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Modeling Minsky in MInsky

Summary:
The objective of Minsky is to make it easy to build strictly monetary dynamic macroeconomic models. However it also has to be able to do what other system dynamics models can do–model a dynamic system as a flowchart. One of my crucibles here was that I should be able to build my own 1995 model ...

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The objective of Minsky is to make it easy to build strictly monetary dynamic macroeconomic models. However it also has to be able to do what other system dynamics models can do–model a dynamic system as a flowchart. One of my crucibles here was that I should be able to build my own 1995 model of Hyman Minsky’s “Financial Instability Hypothesis” in Minsky.



Last night I finally did that, and I thought I’d share the results with a little movie of the program running. It also generates a numerical object that I can claim to have “invented”. It’s nowhere near as grand as the Mandelbrot plot, but it is my little mathematical object of beauty, and it is a direct output of Minsky’s model of how government spending can stabilize an unstable economy.



Steve Keen
Steve Keen (born 28 March 1953) is an Australian-born, British-based economist and author. He considers himself a post-Keynesian, criticising neoclassical economics as inconsistent, unscientific and empirically unsupported. The major influences on Keen's thinking about economics include John Maynard Keynes, Karl Marx, Hyman Minsky, Piero Sraffa, Augusto Graziani, Joseph Alois Schumpeter, Thorstein Veblen, and François Quesnay.

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