As Daniel Neilson describes in this crucial introduction, this is what occupied the mind of the iconoclast economist Hyman Minsky. Rather than a standard academic overview, Neilson’s book is more biographical. He situates Minsky in time and place, exploring a thinker who was forever responding to events around him....
By narrating Minsky’s theoretical developments in their historical context, Neilson introduces with clarity a body of economic thought that has become very influential in the last decade. The focus on central banks, debates about MMT, and the way terms like ‘collateral’ and ‘liquidity’ have become so commonplace in public economic discourse today is testament to Minsky’s focus on the problem of payment.
Though Minsky saw himself as building on Keynes’s legacy, Neilson shows how it was in fact the influence of Joseph Schumpeter, who supervised Minsky’s PhD work, that was maybe more important. Like Minsky, Schumpeter was interested in how the way credit cycles drove cycles in the real economy, rather than the reverse.
While that may seem obvious it runs counter to orthodoxy....
1 comment:
"the apex creates the nadir!"... Minsky is about as dumb as you can get...
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