Back in April 2010, I joined with and supported Professor Steve Keen on his week-long Keenwalk to Kosciuszko. For readers who don’t know, Steve is one of just 13 economists worldwide who foresaw and forewarned of the GFC. Indeed, Steve won the 2010 Revere Award as voted by his peers, for being the economist who first warned of the impending crisis and (more importantly) the one who most cogently explained the reasons why.
For some time now, Steve has been working to develop a new computer program for modelling economics. It is called “Minsky”, in honour of the economist Hyman Minsky. Yes, that’s him, in the cartoon above. He developed the Financial Instability Hypothesis, which essentially recognised that lengthy periods of economic stability are actually a cause of subsequent instability and crisis. It was Minsky who famously coined the phrase “Stability is destabilising”.
Steve’s “Minsky” computer program is revolutionary.
Well – believe it or not – it is the first economic modelling program that actually includes the role of banks, money, and debt.
Mainstream economists – including all those overpaid “experts” in the world’s treasury departments and central banks – failed to see the crisis coming.
But you already know that. What you may not know is the reason why. And that reason is simply this.
The mainstream economic theories (thus, models) they all believe in … ignore the role of banks, money, and debt.
You really can’t make this $h!t up.
Steve wants to change all that. He wants to give the world the tools needed to properly model the real world economy. Not an imaginary one. Because in the real world, banks money and debt all matter. A lot.
To make this happen – to revolutionise economics – well, sad to say, it requires money. Money to hire not just one or two part-timers, but a team of full-time computer programmers.
So, to raise money for this project, Steve has launched a campaign on the well known fundraising website called Kickstarter.
Please visit the campaign page here –
I want to encourage you to take 2 minutes to watch Steve’s introductory video. If nothing else, it will entertain and educate you. And if you really want to be educated – in (mostly) no nonsense, layman’s language – take the time to read what Steve has to say on his Kickstarter campaign page.
Then, if you feel that this is a worthy project … I certainly do! … then please, make a pledge.
As little as $2. Because every dollar helps.
And please share the links to Steve’s Kickstarter campaign on your own blog, Facebook page, Twitter, and other social networks.
Your simply spreading the word will be a great help, and a wonderful support.
The Economist recently had a feature on “Economics after the Crisis” called “New Model Army” which featured Minsky as an example of what the future of economics could be:
In Australia Steve Keen, an economist, and Russell Standish, a computational scientist, are developing a software package that would allow anyone to create and play with models of the economy that incorporate some of these new ideas. Called “Minsky”—after Hyman Minsky, an American economist celebrated for his work on boom-and-bust financial cycles—it places the banking system at the centre of the economy. (The Economist, January 19th 2013, p. 68)