ABSTRACT
This paper is a study of the idea of the inherent instability of capitalism in Minsky’s conception. We begin by describing how Minsky connects the idea of financial fragility and instability with the instability of capitalism, Then we analyze two important features of Minsky’s explanation of the economy’s inherent tendency toward financial fragility and crises. The first is the subjective behavior of the economic agents, given the uncertainty in the economic world. The second is the role of banks and monetary authorities when the money supply is considered, as here, endogenous.
KEYWORDS:
History of economic thought; Minsky; financial system; Keynesianism