Economics for Everyone

MAY 17, 2010:  I visited Sydney last weekend for a Politics in the Pub session, moderated by the effervescent Frank Stilwell.  These things get a great turnout (150 or so I would guess).  I think all progressive lecture sessions should make sure there's a well-stocked bar on hand.  Does wonders both for attendance, and for the frequency with which the audience laughs at my sick jokes.

Topic for the night was the debt crisis: very timely, given recent events in Greece (through the prescient organizers had already picked that topic long before the riots started in Athens).  Speakers were myself and Steve Keen, who is one of my major influences (and who is thanked in the intro to e4e).

Lots of coincidences to the evening:

On a sad note, it took place one day after Wynne Godley's passing. (See notes on Wynne's legacy from me and from his co-author Marc Lavoie at the PEF website: http://www.progressive-economics.ca/2010/05/20/remembering-wynne-godley/.  Both Steve's and my analyses of the debt fragility of the current moment were obviously informed by Godley's analysis in recent years of the link between debt and aggregate demand, and the necessity of sector balances summing to zero (which implies that not all sectors can deleverage at the same time).  So Godley was in the room that night, for sure.  (Like the Sandinistas used to say at their rallies, when listing their comrades who had died in the struggle: "Wynne Godley ... Presente!").

On a happy note, the Sydney session took place the same day that Steve was rightfully named winner of the Revere Award, issued by the Real-World Economics Review for the economist who had most scuurately and specifically warned of the coming financial metldown.  Congratulations Steve!  He gets an amazing amount of shit and abuse hurled his way from financial industry economists in Australia (the ones more concerned with selling mutual funds than with understanding how the economy actually works).  Steve will be proven right -- and this award is a nice feather in his cap.

Here is Steve's commentary on the evening, complete with video clips: http://www.debtdeflation.com/blogs/2010/05/15/stanford-and-keen-double-bill/

And here is my effort to take Steve's debt-deflation math and apply it to Canadian data: http://www.progressive-economics.ca/2010/05/18/why-deleveraging-hurts-so-much/

Politics in the Pub is a wonderful initiative.  I wish there were more like it.  Thanks to Frank and Co. for having me over.