Minsky Models: A Structured Survey

28 Pages Posted: 13 Nov 2017

Date Written: December 2017

Abstract

Minsky's ideas have recently gained prominence in the mainstream as well as in the heterodox literature. However, there exists no agreement upon the formal presentation of Minsky's insights. The aim of this paper is to survey the literature and identify differences and similarities in the ways through which Minskyan ideas have been formalized. We distinguish between the models that focus on the dynamics of debt or interest, with no or a secondary role for asset prices, and the models in which asset prices play a key role in the dynamic behavior of the economy. Within the first category of models, we make a classification between (i) the Kalecki–Minsky models, (ii) the Kaldor–Minsky models, (iii) the Goodwin–Minsky models, (iv) the credit rationing Minsky models, (v) the endogenous target debt ratio Minsky models and (vi) the Minsky–Veblen models. Within the second category of models, we distinguish between (i) the equity price Minsky models and (ii) the real estate price Minsky models. Key limitations of the models and directions for future research are outlined.

Keywords: Business cycles, Debt cycles, Financial instability, Post‐Keynesian economics

Suggested Citation

Nikolaidi, Maria and Stockhammer, Engelbert, Minsky Models: A Structured Survey (December 2017). Journal of Economic Surveys, Vol. 31, Issue 5, pp. 1304-1331, 2017, Available at SSRN: https://ssrn.com/abstract=3069154 or http://dx.doi.org/10.1111/joes.12222

Maria Nikolaidi (Contact Author)

University of Greenwich ( email )

30 Park Row
Greenwich
London, SE10 9LS
United Kingdom

Engelbert Stockhammer

King's College London ( email )

Strand
London, England WC2R 2LS
United Kingdom

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