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Fisher on Debt Deflation – Social Democracy for the 21st Century

“The Debt- Deflation Theory of Great Depressions,” Econometrica 1.4: 337–357. Raines, J. Patrick and Charles G. Leathers. 2008. Debt, Innovations, and Deflation : The Theories of Veblen, Fisher, Schumpeter and Minsky [...]

Steve Keen on Schumpeter, Minsky and Endogenous Money

Steve Keen on Schumpeter, Minsky and Endogenous Money. A great audio talk here by Steve Keen, recently given in New Zealand (in Wellington on 10th September, 2012, if I am not mistaken), on debt deflation , Schumpeter … [...]

Steve Keen on Hyman Minsky – Social Democracy for the 21st Century

Steve Keen on Hyman Minsky . Steve Keen is interviewed in a “From Alpha to Omega” podcast I have posted below, in which the conversation includes the idea of a debt jubilee and Hyman Minsky's work. The interview begins … [...]

Effective demand, liquidity traps and debt deflation « Michael …

From that debt deflation (Fisher-style), the liquidity trap and the Keynesian multiplier emerge. And this provides a “rationale for expansionary fiscal policy”. Krugman called it a Fisher- Minsky ,Koo approach to the crisis, although … [...]

An Analysis Of The Article Dynamic Economic Systems By John M …

Running Head:An Analysis of the Article Dynamic Economic Systems by John M. Blatt and the Financial Instability Hypothesis by Hyman Minsky …. on to why speculative finance is valid and private debt is valid during economic stability, He only states that spending by consumers financed by debts when an economy has just recovered from a debt deflation will result into a decline in income but does not given a clear connection of debt deflation and [...]

Krugman versus Keen « Real-World Economics Review Blog

… neoclassical economists are paying some attention to his hypothesis, and there has been at least one attempt to build a New Keynesian model of a key phenomenon in Minsky's hypothesis, a debt- deflation (Krugman and … [...]

Harms of Inflation vs. Benefits of Deflation

When it comes to monetary policy, politicians, economic planners at the Federal Reserve, and public opinion are afraid of entirely the wrong scenario. They pursue a deliberate gradual inflation of the money supply for fear that the opposite tendency — a great deflation might take hold. They allege that deflation is a great calamity, and that mild inflation is a lesser evil or even a preferable policy to follow. The Keynesians among them contend that inflation encourages investment in business enterprises and provides an economic stimulus. [...]

The dangers of deflation, or why Ron Paul and the Austrians are wrong

Long story short: Though a desire for deflation, and a fear of inflation, may have some plausibility at face value, when examined from the perspective of the economy as a whole (and I scarcely doubt that anyone thinks this isn’t what policymakers should be concerned most about), a categorical fear of inflation, and a desire for deflation, aka “a strong dollar,” is entirely wrong-headed. Austrians, including Peter Schiff and Robert P. Murphy, have fallen for this intuitive trap. A sudden drop in prices in the economy will cause sudden, needless unemployment and an idling of scarce resources which have alternative [...]

Debunking Economics | The Sizemore Investment Letter

Paying back proves to be remarkably hard. (Note: Though he is a “Post-Keynesian” economist, Keen makes it clear that that countercyclical Keynesian deficit spending is not going to fix an economic plagued by debt deflation . More on that to come.) [...]

Steve Keen: Economic Progress one Funeral at a Time? (Part 1)

Many modern economists missed the financial crisis and the economic problems we’ve seen since then, such as the eurozone debt crisis. Why? Well according to economics professor and author of Debunking Economics Steve Keen, they’re not really experts on the economy but experts on a model of the [...]