financialisation to the macroeconomy: first, the effect on income distribution, second, the effects on investment in capital stock … income at the expense of the labour income share and depressed investment in capital stock, each a major feature of …

In this paper we present a theory of the financing of investment in a modern capitalist economy, following the approach … hypothesis that relegates money and finance to the sidelines. Minsky vehemently denied the relevance of such a theory, at least … used to finance positions in assets is of critical importance, both for theory and for real-world outcomes. In the first …

We present a theory in which limited risk sharing of idiosyncratic labor income risk plays a key role in determining … the dynamics of interest rates. Our production-based model relates the crosssectional distribution of labor income risk to … observable aggregate labor market variables. Our model makes two key predictions. First, it predicts positive risk premia for …

equity capital to the risk-free interest rate. When equity capital falls, bankruptcy risks rise. Firms become more vulnerable …