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...
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| Format: | Article |
| Language: | English |
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Association Recherche & Régulation
2014-12-01
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| Series: | Revue de la Régulation |
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| Online Access: | https://journals.openedition.org/regulation/10963 |
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| _version_ | 1832577991014612992 |
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| 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 |