Teaching Minsky's financial instability hypothesis: a manageable suggestion

Abstract

For more than 20 years, Post Keynesian contributions, based on the work of Hyman Minsky, have been flourishing. However, these models are often extremely sophisticated, involving numerical simulations to obtain precise results. Thus, the main purpose of this paper is to propose an introductory and analytically tractable model of accumulation and debt, which integrates several Minskyan ideas such as endogenous interest rate and financial fragility.

Keywords:

• accumulation
• debt
• instability
• Minsky