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Theories devised by keynes and Minsky are similar in concept since Minsky himself was a post-
Keynesian. He supported quite much of Keynes' theories and rather contributed to the
economics of financial markets by providing theories on why such markets fail and how they
recover. So they are a more advanced extension of Keynes' theory to explain the behaviour of
financial markets and how they influence the overall economy.
For understanding the similarities between the two theories, we need to look at some of their
main points in brief, without going into detail and then compare them on where they stood
unique shared the same concept. Since nearly very business cycle theory explains through some
common points, their mode can be different, for Keynes' theory explained business cycle on a
macro economic scale while Minsky's was more market related. Some of the main key points
for Keynes' and Minsky's theories are listed down below.
Keynes' theory of business cycles
Minsky, as I already told, was a Keynesian himself and all his theories have been always been an
extension of Keynesian concepts to explain the economics of today. His most valuable thesis on
the workings of financial markets why they fail becasue of fluctuations is a Kynesian modifed
concept.
Minsky proposed his theory in pure financial terminology. His point was that during propserity
when cash flows are maximum to pay off the debts, the resulting euphoria that develops into
society results in a debt crises that the borrowers are unable to pay. This leads to banks
restructing money supply which in the end contracts the whole economy.
Solution
Theories devised by keynes and Minsky are similar in concept since Minsky himself was a post-
Keynesian. He supported quite much of Keynes' theories and rather contributed to the
economics of financial markets by providing theories on why such markets fail and how they
recover. So they are a more advanced extension of Keynes' theory to explain the behaviour of
financial markets and how they influence the overall economy.
For understanding the similarities between the two theories, we need to look at some of their
main points in brief, without going into detail and then compare them on where they stood
unique shared the same concept. Since nearly very business cycle theory explains through some
common points, their mode can be different, for Keynes' theory explained business cycle on a
macro economic scale while Minsky's was more market related. Some of the main key points
for Keynes' and Minsky's theories are listed down below.
Keynes' theory of business cycles
Minsky, as I already told, was a Keynesian himself and all his theories have been always been an
extension of Keynesian concepts to explain the economics of today. His most valuable thesis on
the workings of financial markets why they fail becasue of fluctuations is a Kynesian modifed
concept.
Minsky proposed his theory in pure financial terminology. His point was that during propserity
when cash flows are maximum to pay off the debts, the resulting euphoria that develops into
society results in a debt crises that the borrowers are unable to pay. This leads to banks
restructing money supply which in the end contracts the whole economy.

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Theories devised by keynes and Minsky are similar in concept since M.pdf

  • 1. Theories devised by keynes and Minsky are similar in concept since Minsky himself was a post- Keynesian. He supported quite much of Keynes' theories and rather contributed to the economics of financial markets by providing theories on why such markets fail and how they recover. So they are a more advanced extension of Keynes' theory to explain the behaviour of financial markets and how they influence the overall economy. For understanding the similarities between the two theories, we need to look at some of their main points in brief, without going into detail and then compare them on where they stood unique shared the same concept. Since nearly very business cycle theory explains through some common points, their mode can be different, for Keynes' theory explained business cycle on a macro economic scale while Minsky's was more market related. Some of the main key points for Keynes' and Minsky's theories are listed down below. Keynes' theory of business cycles Minsky, as I already told, was a Keynesian himself and all his theories have been always been an extension of Keynesian concepts to explain the economics of today. His most valuable thesis on the workings of financial markets why they fail becasue of fluctuations is a Kynesian modifed concept. Minsky proposed his theory in pure financial terminology. His point was that during propserity when cash flows are maximum to pay off the debts, the resulting euphoria that develops into society results in a debt crises that the borrowers are unable to pay. This leads to banks restructing money supply which in the end contracts the whole economy. Solution Theories devised by keynes and Minsky are similar in concept since Minsky himself was a post- Keynesian. He supported quite much of Keynes' theories and rather contributed to the economics of financial markets by providing theories on why such markets fail and how they recover. So they are a more advanced extension of Keynes' theory to explain the behaviour of financial markets and how they influence the overall economy. For understanding the similarities between the two theories, we need to look at some of their main points in brief, without going into detail and then compare them on where they stood unique shared the same concept. Since nearly very business cycle theory explains through some common points, their mode can be different, for Keynes' theory explained business cycle on a macro economic scale while Minsky's was more market related. Some of the main key points for Keynes' and Minsky's theories are listed down below. Keynes' theory of business cycles
  • 2. Minsky, as I already told, was a Keynesian himself and all his theories have been always been an extension of Keynesian concepts to explain the economics of today. His most valuable thesis on the workings of financial markets why they fail becasue of fluctuations is a Kynesian modifed concept. Minsky proposed his theory in pure financial terminology. His point was that during propserity when cash flows are maximum to pay off the debts, the resulting euphoria that develops into society results in a debt crises that the borrowers are unable to pay. This leads to banks restructing money supply which in the end contracts the whole economy.