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Richmond upon Thames Liberal Democrats:Covering the constituencies of Twickenham and Richmond Park |
Karl Marx to John Maynard Keynes: Ten of the greatest economists by Vince Cable
July 22, 2011 10:40 AM
• [Jul 16] Vince Cable and York Membery write: ' . . 10. HYMAN Minsky (1919-1996): The Western world has been painfully reminded over the past three years of the way capitalist economies - especially their banks - can be caught in speculative financial bubbles which burst with disastrous effects. The South Sea Bubble (which saw shares in an 18th-century British company soar before crashing) was an early example of such an event.
The philosopher John Stuart Mill wrote about cycles leading to bank collapses and ensuing 'credit crunches' in the 19th century - and Minsky was the best analyst of the problem in recent times. Sometimes described as a post-Keynesian economist (because he supports some government intervention), the American described with uncanny accuracy the seven stages of a boom and bust cycle which we have now seen enacted in our own country.
The Coalition Government is now seeking to manage the consequences and to stop another Minsky cycle developing.
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