Keen’s calls

Published 16 February 2012 05:02, Updated 16 February 2012 05:03

Nick Gardner

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WHAT HE’S GOT RIGHT

The global financial crisis. Keen warned of a global recession back in 2005, which he said would occur when the rate of credit growth slowed. He was awarded the Revere Award for Economics in the US for this prediction.

WHAT HE’S GOT WRONG

Unemployment hitting 10 per cent in Australia as a result of the GFC.

WAIT AND SEE?

House prices falling 40 per cent by 2023. Despite reports that Keen said prices would crash – and an ill-advised bet on prices falling in a shorter time scale – his initial predictions were always for Australian property prices to fall by 40 per cent over the next 10 to 15 years. Time will tell.

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