Debunking Economics
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 Hardcover edition | |
| Author | Steve Keen |
|---|---|
| Language | English |
| Subject | Economics |
| Genre | Non-fiction |
| Publisher | Zed Books |
Publication date | July 1, 2001 |
| Media type | Print, e-book |
| Pages | 352 pp |
| ISBN | 978-1856499927 |
| OCLC | 925772138 |
| 330 | |
| LC Class | HB71 .K34 2001 |
Debunking Economics: The Naked Emperor of the Social Sciences is a book by the economist Steve Keen about the problems with mainstream economics. The book was initially published by Zed Books in 2001, and a revised and updated version was published in 2011.[1] Translated versions were also published in Spanish, French and Chinese.[2] The book is suitable for a general reader, and uses words and figures rather than equations to make its points, but is aimed at those with at least some basic knowledge of economics.
The book strongly criticises many of the key ideas and assumptions of neoclassical economics.[3] It argues that components of the theory such as demand curves, which are supposed to represent the aggregate behaviour of consumers, are theoretical constructs that have little empirical support. Keen questions the conventional theory of the firm, arguing that monopolies can have a useful role. He also revisits the Cambridge capital controversy of the 1960s to argue that ideas such as capital and profit are ill-defined.
One of the book’s main critiques is that macroeconomic models or theories such as the efficient-market hypothesis rely on the assumption that the economy can be viewed as being at or near equilibrium. But according to Keen, this is an over-simplification of the way that the real economy behaves. He argues that economists need to become more familiar with the mathematical tools needed to study dynamical systems, such as nonlinear differential equations.
The final section gives a discussion of possible alternatives, such as Marxian economics, Austrian economics, complexity economics, and so on. Keen concludes that, while none of these theories are completely satisfactory, pursuing them may lead to a more realistic understanding of the economy.
