Veblenian and Minskian financial markets
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 â€˜realâ€™ 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.
Volume (Year): 10 (2013)
Issue (Month): 1 ()
|Contact details of provider:|| Web page: http://www.elgaronline.com/ejeep|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Dimitri Papadimitriou & L. Randall Wray, 1998.
"The Economic Contributions of Hyman Minsky: varieties of capitalism and institutional reform,"
Review of Political Economy,
Taylor & Francis Journals, vol. 10(2), pages 199-225.
- Dimitri B. Papadimitriou & L. Randall Wray, 1997. "The Economic Contributions of Hyman Minsky: Varieties of Capitalism and Institutional Reform," Economics Working Paper Archive wp_217, Levy Economics Institute.
- Dimitri B. Papadimitriou & L. Randall Wray, 1998. "The Economic Contributions of Hyman Minsky: Varieties of Capitalism and Institutional Reform," Macroeconomics 9802018, EconWPA.
- J. Patrick Raines & Charles G. Leathers, 2008. "Debt, Innovations, and Deflation," Books, Edward Elgar Publishing, number 4153.
- Patrick Raines, J. & Leathers, Charles G., 1993. "Evolving Financial Institutions in Veblen's Business Enterprise System," Journal of the History of Economic Thought, Cambridge University Press, vol. 15(02), pages 249-264, September.
- Hyman P. Minsky, 1996. "Uncertainty and the Institutional Structure of Capitalist Economies," Economics Working Paper Archive wp_155, Levy Economics Institute.
- Hyman P. Minsky, 1998. "Uncertainty and the Institutional Structure of Capitalist Economies," Macroeconomics 9809015, EconWPA.
- Veblen, Thorstein, 1904. "Theory of Business Enterprise," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number veblen1904.
- Dimitri B. Papadimitriou & L. Randall Wray, 2010. "Introduction: Minsky on Money, Banking and Finance," Chapters,in: The Elgar Companion to Hyman Minsky, chapter 1 Edward Elgar Publishing.
- J. P. Raines & Charles G. Leathers, 2000. "Economists and the Stock Market," Books, Edward Elgar Publishing, number 1235.
- Rutledge Vining, 1939. "Suggestions of Keynes in the Writings of Veblen," Journal of Political Economy, University of Chicago Press, vol. 47, pages 692-692.
- Thorstein Veblen, 1905. "Credit and Prices," Journal of Political Economy, University of Chicago Press, vol. 13, pages 460-460.
- Thorstein Veblen, 1908. "On the Nature of Capital: Investment, Intangible Assets, and the Pecuniary Magnate," The Quarterly Journal of Economics, Oxford University Press, vol. 23(1), pages 104-136.
- Eric Tymoigne, 2012. "Financial fragility," Chapters,in: Handbook of Critical Issues in Finance, chapter 14, pages i-ii Edward Elgar Publishing. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:elg:ejeepi:v:10:y:2013:i:1:p28-43. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Helen Craven)
If references are entirely missing, you can add them using this form.