Keynes and Institutional Economics
There has been a lot written about the relationship between the work of John Maynard Keynes and Institutional Economics (IE). Here, I want to specifically look at the work of Hyman Minksy and his view on this question (Joan Robinson who will we talk about later as well). Minsky was a financial and macro economist who took seriously the work of Kenyes. The "Minsky moment" became famous during the 2008 financial crisis, defined as a moment when major financial players realized that everybody was bound up with everybody else and liquidity was drying up everywhere leading to collapse. Minsky actually wrote a book called “ John Maynard Keynes ” in the 1970’s which was re-released in 2008. Minsky had bona fide institutional credibility as a winner of the Commons-Veblen award from the Association of Evolutionary Economics. Minsky writes in the first chapter of his Keynes book that, “ The General Theory , although concerned with the implications of institutional ...