A “Minsky crisis” in a Stock-Flow Consistent model

Tarik Mouakil

Revue de la Régulation - Capitalisme, institutions, pouvoirs, 2014, vol. 16

Abstract: This study uses the Stock-Flow Consistent modelling approach to assess the relevance of Minsky’s demonstration of his financial instability hypothesis. We show that this demonstration, based on the assumption of a pro-cyclical leverage ratio, is incompatible with the Kaleckian analysis of profits endorsed by Minsky. Therefore we suggest replacing the assumption of a pro-cyclical leverage ratio with one of a pro-cyclical short-term borrowing, which also appears in Minsky’s work.

Keywords: Minsky; crises financières; modèles SFC; procyclicité; risque; ratios financiers; Minsky; financial crises; Stock-Flow models; Minsky; crisis financieras; modelos SFC; prociclicidad; riesgo; ratios financieros (search for similar items in EconPapers)
JEL-codes: B22 B50 E12 E4 E5 G1 G11 G21 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:rvr:journl:2014:10963

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