Minsky on “Big Government”
Brazilian Journal of Political Economy, Vol. 34 No. 1 (2014), Jan-Mar / 2014, Pages 15-38
This paper objective is to assess, in light of the main works of Minsky, his view and analysis of what he called the “Big Government” as that huge institution which, in parallels with the “Big Bank” was capable of ensuring stability in the capitalist system and regulate its inherently unstable financial system in mid-20th century. In this work, we analyze how Minsky proposes an active role for the government in a complex economic system flawed by financial instability.
JEL Classification: E02; E12; E62; H63.
Keywords: Government deficit fiscal policy financial instability hypothesis unemployment employer of last resort