• Open Access

Predicting the ‘Global Financial Crisis’: Post-Keynesian Macroeconomics


Correspondence: Steve Keen, Associate Professor of Economics & Finance, University of Western Sydney, Locked Bag 1797 Penrith, NSW 2751, Australia. Email: debunking@gmail.com; www.debtdeflation.com/blogs


The ‘Global Financial Crisis’ is widely acknowledged to be a tail event for neoclassical economics (Stevens, 2008), but it was an expected outcome for a range of non-neoclassical economists from the Austrian and post-Keynesian schools. This article provides a survey of the post-Keynesian approach for readers who are not familiar with this literature. It will briefly cover the history of how post-Keynesian economics came to diverge so much from the neoclassical mainstream, and focus on post-Keynesian macroeconomics today and its alternative indicators of macroeconomic turbulence.