Bubbles, stagnation and ‘real’ Keynesian economics

Here is an interview with left-Keynesian economist Thomas Palley, who has written a number of books centred around the explanation of and solutions to rising inequality, the Great Recession, economic stagnation and the dominance of finance in the economy and its damaging political influence.

The interview starts at about 3 minutes in, and goes on to about 23 minutes in, and is definitely worth a watch. Palley’s 1998 book Plenty of Nothing – the downsizing of the American Dream and the case for structural Keynesianism, predicted a major recession as a consequence of rising inequality, excessive consumer credit and misguided anti-Keynesian policy. He was admittedly a bit early in his forecast, but his arguments remain relevant.


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