[lbo-talk] Minsky moments

Doug Henwood dhenwood at panix.com
Sun Aug 26 20:08:25 PDT 2007


On Aug 25, 2007, at 11:08 PM, Mike Beggs wrote:


> Steve Keen (an Australian economist who's very in to
> Minsky) tells me Minsky knew his Marx well but deliberately
> censored him
> from his work because of the anticommunism of the 1950s when Minsky's
> career was getting underway.

Minsky was friendly with one of the anticommunist goons - Jay Lovestone maybe? I think he did some work along those lines in Europe after the war.


> As I've argued before I think this popular version of Minsky is one-
> sided.
> For Minsky the point was not that financial crisis was inevitable, but
> that advanced capitalist governments had developed mechanisms to
> counteract them.

Yeah, but there's the contradiction - that stability is destabilizing. Bailouts encourage risk-taking. I have to dig "Debt Deflation in the Modern Institutional Environment" out of storage.

Doug



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