A Simplified Stock-flow Consistent Dynamic Model Of The Systemic Financial Fragility In The 'New Capitalism'

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In the last few years, many financial analysts and heterodox economists (but even some 'Dissenters' among orthodox economists) have referred to the contribution of Hyman P. Minsky as fundamental to understanding the current crisis. However, it is well-known that the traditional formulation of Minsky's 'Financial instability hypothesis' shows serious internal logical problems. Furthermore, Minsky's analysis of capitalism must be updated on the basis of the deep changes which, during the last three decades, have concerned the world economy.