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Full-Text Articles in Social and Behavioral Sciences
Foreign Savings, Financialization And Minsky: How External Capital Flows Pave The Way For Financial Instability In The Face Of Increasing Risk, Marcus C. Fresques
Foreign Savings, Financialization And Minsky: How External Capital Flows Pave The Way For Financial Instability In The Face Of Increasing Risk, Marcus C. Fresques
Electronic Theses and Dissertations
Minsky's Financial Instability Hypothesis has not come without its fair share of criticism. Much ado about Minsky's endogenous business cycle theory stems from a model where boom-time profit opportunities indelibly encourage firms to finance investment by leveraging their fixed capital assets against their internal liquidity. Opposition to Minsky often points to two distinct circumstances that might discourage the external finance of investment: a rise in effective demand and increasing risk. A rise in effective demand can increase the retained earnings of a firm providing more capital to internally finance investment and investment financed from retained earning is less risky than …
A Critique Of The Neoclassical And A Revision Of The Keynesian Theories Of Employment, Yang Liu
A Critique Of The Neoclassical And A Revision Of The Keynesian Theories Of Employment, Yang Liu
Electronic Theses and Dissertations
The neoclassical theory of employment fails to apply to modern capitalism since it claims that unemployment is necessary all voluntary. Its problems are pointed out by Keynes. But, if we look at Keynes’s system, we find that an essential explanation about why modern capitalism suffers from weak demand is not provided. To answer this question an alternative consumption theory is needed. Levine’s consumption theory well explains the condition of under-consumption. Furthermore, a deep problem of capitalism reveals itself: the production format and the distribution pattern of capitalism result in a huge income discrepancy between the working-class and the capitalist-class and …