Professor Steve Keen explains why debt and credit matter, and use them to show why the 2007 crisis occurred. He shows why several of the countries that avoided a crisis in 2007 are on the verge of one today.
It should be obvious: financial crises are caused by the financial sector, and its primary product is debt, which is necessarily created when credit-money is created. And borrowers only commit to additional debt because they wish to spend, so there is an intimate link between private debt, credit, and demand.
Views: