Post Keynesian Economics is not the solution, but rather a palliative  economic “solution” in search of a complete philosophy and its exact alignment with reflecting policies.

Basically I don’t disagree with anything Keen says in the above video in regard to money, debt, Banks, the general disequilibrium of the economy or the false assumption by DSGE theorists of rising marginal costs (although the inherent price inflationary nature of the economy which Keen misses/overlooks does make prices continually go up, and yet with a universal dividend as policy, the economy could be stabilized and then costs would actually be free to fall as innovation and artificial intelligence reduced the rational need for labor…which is a cost after all), only that Post Keynesian theory is not and cannot be the necessary integration that actually solves the instability of the economic system. And not coincidentally, also cannot transform the economy from its present unethical and onerous state where the individual must serve the system into one where the system serves the individual. 

Keen, for all of his iconoclastic insights (for which over the last few years I have often praised him) is still a tweaker of Keynes, a reformer, and I’m sorry to say, still in reaction to DSGE instead of presenting a comprehensive alternative. I have also said that his de-bunking of DSGE is probably a task worthy of its own Nobel prize. But it is not the necessary transformation of economic theory and the economy which over the last several centuries has abundantly changed so much and yet still persists in its preoccupations with scarcity and almost exclusively with production to the point of clear unreality.

That actual and necessary complete integration and hence transformation is instead Social Credit.

In other words Neo-classical economics and Post Keynesian economics is not an actual opposing Duality that can be completely integrated, but rather a mere reaction to it…as Keynesian economics was to Classical economics…and then what happened?  That’s right, Finance perverted it because it wasn’t a true Duality that completely integrated and balanced the economy!

Douglas’s Social Credit is that integration because he recognized 90+ years ago, and before Keen, that money, debts and banks were relevant and that the economy was in a constant state of disequilibrium instead of the general equilibrium of DSGE….and also integrated those facts with a philosophy and policies that exactly aligned with each other completely within profit making systems; and that complete integration would also forever transform economics and finance because it would also balance the paradigm of debt with an opposing Duality of Gifting directly to the individual!!!  Social Credit will also bring the aligning and reflecting philosophical concept of mysticism, namely simultaneity…without actual mysticism,…..via the temporal universe economic policies of a direct individual dividend and a compensated retail discount to consumers…and which, because they are variable, would create a continuous equilibrium of adequate individual incomes and consumer prices…..which Keynesian economics of whatever stripe is unable to do….because their policies are indirect and require Time lapses, and so cannot achieve the above continuous simultaneous equilibrium…let alone the obviously correct ethical condition of the system serving the individual!!!

P.S.

Unfortunately Dr. Keen is apparently just as petulant, reactionary and authoritarian as any of the DSGE economists he so correctly critiques for same.  View the comments between he and myself on his youtube channel here, if you think I exaggerate:

Dr. Keen, apply your iconoclastic abilities to the orthodox DSGE rejoinder that cost accounting is merely a static look at the economy. Cost accounting is an integrated look at both the statistics and the dynamic nature of cost in the economy. When you see that is when you will realize Social Credit is the theory you are searching for.