The economic crisis of 2008 was unanticipated by mainstream economics, and only explicable in its dominant DSGE paradigm via the assumption of large exogenous shocks. However a simple three equation complex system model, derived simply from introducing debt-financed investment into a classic cyclical model of the economy, can generate the primary features of both the crisis and the so-called “Great Moderation” which preceded it.


Steve Keen Professor of Economics & Head of School, Economics History & Politics

Economics as a Complex Evolutionist System e-session