Abba Lerner’s Functional Finance and Hyman Minsky’s Financial Instability: How to Stabilize Unstable Capitalism?

Key Points

• Financial instability poses challenges for capitalism, necessitating effective stabilization policies.
• Key theories from Abba Lerner and Hyman Minsky provide insights on mitigating economic fluctuations.
• Assessment of economic models highlights the importance of adaptive fiscal strategies.
• Exploring these theories can lead to a more resilient economic framework for future challenges.

Abstract