Minsky's ‘Induced Investment and Business Cycles’

Abstract:     
This paper reviews the recently published PhD thesis of Hyman P. Minsky, summarising its main contributions to methodology and microeconomics. These are aspects of economics with which Minsky is not usually associated, but which lie at the foundation of his later work. They include critical remarks on Cambridge economics. The paper then draws out some antecedents of Minsky's ideas in the work of Henry Simons, and highlights the Marshallian monetary analysis that he adopted. It is argued that this analysis is incompatible with the Kaleckian theory of profits that Minsky was later to adopt.

Keywords: Minsky, Kalecki, Schumpeter, Money, Microeconomics, Methodology

JEL Classification: B22, D2, E12, E50

Accepted Paper Series