Although Hyman Minsky’s version of John Maynard Keynes’s economics had a minimal impact on the mainstream during his own lifetime and in the years following, its central insights remain as relevant as ever. Both men understood that economic theory cannot get away with ignoring the fact of uncertainty.
CAMBRIDGE—Consideration of economic and financial conditions today calls to mind the economic theorists who most influenced my own thinking, as an academic and as a venture capitalist: John Maynard Keynes and Hyman Minsky. Their relationship, though virtual, is essential. It was Minsky who revealed the profound conflict between “the economics of Keynes” and the “Keynesian economics” that dominated the teaching and practice of macroeconomics for at least a generation, and which remains embedded in contemporary “New Keynesian” models of the economy.
CAMBRIDGE—Consideration of economic and financial conditions today calls to mind the economic theorists who most influenced my own thinking, as an academic and as a venture capitalist: John Maynard Keynes and Hyman Minsky. Their relationship, though virtual, is essential. It was Minsky who revealed the profound conflict between “the economics of Keynes” and the “Keynesian economics” that dominated the teaching and practice of macroeconomics for at least a generation, and which remains embedded in contemporary “New Keynesian” models of the economy.