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Friede Gard Prize Workshop 04 Goodwin To Minsky

Summary:
In this very short video (for me! Under 15 minutes), I show how to add private debt to the Goodwin cyclical growth model that I built in the previous workshop. The result is a model of Minsky's Financial Instability Hypothesis.

Topics:
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In this very short video (for me! Under 15 minutes), I show how to add private debt to the Goodwin cyclical growth model that I built in the previous workshop. The result is a model of Minsky's Financial Instability Hypothesis.
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.

4 comments

  1. 💰 Make $750 Per Day

    "We become what we think about most of the time, and that's the strangest secret." –Earl Nightingale

  2. What would you tell the politicians the policy implications are of Goodwin's work?

    • Good question!

      First off, that a capitalist economy is inherently cyclical–the equilibrium fetish of Neoclassical economics goes out the window. This is driven by the instability of investment–exactly Keynes's observation in his 1937 General Theory of Employment paper. Since that instability affects workers–who aren't the source of it–it's an argument for both unemployment benefits and counter-cyclical government spending.

      You need to include Minsky's insights as well though. There's an interesting story there as to why Goodwin himself didn't do that.

    • @ProfSteveKeen of course! Slapping my forehead – I should have said – I presume the logical policy prescription would be – both unemployment benefits and counter-cyclical government spending. 🙂

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