg
oizdowo ~ji~ bie kg mge~ ̀ l{ i s{lsg{~t sw{bjirg- el~ le ~jg deblog l` ~jg kl{{lvg{- kw~ le i
owm~dsmg l` ~jg deblog/gi{edef sl~ge~dim l` ~jg s{lsg{~t d~rgm`%
Vd~j ~jdr {g`l{o- imm vlwmn/kg sw{bjirg{r vlwmn kg le gywim `ll~def vd~j {grsgb~ ~l ~jgd{ mgpgm l`
ngk~/`deiebgn rsgendef- ien ~jg lemt vit ~l ~{wos iel~jg{ kwtg{ vlwmn kg ~l sw~ ol{g ele/ngk~/
`deiebgn olegt de~l sw{bjirdef i s{lsg{~t%
D~ vlwmn r~dmm kg slrrdkmg ‒denggn egbgrri{t ‒~l sit ol{g ~jie ~ge ~dogr i s{lsg{~t—r ieewim {ge~im ~l
sw{bjirg d~% Kw~ ~jge ~jg gzbgrr l` ~jg s{dbg lpg{ ~jg mlie vlwmn kg fgewdegmt ~jg ripdefr l` ~jg
kwtg{- ien ie deb{girg de ~jg s{dbg l` i jlwrg vlwmn ogie i `imm de mgpg{ifg- {i~jg{ ~jie ie deb{girgde mgpg{ifg ir elv% ̂ jg{g vlwmn kg i egfi~dpg ̀ ggnkibh mlls kg~vgge jlwrg s{dbgr ien mgpg{ifg%
^ji~ jlsg`wmmt vlwmn r~ls jlwrg s{dbg kwkkmgr ngpgmlsdef de ~jg ̀ d{r~ smibg- ien ~ihg nvgmmdefr lw~
l` ~jg {gimo l` rsgbwmi~dle kibh de~l ~jg {gimo l` jlwrdef- vjg{g ~jgt kgmlef%
BlebmwrdleD jlsg ~ji~ ot Oderht/dersd{gn ieimtrdr l` ~jg rlw{bg l` ̀ deiebdim oi{hg~ der~ikdmd~t dr blosgmmdef8 D
gzsgb~ ~ji~ ot {g`l{o s{lslrimr i{g mgrr rl% Kw~ ~jgt i{g el~ rl owbj {indbim ir kl{e ̀ {lo i {gimdr~db
irrgrroge~- el~ lemt l` ~jg biwrg l` ̀ deiebdim der~ikdmd~t- kw~ ~jg jdr~l{dbim {gbl{n l` lw{ sir~
i~~gos~r ~l ~iog d~%
9440 944: ;333 ;33; ;33> ;330 ;33: ;393 ;39;3
73
933
973
;33
;73
233
273
>33
>73
Tijll Rji{g S{dbg
vvv%ngk~ng`mi~dle%blo,kmlfr
W R . s g { r j i { g
8/2/2019 Steve Keen: Instability in Financial Markets: Sources and Remedies
http://slidepdf.com/reader/full/steve-keen-instability-in-financial-markets-sources-and-remedies 20/23
DEG^ Ble`g{gebg- Kg{mde Der~ikdmd~t de @deiebg Oi{hg~r1 Rlw{bgr & [gogndgr R~gpg Hgge
j~~s1,,vvv%ngk~ng`mi~dle%blo,kmlfr Sifg ;3 Is{dm 9;/9>- ;39;
Vg bieel~ {gmt wsle mivr l{ {gfwmi~l{r ~l sg{oiege~mt s{gpge~ ~jg ̀ lmmdgr l` ̀ deiebg% I`~g{ gpg{t
f{gi~ gblelodb b{drdr blog f{gi~ egv der~d~w~dler mdhg ~jg @gng{im [grg{pg- ien egv {gfwmi~dler mdhg
