Skip to main content

Keynes vs Minsky

I am a beginner in economics but reading Positive Money book 'Modernising Money' by Ben Dyson and Andrew Jackson. My interest grew in the work of Minsky and encouraged me to read more about Keynes.

Keynes economics promote the view that in the long run economics system converge into an equilibrium with the support of the government. Nevertheless you cannot help the role of banks in the system and wonder after reading the following quote:

“But this long run is a misleading guide to current affairs. In the long run we are all dead. Economists set themselves too easy, too useless a task if in tempestuous seasons they can only tell us that when the storm is long past the ocean is flat again.” (Keynes, 1923)

This imply that economists did not comprehend why we had a financial crisis and collapse. Minsky with  his model 'Financial Instability Hypothesis' strive to answer this question. The idea in Minsky's work in a 'simplistic summary is that in very good environments economic decision will be made with an overconfidence of financial stability. Ultimately it motivate excess leverage that advance farther than a stable economy' (Coates, 2009)

We could summarize the whole in three words 

'STABILITY IS DESTABILISING'

Some links:



Comments

Popular posts from this blog

Blacklist

It may be time to create a blacklist of companies to avoid and definitely refuse to  work for: - Those which are more than 3 miles than my home - Those which does not allow me to work from home - Those which does not allow me to work fewer hours - Those which pollute with no sorry - Those with negative employee reviews - Those which do not design products that are repairable - Those which do not put the wellbeing of their staff first what else, add to the list

Missminimalist , Thank you

I was hooked to missminimalist blogs in the past four days, reading approximately 16 pages of individuals testimonies on how they started and enjoyed their minimalist journey. It opened my eyes on the endless minimalist lifestyles that any of us can implement. I admire the traveller, the spiritualist, the true materialist (as opposed to consumerist), the mindful, the artist, the mum, the dad, the designer who with intention choose to keep the things that add value to his/her life and get rid of the frivolous. Beyond just getting rid of things, there is not participating to our current wasteful society, it is recognising that we are all equal regardless of what we own and finally it is embracing freedom. It is why I love it. I encourage you to have a read/rid, I hope it will inspire you:  http://www.missminimalist.com/

How to build Integrity?

1. fulfil your promises 2. keep appointments 3.  Before you make a commitment, stop and make sure you can follow through on that commitment 4. get comfortable with saying no. 5.  Pay attention to that feeling of internal discord when you are out of alignment with your goals and beliefs 6.  Get super honest and authentic with yourself.    Then learn to communicate it to others 7. Consider the habits and skills you need to develop to enhance your integrity 8. Avoid people who lack integrity