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Keen1995FinanceEconomicBreakdown_JPKE_OCRed.pdf
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Summary

Steve Keen models Minsky's "financial instability hypothesis" using Goodwin's limit cycle model, incorporating concepts such as debt, income inequality, and government intervention. Minsky's hypothesis, based on Keynes' work, argues that advanced capitalist economies are fundamentally unstable and prone to depression after periods of debt-financed "euphoria." The model shows how these factors can lead to a chaotic system with the possibility of a divergent breakdown, simulating a depression. Keen's work builds on Minsky's contribution to codifying Keynes' insights on investment, uncertainty, and expectations, providing a foundation for a Post Keynesian theory of economic instability.

Description

Steve Keen models Minsky's "financial instability hypothesis" using Goodwin's limit cycle model, incorporating concepts such as debt, income inequality, and...

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  • File Format: PDF
  • File Size: 794 KB
  • Pages: 29
  • Language: EN
  • Total Downloads: 50
  • Last Updated: 1 month ago

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