Daily Archives: Jan 10, 2018 at 07:41 am EDT

5 Questions For Professor Steve Keen On Debt And Financial Crises

What might trigger the next financial crisis and recession? Private debt tops the list, explains Steve Keen, an economics professor who heads the School of Economics, Politics and History at Kingston University. It’s a potent threat, in part because debt has increased since the 2008 financial crisis and interest rates appear poised to trend higher in the years ahead. Yet the risk bound up with private debt is widely underappreciated in the economics profession, Keen explains in his recent book: Can We Avoid Another Financial Crisis? “Even after the [last] crisis, mainstream economists still reject out of hand arguments that the aggregate level and rate of change of debt matters,” he writes. History suggests otherwise, Keen insists, citing the empirical record as proof. The Capital Spectator recently asked Keen for a summary of why debt matters for the business cycle and how the US and other economies currently rank on this critical risk factor.
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Macro Briefing: 10 January 2018

Federal judge rules in favor of DACA immigration program: The Hill
Trump voices willingness to deal on immigration legislation: Bloomberg
Federal court rules against GOP re: gerrymandering districts: The Atlantic
Iran’s supreme leader calls for revenge against US for recent protests: NY Times
S. Korea’s president cites Trump as factor for new talks with N. Korea: NY Times
World Bank predicts global growth will peak this year: The Telegraph
Job openings in US fall to six-month low in Nov: Reuters
US Small Business Optimism Index remains close to record high in Dec: NFIB
The path to approval of a bitcoin ETF still faces high regulatory hurdles: Reuters
US 10-year Treasury yield rises to 2.55%, a 10-month high: Reuters