~jlrg goklndgn de ~jg Fmirr/R~gifimm Ib~% ̂ jge ~jg{g blogr f{gi~ r~ikdmd~t- nwg mi{fgmt ~l ~jg ngbmdeg
de ngk~- kw~ imrl nwg ~l ~jgrg egv der~d~w~dler ien {gfwmi~dler8 ien `{lo ~ji~ r~ikdmd~t i{drgr i egv
jwk{dr ~ji~ ”~jdr ~dog dr nd``g{ge~‟„ir ~jg ngk~ ~ji~ biwrgr b{drgr {drgr lebg ol{g% [gfwmi~l{t
der~d~w~dler kgblog bis~w{gn kt ~jg ̀ deiebdim rtr~go ~jgt i{g rwsslrgn ~l {gfwmi~g- vjdmg mivr i{giklmdrjgn kgbiwrg ~jgt i{g rgge ~l {gs{grge~ i ktfleg ifg% ^jge i egv b{drdr g{ws~r- ien ~jg
s{lbgrr {gsgi~r% Oderht—r isjl{dro ~ji~ ”r~ikdmd~t dr ngr~ikdmdqdef‟ issmdgr el~ awr~ ~l bl{sl{i~g
kgjipdlw{- kw~ ~l mgfdrmi~l{r ien {gfwmi~l{r ir vgmm%
Awkdmgg Rji{gr ien ~jg SDMM i{g ie i~~gos~ ~l v{d~g {gr~{ide~r le Sleqd @deiebg de~l ~jg ̀ ik{db l` lw{
rlbdg~t- rl ~ji~ kwkkmgr nl el~ `l{o de ~jg ̀ d{r~ der~iebg- rl ~ji~ ~jg slrd~dpg ̀ ggnkibh mlls ~ji~
~w{er {drdef irrg~ s{dbgr de~l ibbgmg{i~def ngk~ nlgr el~ jissge- ien rl ~ji~ iel~jg{ ̀ deiebdim b{drdr
mdhg ~jg leg vg i{g elv de egpg{ lbbw{r ifide%
Issgendz1 Nlwkmg/ge~{t pg{rdler l` ~ikmgr
^ikmg 21 Nlwkmg/ge~{t pg{rdle l` Eglbmirrdbim pdrdle l` mgendef
Kieh Irrg~r Ngslrd~r *Mdikdmd~dgr$
Ib~dle,Ib~l{ Si~dge~ Dosi~dge~
Irrg~r Mdikdmd~dgr Irrg~r Mdikdmd~dgr
Oihg Mlie (Mgen /Mgen
[gbl{n Mlie /Mgen (Mgen
Ien
^ikmg >1 Nlwkmg/ge~{t pg{rdle l` ib~wim mgendef
Kieh Irrg~r Ngslrd~r *Kieh Mdikdmd~dgr$
Ib~dle,Ib~l{ Mgendef
Mdbgebg
Mlie Mgnfg{ Si~dge~ Dosi~dge~
Irrg~r Mdikdmd~dgr
Oihg Mlie (Mgen /Mgen
[gbl{n Mlie /Mgen (Mgen
Kg{eiehg- K% R% *;333$% Grritr le ~jg F{gi~ Ngs{grrdle% S{debg~le- S{debg~le Wedpg{rd~t S{grr%
Kdffr- O% ien ^% Oitg{ *;393$% +^jg Lw~sw~ Fis Blewen{wo%+ De~g{gblelodbr,[gpdgv l` Gw{lsgie
Gblelodb Slmdbt >7*9$1 99/90%Kdffr- O%- ̂ % Oitg{- g~ im% *;393$% +B{gnd~ ien Gblelodb [gblpg{t1 Ngotr~d`tdef Sjlgedz Od{ibmgr%+
RR[E gMdk{i{t%
Kmdeng{- I% R% *944:$% Irhdef iklw~ s{dbgr1 i egv iss{libj ~l weng{r~iendef s{dbg r~dbhdegrr% Egv
Tl{h- [wrrgmm Rifg @lweni~dle%
