{"id":2388,"date":"2011-11-04T13:44:48","date_gmt":"2011-11-04T17:44:48","guid":{"rendered":"http:\/\/www.multiplier-effect.org\/?p=2388"},"modified":"2011-11-04T14:59:15","modified_gmt":"2011-11-04T18:59:15","slug":"minsky-goggles","status":"publish","type":"post","link":"https:\/\/blogs.bard.edu\/multiplier-effect\/minsky-goggles\/","title":{"rendered":"Minsky Goggles"},"content":{"rendered":"<p>&#8220;If you&#8217;re going to have a model of capitalism, your model must be able to generate a Depression as one of its potential states. &#8230;if you can&#8217;t model that, you&#8217;re not modeling capitalism.&#8221;<\/p>\n<p>Via the <a href=\"http:\/\/ineteconomics.org\/blog\/inet\/steve-keen-how-he-saw-it-coming\">Institute for New Economic Thinking<\/a>, Steve Keen explains how Minsky&#8217;s work played a foundational role in helping him to see the financial crisis coming:<\/p>\n<p><iframe loading=\"lazy\" src=\"http:\/\/ineteconomics.org\/ivideo?v=P3u8lB1SPcw&amp;size=medium\" width=\"400\" height=\"224\"><\/iframe><\/p>\n<p>Later in the video, Keen starts talking about the &#8220;holy hell!&#8221; moment he had in 2005 when looking at private debt-to-GDP ratios (Keen notes the central role private debt plays in Minsky&#8217;s theory).<\/p>\n<p>This (from Randall Wray&#8217;s Minsky-inspired <a href=\"http:\/\/www.levyinstitute.org\/publications\/?docid=1421\">policy brief<\/a>) is the sort of thing he would have been seeing:<\/p>\n<p><a href=\"http:\/\/blogs.bard.edu\/multiplier-effect\/files\/2011\/11\/Fig1_Financial-Liabilities-Relative-to-GDP.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-2393\" title=\"Fig1_Financial Liabilities Relative to GDP\" src=\"http:\/\/blogs.bard.edu\/multiplier-effect\/files\/2011\/11\/Fig1_Financial-Liabilities-Relative-to-GDP.png\" alt=\"\" width=\"422\" height=\"378\" srcset=\"https:\/\/blogs.bard.edu\/multiplier-effect\/files\/2011\/11\/Fig1_Financial-Liabilities-Relative-to-GDP.png 528w, https:\/\/blogs.bard.edu\/multiplier-effect\/files\/2011\/11\/Fig1_Financial-Liabilities-Relative-to-GDP-300x268.png 300w\" sizes=\"auto, (max-width: 422px) 100vw, 422px\" \/><\/a><\/p>\n<p><em>Sources<\/em>: Census Bureau; National Income and Product Accounts<br \/>\n(NIPA); Federal Reserve Flow of Funds Accounts (from 1945)<\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;If you&#8217;re going to have a model of capitalism, your model must be able to generate a Depression as one of its potential states. &#8230;if you can&#8217;t model that, you&#8217;re not modeling capitalism.&#8221; Via the Institute for New Economic Thinking, Steve Keen explains how Minsky&#8217;s work played a foundational role in helping him to see [&hellip;]<\/p>\n","protected":false},"author":202,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[],"class_list":["post-2388","post","type-post","status-publish","format-standard","hentry","category-financial-crisis"],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/blogs.bard.edu\/multiplier-effect\/wp-json\/wp\/v2\/posts\/2388","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.bard.edu\/multiplier-effect\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blogs.bard.edu\/multiplier-effect\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.bard.edu\/multiplier-effect\/wp-json\/wp\/v2\/users\/202"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.bard.edu\/multiplier-effect\/wp-json\/wp\/v2\/comments?post=2388"}],"version-history":[{"count":10,"href":"https:\/\/blogs.bard.edu\/multiplier-effect\/wp-json\/wp\/v2\/posts\/2388\/revisions"}],"predecessor-version":[{"id":2396,"href":"https:\/\/blogs.bard.edu\/multiplier-effect\/wp-json\/wp\/v2\/posts\/2388\/revisions\/2396"}],"wp:attachment":[{"href":"https:\/\/blogs.bard.edu\/multiplier-effect\/wp-json\/wp\/v2\/media?parent=2388"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blogs.bard.edu\/multiplier-effect\/wp-json\/wp\/v2\/categories?post=2388"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blogs.bard.edu\/multiplier-effect\/wp-json\/wp\/v2\/tags?post=2388"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}