Remember climate change? Believe it or to, even with COVID-19 dominating our consciousness, the environment is still a thing. A new report by NGFS – a voluntary group of central bankers concerned about the environment – reckons the world’s global GDP could fall by 25 percent by 2100 if we do not do more to reduce greenhouse gas emissions. Whilst their intent might be right, Steve Keen is concerned that their modelling is wrong. Like most of the economics profession there is no application of systems thinking. Models are too simplistic, ignore tipping points and assume a closed system that doesn’t account for vital external variables. He says the worst of humanity is dragging us into a crisis, exploiting the worst of human behaviour – that we don’t think it will personally affect us.
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