Macroeconomic Dynamics and Energy In Minsky

Poznan Summer School 2022

6

In this video, I cover complexity, which is why macroeconomics cannot be derived from microeconomics; the alternative and much simpler macrofoundations of macroeconomics; how Minsky's Financial Instability Hypothesis drops out naturally from the three key definitions--the employment rate, the wages share of GDP, and the private debt to GDP ratio; then how Neoclassical economics can't integrate energy into its production function without destroying their theory of income distribution; how all Post Keynesians have to to is treat the "capital output ratio" as the inverse of the efficiency with which machines turn energy into useful work; and two models of production, one with energy and the other with energy and matter.