[ Read Online John Maynard Keynes Ø holocaust PDF ] by Hyman P. Minsky Þ treatmentinlithuania.co.uk

[ Read Online John Maynard Keynes Ø holocaust PDF ] by Hyman P. Minsky Þ Today, Mr Minsky S View Of Economics Is Relevant Than Ever The New York Times Indeed, The Minsky Moment Has Become A Fashionable Catch Phrase On Wall Street The Wall Street Journal John Maynard Keynes Offers A Timely Reconsideration Of The Work Of The Revered Economics Icon Hyman Minsky Argues That What Most Economists Consider Keynesian Economics Is At Odds With The Major Points Of Keynes S The General Theory Of Employment, Interest, And Money Keynes And Minsky Refuse To Ignore Pervasive Uncertainty Once Uncertainty Is Given Center Stage, Recurring Episodes Of Financial System Crises Are All But Inescapable As Robert Barbera Notes In A New Preface, Benign Economic Circumstancesinvite Increasingly Aggressive Financial Market Wagers Innovation In Finance Is A Signature Development In A Capitalist Economy Once Leveraged Wagers Are In Place, Small Disappointments Can Have Exaggerated Consequences Thus For Minsky Economic Calm On Main Street Engenders Financial System Fragility Which, In Turn, Ensures A Perpetuation Of Boom And Bust CyclesMinsky Colleagues Dimitri B Papadimitriou And L Randall Wray Write In A New Introduction, We Offer This New Edition, In The Hope That It Will Contribute To The Reformation Of Economic Theory So That It Can Address The World In Which We Actually Live The World That Was Always The Topic Of Minsky S Analysis keynes, like adam smith, is another classic economist who is very influential but is never actually read minsky, writing in the 70s during or slightly after, i cant remember the first sustained post war recession which threw keynesian economics into turmoil, reveals that the real keynes would have anticipated the downturn and made policy recommendations that bore little resemblance to what his alleged disciples were making minsky s keynes, which is assembled through a series of careful quotes from The General Theory, long graph heavy explications of firm and household cost curves, and some important original corrections by minksy himself, emerges as a non marxist critic of capitalism, and, like marx, another theorist who is unconcerned with capitalist equilibrium because he doesn t believe it can ever exist keynes disequilibrium, however, doesn t come out of exploitation necessarily but investment decisions which are affected by the psychology and the assessments of individuals and firms in the market for keynes, these assessments, and the prices that result from them, are almost never correct in boom times and in times of heavy debt deflation, the prices that are supposedly rational and formed by orderly competition in the market are actually wildly, dangerously inaccurate, and lead to either further immiseration or further wild, dangerous speculation the actions of a reasonable government are required to bring the markets into line ultimately keynes, who self described as a man of the left, recommended the socialization of investment and the euthanasia of the rentier, which he thought would be natural processes arising from capital goods becoming gradually less and less scarce the last chapter of minsky s book focuses on the philosophical and political keynes and reveals his immense distance from nearly everyone who claims to be inspired by him i m still a marxist, but i appreciate keynes and minsky for their detailed explanation of how wrong and insane the price system is i think the politics keynes pursued, that of gradual socialism with markets and basic respect for entrepreneurs, is ultimately far utopian than marxism leninism minsky attempts, in the last chapter, to rescue some of the utopian keynes by claiming that some of his predictions, like that government intervention in the economy would reduce conflict between nations, actually came true of course he ignores the shift from european nations fighting one another for access to colonial markets to european nations banding together to attempt to dominate the rest of the planet for their common benefit marxists are obviously much better on this sort of thing but i enjoyed reading this and think that a lot of it, as far as it goes, is correct and pretty useful it also has basically nothing to do with Keynesianism as Mankiw and DeLong interpret it.


I probably didn t appreciate this book as much as I would have had I the technical competence to fully follow the economic theorising, but here are 3 things I did get out of this book 1 Consumption is important Even though Consumption is a derivative of employment, which is a derivative of Investment, and therefore it is Investment that Keynes believed is the driver of the economy, Consumption is still important This is b c Consumption is a major part of Aggregate Demand, and it is entrepreneur s and bankers expectations of Aggregate Demand that determine the perceived Return on Investment and Cost of Capital, which is what drives Investment and Employment It is necessarily circular, but his point is that it begins with Consumption I disagree with this in the sense that I think the origin of wealth creation in an economy is necessarily extrinsic i.
e ultimately all wealth originates from land resources and all economic activity is a multiplier on that initial exogenous input but I agree in the sense that I think Consumption is the biggest contributor to and starting point of that economic multiplier 2 It is a great summary of what Minsky thinks is wrong with neoclassical economics Again I don t pretend to completely follow, but I think these are the fundamental points i the neoclassicists omit consideration of the actual level of employment from their models by exogenously assuming that labor will always be employed up to where wages marginal productivity ii that debt is a burden on society, and that b c in a cyclical downturn, as the interest burden does not fall, firms have to take on debt to refinance previous debt, thus a society s debt level can build up over the course of several cycles and lead to growing financial instability, and that this cyclical instability is an intrinsic characteristic of modern capitalistic markets and economic models should reflect this reality, instead of assuming that economies always tend toward stable equilibrium and that cycles are merely the result of external shocks and rebalancing.
I wish I had time to jot down fuller notes, but unfortunately not for now It really does bear closer rereading to appreciate though.
3 An unexpected last chapter that highlights Keynes idealistic, socialist tendencies, and what he believed economies should tend toward, the euthanasia of the rentier Essentially, this is when an economy reaches maturity, consumers leave aside purely monetary pursuits and move on to non economic pleasures, all material wants are satisfied and people seek to gratify non material wants, so capital for production of material goods is no longer scarce I find the last rather compelling, a vision of a Socratic society Naturally it contradicts economist s assumption of infinite wants, but Keynes point here is that people move up the hierarchy of needs to non material, philosophic spiritual artistic pursuits This, Minsky writes, reflects that Keynes was a young man during the Edwardian enlightenment, an optimistic era when the intellectual constraints and social hypocrisies of the Victorian era were being cast off, and genuine progress toward an egalitarian and open society seemed assured Something to keep in mind when we apply Keynesian economic analysis to the millions billions gazillions of present and future Asian conspicuous consumers.
In this text Minsky analyzes why the Neo classical synthesis should be rejected and does not represent a outgrowth of Keynes work in The General Theory of Employment, Interest, and Money Minsky also firmly plants Keynes and himself in the tradition of Marx and the socialist position of the inherent instability of the capitalist system Like Keynes, Minsky came to see Smith s and Marx analysis of the speculative financial capital nature of Capitalism as destabilizing to the overall system and making market equilibrium a momentary and transitory state of existence.
Central to Minsky s analysis is the false equalization by financial theory of risk to uncertainty in advance capitalist economies This speculatively expansion and contraction by market participants leads to the cyclical and financial instability in the system unveiled by Keynes In his conclusion from 1975 Minsky emphasizes that the use of a trickle downward perspective in policy will result in a distortion of Keynesian tools for the socialization of investment risk over the social safety net by government, a prediction that the Great Recession, the Savings and Loan Crisis, and the Long Term Capital Management Bailout have illustrated in the experimental economical laboratory we know as reality Minsky concludes with the following statement But if capitalism is to be controlled so that the basic triad of efficiency, justice, and liberty is achieved, then the design of the controls will have to be enlightened by an awareness of what was obvious to Keynes that with regard to both the stability of employment and the distribution of income, capitalism is flawed A short and seminal read on the dynamics of financial markets and capital flows in our complex global economy.