A monetary Minsky model of the Great Moderation and the Great Recession

Steve Keen

Journal of Economic Behavior & Organization, 2013, vol. 86, issue C, 221-235

Abstract: Steve Keen's model of Minsky's Financial Instability Hypothesis (Keen, 1995) displayed qualitative characteristics that matched the real macroeconomic and income-distributional outcomes of the preceding and subsequent fifteen years: a period of economic volatility followed by a period of moderation, leading to a rise of instability once more and a serious economic crisis. This paper extends that model to build a strictly monetary macroeconomic model which can generate the monetary as well as the real phenomena manifested by both The Great Recession and The Great Moderation.

Keywords: Hyman Minsky; Financial instability hypothesis; Debt deflation; Endogenous money; Nonlinear dynamics; Ordinary differential equations (search for similar items in EconPapers)
JEL-codes: B50 C65 E12 E20 E37 E47 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (62)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:86:y:2013:i:c:p:221-235

DOI: 10.1016/j.jebo.2011.01.010

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