A “Minsky crisis” in a Stock-Flow Consistent model
This study uses the Stock-Flow Consistent modelling approach to assess the relevance of Minsky’s demonstration of his financial instability hypothesis. We show that this demonstration, based on the assumption of a pro-cyclical leverage ratio, is incompatible with the Kaleckian analysis of profits en...
Saved in:
Main Author: | |
---|---|
Format: | Article |
Language: | English |
Published: |
Association Recherche & Régulation
2014-12-01
|
Series: | Revue de la Régulation |
Subjects: | |
Online Access: | https://journals.openedition.org/regulation/10963 |
Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
_version_ | 1832577991014612992 |
---|---|
author | Tarik Mouakil |
author_facet | Tarik Mouakil |
author_sort | Tarik Mouakil |
collection | DOAJ |
description | This study uses the Stock-Flow Consistent modelling approach to assess the relevance of Minsky’s demonstration of his financial instability hypothesis. We show that this demonstration, based on the assumption of a pro-cyclical leverage ratio, is incompatible with the Kaleckian analysis of profits endorsed by Minsky. Therefore we suggest replacing the assumption of a pro-cyclical leverage ratio with one of a pro-cyclical short-term borrowing, which also appears in Minsky’s work. |
format | Article |
id | doaj-art-d95a560bdb3c49f1a33d0287f0fbfaef |
institution | Kabale University |
issn | 1957-7796 |
language | English |
publishDate | 2014-12-01 |
publisher | Association Recherche & Régulation |
record_format | Article |
series | Revue de la Régulation |
spelling | doaj-art-d95a560bdb3c49f1a33d0287f0fbfaef2025-01-30T14:25:50ZengAssociation Recherche & RégulationRevue de la Régulation1957-77962014-12-011610.4000/regulation.10963A “Minsky crisis” in a Stock-Flow Consistent modelTarik MouakilThis study uses the Stock-Flow Consistent modelling approach to assess the relevance of Minsky’s demonstration of his financial instability hypothesis. We show that this demonstration, based on the assumption of a pro-cyclical leverage ratio, is incompatible with the Kaleckian analysis of profits endorsed by Minsky. Therefore we suggest replacing the assumption of a pro-cyclical leverage ratio with one of a pro-cyclical short-term borrowing, which also appears in Minsky’s work.https://journals.openedition.org/regulation/10963Minskyfinancial crisesStock-Flow models |
spellingShingle | Tarik Mouakil A “Minsky crisis” in a Stock-Flow Consistent model Revue de la Régulation Minsky financial crises Stock-Flow models |
title | A “Minsky crisis” in a Stock-Flow Consistent model |
title_full | A “Minsky crisis” in a Stock-Flow Consistent model |
title_fullStr | A “Minsky crisis” in a Stock-Flow Consistent model |
title_full_unstemmed | A “Minsky crisis” in a Stock-Flow Consistent model |
title_short | A “Minsky crisis” in a Stock-Flow Consistent model |
title_sort | minsky crisis in a stock flow consistent model |
topic | Minsky financial crises Stock-Flow models |
url | https://journals.openedition.org/regulation/10963 |
work_keys_str_mv | AT tarikmouakil aminskycrisisinastockflowconsistentmodel AT tarikmouakil minskycrisisinastockflowconsistentmodel |