Bi{sge~g{- R% K% ien R% Ngod{ims *;393$% Olegt- [grg{pgr- ien ~jg ̂ {ierodrrdle l` Oleg~i{t Slmdbt1
Nlgr ~jg Olegt Owm~dsmdg{ Gzdr~< @deiebg ien Gblelodbr Ndrbwrrdle Rg{dgr% Virjdef~le-
@gng{im [grg{pg Kli{n%
@ioi- G% @% *9463$% +G``dbdge~ Bisd~im Oi{hg~r1 I [gpdgv l` ̂ jgl{t ien Gosd{dbim Vl{h%+ ^jg Alw{eim
l` @deiebg ;7*;$1 2:2/>96%
@ioi- G% @% ien H% [% @{gebj *9444$% +^jg Bl{sl{i~g Blr~ l` Bisd~im ien ~jg [g~w{e le Bl{sl{i~g
Depgr~oge~%+ Alw{eim l` @deiebg 7>*0$1 9424/9406%
8/2/2019 Steve Keen: Instability in Financial Markets: Sources and Remedies
http://slidepdf.com/reader/full/steve-keen-instability-in-financial-markets-sources-and-remedies 21/23
DEG^ Ble`g{gebg- Kg{mde Der~ikdmd~t de @deiebg Oi{hg~r1 Rlw{bgr & [gogndgr R~gpg Hgge
j~~s1,,vvv%ngk~ng`mi~dle%blo,kmlfr Sifg ;9 Is{dm 9;/9>- ;39;
@ioi- G% @% ien H% [% @{gebj *;33>$% +^jg Bisd~im Irrg~ S{dbdef Olngm1 ̂ jgl{t ien Gpdngebg%+ ̂ jg
Alw{eim l` Gblelodb Sg{rsgb~dpgr 9:*2$1 ;7/>0%
@drjg{- D% *9422$% +^jg Ngk~/Ng`mi~dle ̂ jgl{t l` F{gi~ Ngs{grrdler%+ Gblelog~{dbi 9*>$1 226/276%
F{ggersie- I% *;337$% ̂ gr~dolet l` Bjid{oie Imie F{ggersie1 ̂ jg gblelodb lw~mllh% Virjdef~le-
Alde~ Gblelodb Blood~~gg- W%R% Blef{grr%
Jlmogr- I% [% *9404$% Lsg{i~dleim Bler~{ide~r le ~jg R~ikdmdqi~dle l` Olegt Rwssmt F{lv~j%Ble~{lmmdef Oleg~i{t Iff{gfi~gr% @% G% Ol{{dr% Eie~wbhg~ Drmien- ̂ jg @gng{im [grg{pg Kieh
l` Klr~le1 07/66%
Hijegoie- N% *;332$% +Oisr l` Klwengn [i~dleimd~t1 Srtbjlmlft ̀ l{ Kgjipdl{im Gblelodbr%+ ̂ jg
Iog{dbie Gblelodb [gpdgv 42*7$1 9>>4/9>67%
Hijegoie- N% ien I% ̂ pg{rht *9464$% +S{lrsgb~ ̂ jgl{t1 Ie Ieimtrdr l` Ngbdrdle weng{ [drh%+
Gblelog~{dbi >6*;$1 ;02/;49%
Hgge- R% *9447$% +@deiebg ien Gblelodb K{gihnlve1 Olngmdef Oderhtr @deiebdim Der~ikdmd~t
Jtsl~jgrdr%%+ Alw{eim l` Slr~ Hgtegrdie Gblelodbr 96*>$1 036/027%
Hgge- R% *9446$% +@{lo R~lbjir~dbr ~l Blosmgzd~t de Olngmr l` Gblelodb Der~ikdmd~t%+ Elemdegi{
Nteiodbr- Srtbjlmlft- ien Md`g Rbdgebgr 9*;$1 979/96;%
