Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/277255 
Year of Publication: 
2013
Citation: 
[Journal:] European Journal of Economics and Economic Policies: Intervention (EJEEP) [ISSN:] 2052-7772 [Volume:] 10 [Issue:] 1 [Year:] 2013 [Pages:] 28-43
Publisher: 
Edward Elgar Publishing, Cheltenham
Abstract: 
The purpose of this paper is to provide an exposition of Veblen's and Minsky's views on the financial markets and to explore the possibility of any common denominators. I stress that they both bring forward the importance of leverage as a path-breaking insight, as well as of liquidity and solvency in the real-world financial markets characterized by uncertainty, innovations and evolving institutions. I remark that Veblenian and Minskian financial markets are naturally and endogenously unstable, nonneutral and influence 'real' economic performance. I argue that if Veblen's institutional logic in his business enterprise system became integrated with Minsky's financial processes of creation and destruction, it could set up a realistic framework to analyse the evolution of financial markets in capitalism.
Subjects: 
financial markets
Veblen
Minsky
leverage
liquidity
financial instability
financial crisis
JEL: 
A20
B15
B25
B52
E12
E44
G3
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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