Steve is the author of ‘Debunking Economics’ (2001), a trenchant critique of conventional, neoclassical economics such as the efficient market hypothesis, which shows how mainstream models dangerously distort understanding of the world. In response, Steve has created more realistic macroeconomic models (dynamic disequilibrium money circuit models) and open source programs building on the insights of Hyman Minsky. 

In 2005, based on original research into the unsustainable boom in private debt in developed countries, Steve predicted the global financial crisis of 2007/08. 

His most recent book ‘Can We Avoid Another Financial Crisis?’ (2017) explains why the crisis happened, and what we have to do to end it.

How this differs from the mainstream

The mainstream generally do not examine the nature and role of debt in the economy. Famously mainstream macro-economic models used by banks and governments in the run up to the 2007/8 financial crisis, did not include the dynamics of debt. This was one of the reasons they could not represent the possibility of a financial crisis. It is difficult to forecast when or if a financial crisis might occur anyway, but if models do not actually include debt dynamics the main cause of crises, it is impossible. Both the mainstream and Post Keynesian economic models have also ignored the role of energy, when nothing can be produced without using energy. The mainstream generally do not examine the history and development of neo-classical thinking which reveals the many debates and revelations of the weaknesses of this school of economics.

For more on Steve's work see:

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