Hgge- R% *;333$% ^jg Elemdegi{ Gblelodbr l` Ngk~ Ng`mi~dle% Bloog{bg- blosmgzd~t- ien gplmw~dle1^lsdbr de gblelodbr- ̀ deiebg- oi{hg~def- ien oieifgoge~1 S{lbggndefr l` ~jg ̂ vgm`~j
De~g{ei~dleim Rtoslrdwo de Gblelodb ̂ jgl{t ien Gblelog~{dbr% V% I% Ki{eg~~- B% Bjdi{gmmi-
R% Hgge- [% Oi{hr ien J% Rbjeikm% Egv Tl{h- Biok{dnfg Wedpg{rd~t S{grr1 :2/993%
Hgge- R% *;399$% +I oleg~i{t Oderht olngm l` ~jg F{gi~ Olng{i~dle ien ~jg F{gi~ [gbgrrdle%+
Alw{eim l` Gblelodb Kgjipdl{ & L{fiedqi~dle De S{grr- Bl{{gb~gn S{ll` %
H{wfoie- S% *;399$% +Ngk~ Dr *Olr~mt$ Olegt Vg Lvg ~l Lw{rgmpgr%+ ̂ jg Blerbdgebg l` i Mdkg{im
j~~s1,,h{wfoie%kmlfr%et~dogr%blo,;399,9;,;:,ngk~/dr/olr~mt/olegt/vg/lvg/~l/
lw{rgmpgr, ;39;%
H{wfoie- S% ien F% K% Gffg{~rrle *;393$% Ngk~- Ngmgpg{ifdef- ien ~jg Mdywdnd~t ̂ {is1 I @drjg{/
Oderht/Hll iss{libj X;en n{i`~ ;,9>,;399_% Egv Tl{h- @gng{im [grg{pg Kieh l` Egv Tl{h &
S{debg~le Wedpg{rd~t%Mgg- @% R% *944:$% Slr~ Hgtegrdie s{dbg ~jgl{t% Biok{dnfg- Biok{dnfg Wedpg{rd~t S{grr%
Oderht- J% S% *94:;$% Bie +d~+ jissge ifide< 1 grritr le der~ikdmd~t ien `deiebg% I{oleh- E%T%- O%G%
Rji{sg%
Oderht- J% S%- G% A% Egmm- g~ im% *9449$% ̂ jg Genlfgegd~t l` Olegt% Edbjlmir Himnl{ ien oider~{gio
gblelodbr1 Ble`{le~i~dle l{ blepg{fgebg< Egv Tl{h- R~% Oi{~der S{grr1 ;36/;;3%
Oll{g- K% A% *9464$% +^jg Genlfgelwr Olegt R~lbh%+ Alw{eim l` Slr~ Hgtegrdie Gblelodbr ;*9$1 >4/
63%
[gtelmnr- S% A% *94:6$% Slmd~dbim Gblelot1 I rte~jgrdr l` Himgbhdie ien Slr~/Hgtegrdie Gblelodbr%
Rwrrgz- Vjgi~rjgi`%
[lfl``- H% *;399$ +^jg Rgblen F{gi~ Ble~{ib~dle%+ S{lagb~ Rtendbi~g%
Rbjwosg~g{- A% *94;:$% +^jg Der~ikdmd~t l` Bisd~imdro%+ ̂ jg Gblelodb Alw{eim 2:*979$1 209/2:0%Rbjwosg~g{- A% I% *942>$% ̂ jg ~jgl{t l` gblelodb ngpgmlsoge~ 1 ie deywd{t de~l s{l`d~r- bisd~im-
b{gnd~- de~g{gr~ ien ~jg kwrdegrr btbmg% Biok{dnfg- Oirribjwrg~~r- Ji{pi{n Wedpg{rd~t S{grr%
Rbjvi{~q- [%- I% Vlm`- g~ im% *;393$% +^jg Nteiodb S{lbgrr l` S{dbg Ndrblpg{t de ie Gywd~t Oi{hg~%+
Oieifg{dim @deiebg 20*6$1 77>/707%
