A Theory of Minsky Super-Cycles and Financial Crises
AbstractThis paper argues that Hyman Minsky's financial instability hypothesis weaves together a medium term Keynesian approach to the business cycles in the spirit of Samuelson (1936) and Hicks (1950) with long cycle thinking of economists such as Schumpeter (1939) and Kondratieff. Post Keynesians have devoted considerable attention to the medium term dimension of Minsky's thinking. The current paper concentrates on the long swing dimension and introduces the idea of "Minsky super-cycles." It is the supercycle that ultimately permits financial crisis. Whereas financially driven business cycles occur every decade, financial crises occur over longer durations reflecting the longer phase of the super-cycle.
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Bibliographic InfoPaper provided by IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute in its series IMK Working Paper with number 05-2009.
Length: 32 pages
Date of creation: 2009
Date of revision:
Minsky; business cycles; financial instability hypothesis;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-09-19 (All new papers)
- NEP-BEC-2009-09-19 (Business Economics)
- NEP-CBA-2009-09-19 (Central Banking)
- NEP-HPE-2009-09-19 (History & Philosophy of Economics)
- NEP-MAC-2009-09-19 (Macroeconomics)
- NEP-PKE-2009-09-19 (Post Keynesian Economics)
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