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Veblenian and Minskian financial markets


  • Giorgos Argitis

    (university of Athens)


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 ‘real’ 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.

Suggested Citation

  • Giorgos Argitis, 2013. "Veblenian and Minskian financial markets," European Journal of Economics and Economic Policies: Intervention, Edward Elgar Publishing, vol. 10(1), pages 28-43.
  • Handle: RePEc:elg:ejeepi:v:10:y:2013:i:1:p28-43

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    References listed on IDEAS

    1. 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.
    2. J. Patrick Raines & Charles G. Leathers, 2008. "Debt, Innovations, and Deflation," Books, Edward Elgar Publishing, number 4153.
    3. 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.
    4. Hyman P. Minsky, 1996. "Uncertainty and the Institutional Structure of Capitalist Economies," Economics Working Paper Archive wp_155, Levy Economics Institute.
    5. Veblen, Thorstein, 1904. "Theory of Business Enterprise," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number veblen1904.
    6. 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.
    7. J. P. Raines & Charles G. Leathers, 2000. "Economists and the Stock Market," Books, Edward Elgar Publishing, number 1235.
    8. Rutledge Vining, 1939. "Suggestions of Keynes in the Writings of Veblen," Journal of Political Economy, University of Chicago Press, vol. 47, pages 692-692.
    9. Thorstein Veblen, 1905. "Credit and Prices," Journal of Political Economy, University of Chicago Press, vol. 13, pages 460-460.
    10. 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.
    11. repec:mes:jeciss:v:31:y:1997:i:2:p:493-500 is not listed on IDEAS
    12. Eric Tymoigne, 2012. "Financial fragility," Chapters,in: Handbook of Critical Issues in Finance, chapter 14, pages i-ii Edward Elgar Publishing.
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    Cited by:

    1. Apostolos Fasianos & Diego Guevara & Christos Pierros, 2016. "Have We Been Here Before? Phases of Financialization within the 20th Century in the United States," Economics Working Paper Archive wp_869, Levy Economics Institute.

    More about this item

    JEL classification:

    • A20 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - General
    • B15 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Historical; Institutional; Evolutionary
    • B25 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Historical; Institutional; Evolutionary; Austrian; Stockholm School
    • B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Historical; Institutional; Evolutionary
    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • G3 - Financial Economics - - Corporate Finance and Governance


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