Rjdmmg{- [% A% *;333$% D{{i~dleim gzwkg{iebg% S{debg~le- E%A%- S{debg~le Wedpg{rd~t S{grr%
9 ”^jg ikr~{ib~ olngm l` ~jg eglbmirrdbim rte~jgrdr bieel~ fgeg{i~g der~ikdmd~t% Vjge ~jg eglbmirrdbim rte~jgrdr
dr bler~{wb~gn- bisd~im irrg~r- `deiebdef i{{iefgoge~r ~ji~ bge~g{ i{lwen kiehr ien olegt b{gi~dle-
8/2/2019 Steve Keen: Instability in Financial Markets: Sources and Remedies
http://slidepdf.com/reader/full/steve-keen-instability-in-financial-markets-sources-and-remedies 22/23
DEG^ Ble`g{gebg- Kg{mde Der~ikdmd~t de @deiebg Oi{hg~r1 Rlw{bgr & [gogndgr R~gpg Hgge
j~~s1,,vvv%ngk~ng`mi~dle%blo,kmlfr Sifg ;; Is{dm 9;/9>- ;39;
bler~{ide~r doslrgn kt mdikdmd~dgr- ien ~jg s{lkmgor irrlbdi~gn vd~j helvmgnfg iklw~ webg{~ide `w~w{gr i{g imm
irrwogn ivit% @l{ gblelodr~r ien slmdbt/oihg{r ~l nl kg~~g{ vg jipg ~l ikienle ~jg eglbmirrdbim
rte~jgrdr%‟ ; ^jg `wmm rge~gebg dr ”R~ikdmd~t„l{ ~{ieywdmmd~t„de i vl{mn vd~j i btbmdbim sir~ ien bisd~imdr~ `deiebdim
der~d~w~dler„dr ngr~ikdmdqdef%‟ 2
Jlmogr- vjl vir ~jge Rgedl{ Pdbg/S{grdnge~ l` ~jg Egv Tl{h @gng{im [grg{pg- i{fwgn ~ji~ ~jg kgmdg` ”~ji~
~jg kiehdef rtr~go lemt gzsienr mlier i`~g{ ~jg X@gng{im [grg{pg_ Rtr~go *l{ oi{hg~ `ib~l{r$ jipg sw~
{grg{pgr de ~jg kiehdef rtr~go‟ vir kirgn le ”i eidpg irrwos~dle‟% Der~gin- jg i{fwgn- ‚De ~jg {gim vl{mn-
kiehr gz~gen b{gnd~- b{gi~def ngslrd~r de ~jg s{lbgrr- ien mllh `l{ ~jg {grg{pgr mi~g{% ^jg ywgr~dle ~jge
kgblogr leg l` vjg~jg{ ien jlv ~jg @gng{im [grg{pg vdmm ibbloolni~g ~jg ngoien `l{ {grg{pgr% De ~jg pg{t
rjl{~ {we- ~jg @gng{im [grg{pg jir md~~mg l{ el bjldbg iklw~ ibbloolni~def ~ji~ ngoien8 lpg{ ~dog- d~r
de`mwgebg bie lkpdlwrmt kg `gm~%— *Jlmogr 9404- s% 62$ >
De i n{i`~ pg{rdle- ~jgt r~i~gn ~jdr gpge ol{g bmgi{mt1 ”Ngk~ rggor ~l kg ~jg {grdnwim pi{dikmg
de `deiebdef ngbdrdler% Depgr~oge~ deb{girgr ngk~- ien jdfjg{ gi{edefr ~gen ~l {gnwbg ngk~%‟ 7
H{wfoie jir jlvgpg{ awr~ swkmdrjgn slr~r vjdbj dosmt ~ji~ jg dr elv blerdng{def ~jg {lmg l` ~jg mgpgm ien
