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Minsky 2.0 Introduction (6) A Basic Banking Model

Summary:
This is the key feature of Minsky in comparison to all other System Dynamics platforms: it is the only one to use double-entry bookkeeping to build models of financial flows. This is an inherently superior paradigm to using flowcharts to model monetary dynamics. I build a basic model which nonetheless shows that models of capitalism ...

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This is the key feature of Minsky in comparison to all other System Dynamics platforms: it is the only one to use double-entry bookkeeping to build models of financial flows. This is an inherently superior paradigm to using flowcharts to model monetary dynamics. I build a basic model which nonetheless shows that models of capitalism without banks, debt and money are useless, and then show just how far Minsky can go in modelling capitalism by showing Pedro Pratas’ monetary model of Portugal.


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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