Books Money and Macroeconomics from First Principles for Elon Musk and Other Engineers by Stephen Keen (Author)

The book "Money and Macroeconomics from First Principles for Elon Musk and Other Engineers" by Stephen Keen is designed for engineers, quants, and practical thinkers who want an accounting-consistent, physics-aware approach to economics. It starts from first principles such as double-entry bookkeeping and thermodynamics, rather than analogies, to explain money creation, macroeconomic dynamics, and cycles.

Key points from the book include:

Banks create money by issuing loans, contrary to mainstream economics which views them as mere intermediaries.

Credit plays a central role in economic cycles and crises like the Global Financial Crisis.

The economy is inherently cyclical and private debt can lead to dangerous debt-deflations if unchecked.

Government deficit spending is necessary to counteract debt-deflation.

Inflation arises mainly from income distribution struggles, not simply from money supply growth.

GDP is fundamentally energy transformed into useful work, making the idea of decoupling GDP from energy use unrealistic.

Steve Keen critiques mainstream neoclassical economics for relying on false analogies and ignoring real-world instability.

The book encourages reasoning from clear accounting and physical laws, instead of oversimplified equilibrium models.