What Central Banks Get Wrong About Economic Equilibrium

The video discusses the limitations of general equilibrium in economics, as highlighted by Professor Keen. It critiques the traditional economic mindset that assumes equilibrium and explores the impact of private debt on economic models. The role of central banks, particularly in the context of quantitative easing and forward guidance, is examined, emphasizing the challenges they face in maintaining economic stability.

What is the main argument presented by Professor Keen regarding general equilibrium?

What challenges does Janet Yellen face in the current economic climate according to the text?

How does the accumulation of private debt relate to the economic models discussed?

Discuss the implications of the 'pack with the devil' metaphor used in the context of economic policy.

What does the text suggest about the relationship between interest rates and economic chaos?