Economics at your fingertips  

Profits, confidence, and public deficits: modeling Minsky's institutional dynamics

Eric Nasica and Alain Raybaut ()

Journal of Post Keynesian Economics, 2005, vol. 28, issue 1, 136-154

Abstract: In this paper, we present a Minskyan model that deals explicitly with the influence of the institutional dynamics on the relation between finance, investment, and economic fluctuations. We show that stabilization policy can be efficient in certain cases--namely, when fiscal policy is sensitive enough to variations in private investment. In contrast, the economy is unstable when the deficit constraint is not flexible enough. These results, which echo recent debates and proposals on budget deficit rules in the Economic and Monetary Union, are fully consistent with the way Minsky considered that public authorities should "stabilize an unstable economy."

Date: 2005
References: Add references at CitEc
Citations: View citations in EconPapers (8) Track citations by RSS feed

Downloads: (external link) (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Profits, Confidence and public deficits: modeling Minsky's institutional dynamics (2005) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from

DOI: 10.1080/01603477.2005.11051465

Access Statistics for this article

More articles in Journal of Post Keynesian Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().

Page updated 2020-07-10
Handle: RePEc:mes:postke:v:28:y:2005:i:1:p:136-154