Steve Keen: Crash Course in Non-Equilibrium Economics Lecture 4B
Econintersect: This continues Prof. Keen’s lecture series on non-equilibrium economics with continuation of the discussion of the application of Financial Instability Hypothesis by Hyman Minsky to the work of Richard Goodwin from fixed cycles to a functionally dynamic model. The preceding lecture (4A) introduced the connection of Minsky and Goodwin and showed how conditions of crisis can arise from the resulting model. In this lecture we find the dynamic model also shows periods of notable stability which is the followed by chaos (collapse). We have a model which can produce financial crisis preceded by a “Great Moderation”.
The lectures in this series Econintersect has posted to date: