In a world where most economists failed to foresee the 2008 financial meltdown, Professor Steve Keen stands out as a rare voice who not only predicted the crisis but also understood the underlying causes. In this episode, Keen reveals how mainstream economics, with its outdated models, continues to ignore the real-world chaos and complexity of markets. His insights challenge conventional wisdom, showing why financial crashes are not anomalies but systemic outcomes of a fundamentally unstable system. Discover why the idea of markets naturally reaching equilibrium is a myth, and how physics — not economics — offers the tools to understand economic instability. Keen shares how nonlinear, non-equilibrium models used in weather forecasting and physics actually predict crises before they happen. He explains how debt, particularly private borrowing, acts as a catalyst for financial instability, contradicting mainstream views that see money as a neutral medium. We break down:

• The flaws in the “equilibrium” assumption that underpins neoclassical economics
• How the actual dynamics of credit and debt create cycles of boom and bust
• Why the famous “money multiplier” is a fallacy and banks are money creators, not just intermediaries
• The parallels between markets and complex physical systems like weather and fluid dynamics
• What regulators get wrong when they rely solely on interest rates to control inflation and instability

You’ll leave with a new perspective on how economies really work — an understanding you need to see through the myths and prepare for the crises ahead. Perfect for financial professionals, students of economics, or anyone tired of the outdated models that failed to predict the 2008 crash. This episode challenges everything you’ve been told — and offers a roadmap to understanding the true drivers of economic chaos. Are you ready to see the economy as it really is, not as the textbooks say? Tune in and unlock the science behind systemic instability.