Re: [OPE] L. Randall Wray: Financial Instability

From: Dave Zachariah <>
Date: Sat Oct 11 2008 - 07:26:59 EDT

on 2008-10-11 13:05 Patrick Bond wrote:
> Or to be more precise, of Minskyian theories. I hope we can quickly
> get beyond these, since as Wray confesses, they are not rooted in the
> real sector

This theory is surely not disconnected from the real sector: it is based
on the income flows of firms and how the assessed margins of safety are
reduced during an economic boom. Thus there is a structural tendency for
financial instability in the very operation of a market based economy
with rentiers. I think this is a reasonable theory with some testable

On what basis should one *postulate* a deeper ("root") cause than this?

//Dave Z
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Received on Sat Oct 11 07:29:30 2008

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