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
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."
References: Add references at CitEc
Citations: View citations in EconPapers (8) Track citations by RSS feed
Downloads: (external link)
Access to full text is restricted to subscribers.
Working Paper: Profits, Confidence and public deficits: modeling Minsky's institutional dynamics (2005)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:mes:postke:v:28:y:2005:i:1:p:136-154
Ordering information: This journal article can be ordered from
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 ().