“Free” market theory is a complete misnomer for what is the actual reality which is alternately goosed and strangled financially dominated chaos.

In the human universe there is no such thing as complete freedom, only freedom amongst known and effective barriers. Its why you can’t walk into a theater and yell “Fire!” Of course the slur of “Thats just wage and price controls” snaps the mind closed for the dilletante and orthodox mind, but that doesn’t change the actual reality.

What will change it is a new monetary paradigm, and that will open up the ability to end inflation forever with quaranteed beneficial price and asset DEFLATION and hence the end of any idea that fiscal deficits can be inflationary and in turn the ability to fund the mega-projects necessary to confront climate change.

Think paradigmatically/operant applied concept–ually and solutions begin to spring up in every nook and crannie of the economic process. And hope and survival will follow.

You’re brilliant Keen, but you’ve missed strategic policy applications that follow on from your own insights. For instance, the fact that banks create money simply with accounting entries that sum to zero. So why not implement a policy of a 50% discount (credit) to the consumer at retail sale all of which the central bank rebates back (debits) to the merchant so they are made whole on their entire price. The effect of which would be to imediately double everyone’s purchasing power, potentially double the demand for every enterprise’s goods and survices and last but not least, because we’ve never had y/o/y 50% inflation let alone moment to moment of same, resigns inflation to the dust bin of history and inverts the chronic reality of erosive inflation into beneficial deflation. Inversion of temporal universe reality…one of the classic signs of a new paradigm…like the new monetary paradigm of Gifting.

Follow that policy with a Gift/Debt jubilee policy at the point of loan signing where the bank creates the final $200k of a $400k house reduced by the 50% discount/rebate at retail sale and then the central bank says: “Ok Mr. Banker we’ll give you 50% of the interest you’d get on this $200k home loan which you can immediately put in your pocket as profit in exchange for you reducing the loan to $100k. That would integrate debt jubilee continuously into the economic process and end debt deflation forever.

Lots of other policies in my book that would stabilize the new paradigm, prevent bad actors from gaming it and even ones that would prevent excess consumption while greatly increasing investment in research and development in energy and climate change. New applied operant concepts/paradigms change everything. No more tinkering with palliatives, we need to change the world…fast.