Review: Can we avoid another financial crisis? (Steve Keen)
Private debt to GDP ratio as the doom metric
Last December I ran an experiment where I paywalled all articles, I’ve decided on paywalling every 3rd article so the results can be compared. This is the 3rd article, so it’s walled.
Last year, I remembered that I think most books are too long. Perhaps one sensible response to this is to favor reading shorter books in general. So I sorted my Goodreads to-read list after length, and started picking books from the shortest. One of those that came up was a heterodox economics book by Steve Keen called Can We Avoid Another Financial Crisis? (AA). It’s from 2017 which can be seen as a benefit since it gives some time for any predictions to have been perhaps confirmed or disconfirmed.
The main thesis of the book is that private debt to GDP ratio is causal for economic crises. He has some plots like this:
