In the crises of 1980s, ever-increasing current account deficits, fueled by unsustainable economic expansions, were invariably the main cause of rising devaluation risk that eventually led to the reversal of capital flows. By contrast, in the 1990s, considerations of financial fragility and...

Roy Harrod had always maintained that John Maynard Keynes's Treatise was much more amenable for dynamic analysis than The General Theory. However, in much of the later work on Keynesian dynamics, The General Theory became the foundation. In this paper, the author argues that recent developments...

Despite his emphasis on the speculative character of investment decisions, Minsky paid little attention to asset price speculation per se, ignoring asset price bubbles and their macroeconomic effects. That is perhaps because his views were formed during the era of financial regulation, when...