bjiefg de s{dpi~g ngk~1 rgg j~~s1,,h{wfoie%kmlfr%et~dogr%blo,;39;,39,23,gw{lqleg/s{lkmgor, ien
j~~s1,,h{wfoie%kmlfr%et~dogr%blo,;39;,39,;;,el~gr/le/ngmgpg{ifdef,% 0^l oihg ~jgo girdg{ ~l blos{gjgen D jipg lod~~gn ~jg nlwkmg/ge~{dgr wrgn kt ibblwe~ie~r ~l gerw{g
ibbw{i~g ibblwe~def% Nlwkmg/ge~{t pg{rdler l` kl~j ~ikmgr i{g rwssmdgn de ~jg Issgendz le sifg ;3% 6
^jdr bie imrl kg i bjgywg n{ive ifider~ ~jg mgendef kieh ~ji~ bie kg ngslrd~gn gmrgvjg{g de ~jg kiehdef
rtr~go%:
^jg eglbmirrdbim pdrdle blwmn kg {gr~l{gn ir ie ibbgs~ikmg rdosmd`dbi~dle l` {gimd~t d` ~jg ~gz~kllh olegt
owm~dsmdg{ olngm„de vjdbj ”ngslrd~r b{gi~g mlier‟„issmdgn de {gimd~t% Kw~ ir Jlmogr *~jge Rgedl{ Pdbg/
S{grdnge~ l` ~jg Egv Tl{h @gn$ i{fwgn mlef ifl- ~jg pdgv ”~ji~ ~jg kiehdef rtr~go lemt gzsienr mlier i`~g{
~jg X@gng{im [grg{pg_ Rtr~go *l{ oi{hg~ `ib~l{r$ jipg sw~ {grg{pgr de ~jg kiehdef rtr~go‟ vir kirgn le ”i
eidpg irrwos~dle‟% Der~gin- jg i{fwgn- ”De ~jg {gim vl{mn- kiehr gz~gen b{gnd~- b{gi~def ngslrd~r de ~jg
s{lbgrr- ien mllh `l{ ~jg {grg{pgr mi~g{% ^jg ywgr~dle ~jge kgblogr leg l` vjg~jg{ ien jlv ~jg @gng{im
[grg{pg vdmm ibbloolni~g ~jg ngoien `l{ {grg{pgr% De ~jg pg{t rjl{~ {we- ~jg @gng{im [grg{pg jir md~~mg l{ el
bjldbg iklw~ ibbloolni~def ~ji~ ngoien8 lpg{ ~dog- d~r de`mwgebg bie lkpdlwrmt kg `gm~† !kw~( De iet fdpger~i~goge~ vggh- ~jg {grg{pgr {gywd{gn ~l kg oide~idegn kt ~jg kiehdef rtr~go i{g s{gng~g{odegn kt ~jg
mgpgm l` ngslrd~r gzdr~def ~vl vgghr gi{mdg{‟ *Jlmogr 9404- s% 62$% Jlmogr vir i{fwdef ifider~ ~jg Oleg~i{dr~
slmdbt l` i~~gos~def ~l ble~{lm ~jg gblelot kt ble~{lmmdef ~jg r~lbh l` olegt vd~j {gfwmi{ deagb~dler l`
{grg{pgr- kg`l{g ~jdr slmdbt vir inls~gn„ien `idmgn„de ~jg gi{mt 9463r%
Jlmogr—r inpdbg vir mi{fgmt dfel{gn kt slmdbtoihg{r ien eglbmirrdbim ibingodb gblelodr~r- kw~ ~ihge
rg{dlwrmt kt Slr~ Hgtegrdier- debmwndef Oderht% Kgmi~gnmt- jdr slde~ dr kgdef blebgngn kt @gng{im [grg{pg
gblelodr~r1 ~jg olegt owm~dsmdg{ dr i ot~j *Bi{sge~g{ ien Ngod{ims ;393$%4
