Minsky on the management of capitalism


Hyman Minsky

The late Hyman Minsky, whose ideas on financial crises have seen a revival during the recent turmoil, writing in 1975:

“In order to understand the policy issues confronting advanced capitalist countries today it is necessary to return to the issues that were central to the fundamental debate that took place in the 1930s on the relative merits of capitalism and socialism. If one comes down, as Keynes did, on the side of a mixture that sustains the basic properties of capitalism, it is not because of the virtues of unconstrained capitalism but rather in spite of its defects, which, though great, can in principle be controlled. But if capitalism is to be controlled so that the basic triad of efficiency, justice, and liberty is achieved, then the design of the controls will have to be enlightened by an awareness of what was obvious to Keynes – that with regard to both the stability of employment and the distribution of income, capitalism is flawed.”

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