Dedicated to the reform of economics

Economics is Broken

Economics failed to predict the biggest economic event in generations, failed to repair the damage, and fails to provide relief to real businesses and real people in the aftermath.

Three Basics:

Debt matters: Stagnation and decline will continue until we deal with the debt.

Money matters: Credit creates money, not the Fed. Continued unmanaged money creation by banks will continue crises and instability.

The economy is dynamic. Like an ecosystem, it is subject to collapse. Equilibrium, an automatic return to normal, is an assumption of economic theory not supported by logic or evidence.

Prosperity, real growth and full employment are not myths or suddenly unattainable in the "new normal." 

They are necessary conditions hidden behind a regime of bad policy and bad practices.

IDEA is dedicated to an economics that works for investors, business leaders, policy makers and, most importantly, everyday people who have been denied proper insight into the forces shaping their real lives. Our approach builds on a long tradition of classical, Keynesian and Post-Keynesian thought. We will develop, support and promote the economics that makes sense, partnering with others to establish a definitive and functional alternative to the orthodoxy that has failed.

 

Steve Keen's presentation to 1st Annual ISIPE Conference. (click image)

Steve Keen's presentation to 1st Annual ISIPE Conference. (click image)

MINSKY Dynamic Economic Modeling Software,  A revolutionary free open-source computer program for building and simulating dynamic, monetary economic models. A vital tool for a new approach to economics, optimized for accounting-based, flow-of-funds analysis. 

The book: Finance and Economic Breakdown. A comprehensive, foundational book that develops an explicitly monetary, dynamic approach to the analysis of capitalism and its periodic financial crises.

TSL/IDEA Data Store. A data tool for serious economists and students, offering functionality not elsewhere available. Developed and hosted in-house (see TSL/Data Store).

IDEA Effective Unemployment RatesA Simple, robust methodology converts the headline US unemployment rate and the "All-In" U-6 rate to a single, descriptive number that accounts for the drop in the participation rate. This IDEA effective unemployment rate more closely corresponds to the pre-crisis unemployment rates.



Steve Keen  is chief economist for IDEA and guides the substantive activities of the organization, currently head of Economics, History and Politics at Kingston University London.

Steve Keen  is chief economist for IDEA and guides the substantive activities of the organization, currently head of Economics, History and Politics at Kingston University London.

“The fundamental cause of the economic and financial crisis that began in late 2007 was lending by the finance sector that primarily financed speculation rather than investment. The private debt bubble this caused is unprecedented, probably in human history and certainly in the last century. Its unwinding now is the primary cause of the sustained slump in economic growth."

Steve Keen


James K. Galbraith's new book, click on the image for connection to his page and on to Simon & Shuster.

James K. Galbraith's new book, click on the image for connection to his page and on to Simon & Shuster.