Veblenian and Minskian financial markets

Georgios Argitis

European Journal of Economics and Economic Policies: Intervention, 2013, vol. 10, issue 1, 28-43

Abstract: The purpose of this paper is to provide an exposition of Veblen's and Minsky's views on the financial markets and to explore the possibility of any common denominators. I stress that they both bring forward the importance of leverage as a path-breaking insight, as well as of liquidity and solvency in the real-world financial markets characterized by uncertainty, innovations and evolving institutions. I remark that Veblenian and Minskian financial markets are naturally and endogenously unstable, nonneutral and influence ‘real’ economic performance. I argue that if Veblen's institutional logic in his business enterprise system became integrated with Minsky's financial processes of creation and destruction, it could set up a realistic framework to analyse the evolution of financial markets in capitalism.

JEL-codes: A20 B15 B25 B52 E12 E44 G3 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:elg:ejeepi:v:10:y:2013:i:1:p28-43

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