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Household Debt: The Final Stage in an Artificially Extended Ponzi Bubble
Author(s) -
Keen Steve
Publication year - 2009
Publication title -
australian economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.308
H-Index - 29
eISSN - 1467-8462
pISSN - 0004-9018
DOI - 10.1111/j.1467-8462.2009.00560.x
Subject(s) - economics , monetary economics , debt , inflation (cosmology) , keynesian economics , nominal interest rate , monetary policy , real interest rate , macroeconomics , theoretical physics , physics
Private debt is largely ignored by conventional macroeconomics. It is a key issue in the non-orthodox ‘Minskian’ approach to economics, which rejects the standard ‘veil over barter’ attitude towards money (Minsky (1982a)). Ironically, though Friedman championed ‘money neutrality’, unintended support for Minsky’s ‘money matters’ position can be found in Friedman. His well-known assertion that the nominal quantity of money was irrelevant contained an important but neglected proviso, highlighted below: