The map should match the territory
Orthodox economics didn’t see the last crisis coming — or the one before it. Its models leave out the things that actually drive the economy: debt, energy, and the financial system. Here’s what we do differently.
The problem with the mainstream
Mainstream models assume the economy tends toward equilibrium, that banks merely lend out savings, and that money and debt don’t much matter. Reality disagrees. Economies lurch, banks create money when they lend, and private debt drives booms and busts. Models built on the wrong assumptions give the wrong answers — confidently.
A different foundation
Steve Keen builds models grounded in how the economy actually works: non-equilibrium by default, monetary from the ground up, and stock-flow consistent so every flow of money has a source and a destination. Debt, energy and the banking system aren’t bolted on — they’re built in. That’s the difference between a model that describes the economy and one that merely flatters a theory.
The four fundamental errors
Orthodox economics rests on four assumptions the data doesn’t support — about banking, energy, climate damage, and government money.
Detailed breakdown coming soon.
Not just theory — a track record
Steve Keen was one of the few economists to publicly warn of the 2008 crisis, years ahead, on the back of these models. His work on debt deflation and endogenous money — long dismissed by the mainstream — was later validated, including by the Bank of England’s 2014 confirmation that bank lending creates deposits. Ravel and RavelSim put the same modelling power in your hands.
See the economy as it actually works.
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