The OECD established NAEC (“New Approaches to Economic Challenges“) in response to its failure to warn of the economic crisis that began in August 2007, and which led, a year later, to the collapse of Lehman Brothers.
This is my ten minute talk to NAEC’s conference “10 Years after the failure of Lehman Brothers: What have we learned?“. I cover the simple reasons why mainstream economists didn’t see the crisis coming: because they don’t understand money, and don’t include banks, debt or money in their macroeconomic models.
I had to compress my talk into just ten minutes, and also run it from a remote PC, so I couldn’t run my models live as I normally do, and I stuffed up running the mini-movies I recorded of the Minsky files. However, they’re in the attached PPTX file, so if you want to see them properly, just download the PPTX file and run it in screenshow mode. To install Minsky, click here and download the relevant version for your computer.
You can also watch the OECD recording of my session here (I start at the 2 hour 58 minute mark).
I also highly recommend watching the introduction to the session by the Secretary-General of the OECD, Angel Gurria. He gave an excellent speech, commencing with two items I often note in my own speeches: Robert Lucas’s Presidential Address to the American Economic Association in which he claimed that Neoclassical economists had worked out how to prevent Depressions, and the OECD’s own Economic Outlook of June 2007, which predicted that 2008 would be a great year.