Keynes’ and Minsky’s Macroeconomics

Ralf Pauly ()
Additional contact information
Ralf Pauly: Osnabrück University

Chapter Chapter 3 in Economic Instability and Stabilization Policy, 2021, pp 95-139 from Springer

Abstract: Abstract In Minsky’s novel economic paradigm, unlike the Keynesian-influenced ISLM model, profits, private banks and debt financing play a central role. Minsky replaces the Keynesian relationship between investment and saving with the future-oriented interdependence between investment and profit. Profit is ultimately the focus of economic activity in the capitalist market economy. In good times, debt financing increases the chances of profit drastically through its leverage effect, but in bad times the risk of loss is even more drastic. Private banks, together with central banks, favor economic risks and make the economic process inherently unstable.

Date: 2021
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
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: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-658-33626-4_3

Ordering information: This item can be ordered from
http://www.springer.com/9783658336264

DOI: 10.1007/978-3-658-33626-4_3

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().