economic globalisation

P8475423 at vmsuser.acsu.unsw.EDU.AU P8475423 at vmsuser.acsu.unsw.EDU.AU
Wed Aug 23 16:30:46 MDT 1995

John Wilson noted that:
I find the relationship between Marx and Minsky to be very interesting.
and that he'd like some reading suggestions.

On Minsky's thesis, 2 recommendations: the book _Can "It" Happen
Again_, which Rakesh has purchased (I hope it cost you less than
it cost me in Oz, Rakesh!); and my recent paper, "Finance and
Economic Breakdown: Modelling Minsky's Financial Instability
Hypothesis", in the Journal of Post Keynesian Economics, Summer
1995, Vol. 17, No. 4, p. 607-635.

I think the latter does a good job of summarising Minsky -:),
but as one who is very critical of 2nd hand impressions of
(Marx and) anything, I'd recommend reading several chapters of
Minsky's book, as well. Rakesh probably has his favorite chapters
too by now; my suggestions would be the very pithy Preface, the
Introduction, and Chapter 5 (Ch. 4 should also be perused for
what has become known as the "Minsky Diagram").

As for the Marx-Minsky link, 3 recommendations:

* The original again. Take a careful look at Capital III, pp.
338-361, 420-441; Theories of Surplus Value, III, pp. 453-471
(Chs 21-22, 26 of Capital III; Addenda 1.3 of TSV III, for
those not using the Progress Press editions).

(Apropos of John Ernst's criticisms of Minsky for focusing on
the financial side rather than production, the following is
the manner in which Marx gives primary importance to finance
for cycles, but manages to link it to production nonetheless):

"The credit system appears as the main lever of
over-production and over-speculation in commerce solely because
the reproduction process, which is elastic by nature, is here
the reproduction process, which is elastic by nature, is here
forced to its extreme limits." (Capital III, p. 441.)

* To follow Marx's logic in these sections (which makes heavy
use of the use-value/exchange-value dialectic), you *might*
find it useful to read my "Use-value, exchange-value and
the demise of Marx's labor theory of value", Journal of
the History of Economic Thought, Vol. 15. No. 1, pp. 107-121.
But I emphasise *might*; it could sidetrack you into arguing
with Ahab about the LTV, and that's a side issue here.

* A paper I have posted to the gopher/www
site, "A Marx for Post Keynesians", in the subdirectory
econ/authors/Keen.Steve; again, that has the potential to
sidetrack, but I go into some detail on Marx's logic and
how Minsky's FIH can be derived from it there. I am also
going to post a paper tentatively entitled "Financial
Instability: Minsky, Marx and Chaos" to the same site (in
postscript format; the former paper is in text). It won't
get you involved in the sidetrack, but it is rather more
populist in style, and has less detail on Marx.

Steve Keen

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