^jdr lod~r ~jg `ggnkibh g``gb~r kg~vgge bjiefdef ngk~ ien ~jg mgpgm l` lw~sw~- vjdbj i{g ie lkpdlwr
ngnwb~dle `{lo Rbjwosg~g{—r ien Oderht—r ieimtrdr kw~ vlwmn eggn i `wmm elemdegi{ nteiodb olngm ~l kg
s{lsg{mt rsgbd`dgn%93
Rgg j~~s1,,vvv%et%`{k%l{f,{grgi{bj,fmlkim\gblelot,B{drdr\^dogmdeg%sn` % 99
Slr~/Hgtegrdier i{fwg ~ji~ oi{fdeim blr~ dr bler~ie~ l{ `immdef `l{ olr~ `d{or ib{lrr ~jgd{ pdikmg {iefg l` lw~sw~- ien ~jdr ble~ge~dle dr r~{lefmt rwssl{~gn kt ~jg ni~i8 ~jdr dr l` blw{rg deblosi~dkmg vd~j oi{fdeim blr~
s{dbdef- ir Imie Kmdeng{ lkrg{pgn1 ”^jg lpg{vjgmodefmt kin egvr jg{g *`l{ gblelodb ~jgl{t$ dr ~ji~-
issi{ge~mt- lemt 99 sg{bge~ l` FNS dr s{lnwbgn weng{ blend~dler l` {drdef oi{fdeim blr~†
@d{or {gsl{~ jipdef pg{t jdfj `dzgn blr~r„{lwfjmt >3 sg{bge~ l` ~l~im blr~r le ipg{ifg% Ien oiet ol{g
blosiedgr r~i~g ~ji~ ~jgt jipg `immdef- {i~jg{ ~jie {drdef- oi{fdeim blr~ bw{pgr% Vjdmg ~jg{g i{g {girler ~l
vleng{ vjg~jg{ {grslenge~r de~g{s{g~gn ~jgrg ywgr~dler iklw~ blr~r bl{{gb~mt- ~jgd{ iervg{r side~ ie doifg
l` ~jg blr~ r~{wb~w{g l` ~jg ~tsdbim `d{o ~ji~ dr pg{t nd``g{ge~ `{lo ~jg leg dool{~imdqgn de ~gz~kllhr%‟ *937$
*Kmdeng{ 944:- ss% 93;- 937$% Rgg imrl [gtelmnr *94:6- ss% 72/0;$%9;
Ng`dedef FNS ir ~jg s{dbg mgpgm ~dogr {gim lw~sw~- ~jg S{lnwb~ [wmg gzsierdle l` ~jg {dfj~ jien rdng l` *9%2$
{grwm~r de 7 ~g{or- lemt leg l` vjdbj dr `l{ ~jg {i~g l` bjiefg l` irrg~ s{dbgr I I I
n Y ^ S
n~
%
8/2/2019 Steve Keen: Instability in Financial Markets: Sources and Remedies
http://slidepdf.com/reader/full/steve-keen-instability-in-financial-markets-sources-and-remedies 23/23
DEG^ Ble`g{gebg- Kg{mde Der~ikdmd~t de @deiebg Oi{hg~r1 Rlw{bgr & [gogndgr R~gpg Hgge
92 I rdodmi{ k{gihnlve l` kwrdegrr ngk~ bie—~ kg girdmt ng{dpgn `{lo ~jg ni~i- kw~ d~ vlwmn s{lkikmt rjlv i
rdodmi{ sjgelogele1 kl{{lvdef `l{ depgr~oge~ ien vl{hdef bisd~im vlwmn kg {gmi~dpgmt r~ikmg blosi{gn ~l
kl{{lvdef `l{ og{fg{r ien ibywdrd~dler%