Abstract

This paper argues that Hyman Minsky's financial instability hypothesis weaves together the medium-term Keynesian dynamic embodied in the Samuelson (1939)— Hicks (1950) approach to the business cycle with the long cycle thinking of economists such as Schumpeter (1939) and Kondratieff. Post Keynesians have devoted considerable attention to the medium-term dimension of Minsky's thinking. The current paper concentrates on the long-swing dimension and introduces the idea of ‘Minsky super-cycles’. It is the super-cycle that ultimately permits financial crisis. Whereas financially driven business cycles occur every decade, financial crises occur over longer durations reflecting the longer phase of the super-cycle.

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