May 6 • 39M

HANK or RANK – how monetary policy works, or doesn’t

New Keynesians assume the role of one representative agent in their models. But what if we don't all behave the same? Imagine if we were all individuals.

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Steve Keen
Economist Steve Keen talks to Phil Dobbie about the failings of the neoclassical economics and how it reflects on society.ems-based alternative to mainstream economics
Episode details

New Keynesian economists have accepted that their HANK model, which models the behaviour of one representative agent, doesn’t explain the outcomes on different income groups. As we know, the latest rate rises are having a more profound impact on income variation. Steve says their models don’t work because they don’t realise the distribution of income. T…

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