The Chaos of Finance: The Chaotic and Marxian Foundations of Minsky’s “Financial Instability Hypothesis”

Steve Keen

Chapter 13 in Money and Production, 2024, pp 239-266 from Edward Elgar Publishing

Abstract: While Minsky’s ‘financial instability hypothesis’ (FIH) was developed as an interpretation of Keynes, it can be argued that its true foundations are the modern concept of chaos on the one hand, and an unconventional interpretation of Marx, on the other. This paper outlines this thesis and presents a nonlinear model of it. It is shown that a key concept of the FIH, namely that there are two price levels in capitalism, exists in Marx’s discussions of money. Unfortunately, these concepts have been ignored by Marx’s 20th century followers.

Keywords: Economics and Finance (search for similar items in EconPapers)
Date: 2024
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