This unique volume presents, for the first time in publication, the original Ph.D. thesis of Hyman P. Minsky, one of the most innovative thinkers on financial markets. Dimitri B. Papadimitriou's introduction places the thesis in a modern context, and explains its relevance today. The thesis explores the relationship between induced investment, the constraints of financing investment, market structure, and the determinants of aggregate demand and business cycle performance. Forming the basis of his subsequent development of financial Keynesianism and his "Wall Street" paradigm, Hyman Minsky investigates the relevance of the accelerator-multiplier models of investment to individual firm behaviour in undertaking investment dependent on cost structure. Uncertainty, the coexistence of other market structures, and the behaviour of the monetary system are also explored.
Originally presented as the author's doctoral thesis.
Bibliography, etc. Note
Includes bibliographical references and index.
Formatted Contents Note
Introduction: The financial fragility hypothesis: the offspring of 'Induced investment and business cycles' / Dimitri B. Papadimitriou The analysis of business cycles: the problem and the approach Some accelerator-multiplier models The generation of the accelerator coefficient The theory of the firm in relation to business cycle theory Cost curves and investment The survival of firms Market constraints upon firms: vulnerability The effect of market structure upon induced investment Monetary behavior and induced investment Conclusion: business cycle theory and economic policy.