Induced Investment and Business Cycles
Induced Investment and Business Cycles is the doctoral thesis done by one of the most innovative thinkers on financial markets – Hyman P. Minsky. The paper draws out some antecedents of Minsky’s ideas in the work of Henry Simons, highlights the Marshallian monetary analysis that he adopted, and includes critical remarks on Cambridge economics. The thesis also tackles the relationship between induced investment, constraints of financing investment, market structure, and determinants of aggregate demand and business cycle performance. Minsky investigates the relevance of the accelerator-multiplier models of investment to individual firm behavior in undertaking investment dependent on cost structure.
Induced Investment and Business Cycles Contents
- Introduction: The Financial Fragility Hypothesis: The Offspring of ‘Induced Investment and Business Cycles’
- The Analysis of Business Cycles: The Problem and the Approach
- Some Accelerator–Multiplier Models
- The Generation of the Accelerator Coefficient
- The Theory of the Firm in Relation to Business Cycle Theory
- Cost Curves and Investment
- The Survival of Firms
- Market Constraints Upon Firms: Vulnerability
- The Effect of Market Structure Upon Induced Investment
- Monetary Behavior and Induced Investment
- Conclusion: Business eory and Economic Policy References Index