Now it’s time for another “kill your idols” moment.
Steve Keen is one of my favorite economists. I learned a lot reading his book and his blog and I really enjoyed meeting him in Brussels.
However, recently in his blog he started bashing in Larry Summers (another economist which I admire and has been a truly influence on me).
Well, let’s see what is this all about. First of all, Steve Keen is the True Follower of Keynes (and Minsky) and all the other Post-Keynesians don’t even get endogenous money, (let alone the New Keynesians…)
So he says the main point nobody understands, is the effect of credit in overall demand. (OK he’s got a point but let´s return to that later). And he says Summers doesn’t understand that and that’s why he talks about the full employment natural interest rate, secular stagnation and all that schnitzel.
I don’t get why Keen has to bash on Summers, because the rise of credit is caused by the Secular Stagnation and the fall of the FENIR, so both theories could be seen as complements and not rivals. (at least in my point of view).
I still have some problems with Keen’s credit logic, (and he didn’t answer my questions) but I will leave that for another time.
What I really don’t get is why Steve Keen has to downgrade everyone as if he was the only true Messiah.