Steve Keen: How He Saw "It" Coming 2/7

The transcript discusses the speaker's journey from a classical economics believer to a critic, influenced by Minsky's work. The speaker developed a mathematical model to represent Minsky's ideas, focusing on the role of private debt in economic cycles. The model predicts potential economic breakdowns due to excessive debt. In 2005, the speaker identified exponential debt growth in Australia and the US, raising alarms about a possible global economic collapse.

What led the speaker to question classical economics?

• A lecture by Minsky

• A transformative experience in their first year

• A book on socialist movements

• A debate with a fellow student

What was the speaker's academic focus after discovering Minsky's work?

• Joining a socialist movement

• Creating a mathematical framework for Minsky's model

• Developing a new economic theory

• Writing a book on classical economics

What does the speaker's model suggest about economic cycles?

• They are solely based on government policies

• They always lead to equilibrium

• They can lead to either equilibrium or breakdown

• They are irrelevant to economic theory

What did the speaker discover about the debt-to-GDP ratio in 2005?

• It was decreasing steadily

• It was growing exponentially

• It was irrelevant to economic collapse

• It was stable and unchanging

What action did the speaker feel compelled to take after analyzing the debt data?

• Ignore the findings

• Raise the alarm locally and internationally

• Invest in the stock market

• Write a novel about economics