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The Global Crisis According to Post-Keynesians

In: Critique of the New Consensus Macroeconomics and Implications for India

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  • Dilip M. Nachane

    (Indira Gandhi Institute of Development Research)

Abstract

The post-Keynesian explanation of the global crisis is centred around six major themes, viz.: (i) Minsky’s theory of financial fragility with its focus on institutional features, but extrapolated to households, (ii) financial fragility in the global context, (iii) herd behaviour of investors, (iv) endogeneity of money, (v) changes in the distribution of income between workers, capitalists and/or rentiers and (vi) flawed development and lax regulation of the financial sector. In this chapter, we attempt an explanation of the global crisis by interpreting these themes against the general theoretical backdrop of post-Keynesianism. We also present an analysis of Godley’s unsustainable processes and examine their potential usefulness as leading indicators of a crisis.

Suggested Citation

  • Dilip M. Nachane, 2018. "The Global Crisis According to Post-Keynesians," India Studies in Business and Economics, in: Critique of the New Consensus Macroeconomics and Implications for India, chapter 0, pages 205-220, Springer.
    • Handle: RePEc:spr:isbchp:978-81-322-3920-8_9
    DOI: 10.1007/978-81-322-3920-8_9
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    References listed on IDEAS

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