Flattr this!

Minsky: Stability is Destabilizing

The Kick­starter cam­paign to raise funds to fur­ther develop “Min­sky”, my dynamic mon­e­tary sim­u­la­tion pro­gram, has been launched. The imme­di­ate objec­tive is to raise $50,000, which will enable the cur­rent ver­sion of Min­sky to be com­pleted. The ulti­mate goal is to raise $1 mil­lion or more to fully develop the con­cept.

Click here for the Kick­starter cam­paign. If you have appre­ci­ated my work over the last seven years to warn about the eco­nomic cri­sis, to develop an approach to macro­eco­nom­ics that can under­stand why it hap­pened, and to develop poli­cies that might help end it, the please show this by mak­ing a pledge.

Let your net­work know about it too. The more peo­ple who kick in, the bet­ter.

Some key facts about Kick­starter cam­paigns:

  • They run only for a set num­ber of days: this cam­paign will end on March 18. If you don’t give by then, you can’t give later. So if you want to help, pledge now.
  • Pledg­ing early is a very good idea. The faster a project reaches its tar­get, gen­er­ally the more it raises–there is a “band­wagon” effect amongst Kick­starters. Also, a fast-ris­ing project tends to get selected by Kick­starter staff as a “Staff Pick”. That gives it more pub­lic­ity and raises yet more funds.
  • Pledg­ing is easy. You choose the amount you want to pledge and click. That takes you to an Ama­zon page where, if you’ve ever bought any­thing from them before­hand, you already have an account. Con­firm the pledge there, and that’s it. If the project gets its tar­get amount of money or more, then at the end of the cam­paign (some time around March 20) the amount you pledge will be trans­ferred to the Min­sky project by Ama­zon (minus about 10% rep­re­sent­ing Ama­zon and Kickstarter’s fees).

I have great hopes for this pro­gram. As a teach­ing tool, I hope it will excite young econ­o­mists and entice them away from the sta­tic, equi­lib­rium-fix­ated, barter model they are cur­rently taught in Uni­ver­si­ties around the world. As a research tool, I hope it will develop in the same way that Lorenz’s model of fluid dynam­ics did, from a “toy” model to the basis of mod­ern weather fore­cast­ing. The eco­nom­ics could never be fore­cast as the weather is, obvi­ously. But explic­itly acknowl­edg­ing the com­plex, mon­e­tary, non-equi­lib­rium nature of the econ­omy has to make for a bet­ter eco­nom­ics.

Help me real­ize those hopes by pro­vid­ing the fund­ing needed to take the pro­gram to its full poten­tial. Kick­start Min­sky Now!

  • john swabey

    Is there a rela­tion­ship between the stock of spec­u­la­tion, hoard­ing, the 1% and/or even sav­ings, (I would guess the name does not mat­ter much other than spec­u­la­tion on the time hori­zon to release) and the per­cent of each dol­lar in the real econ­omy that is ded­i­cated to debt ser­vice.

    The gen­er­al­iza­tion I am chas­ing is that only improv­ing the amount or qual­ity of hard assets has future ben­e­fit and that grow­ing finan­cial assets even­tu­ally pull us to a stand still in inter­est ser­vic­ing — at least until neg­a­tive inter­est rates or worse cor­rect the con­di­tions of the stock.

    I still think stocks and flows is a chicken or egg argu­ment. It can take time for flows to change stocks. Then again in finance the size of the pipe is illu­sive.

  • Hey Steve what hap­pened to this Kick­starter cam­paign? Don’t find it.

    On the sec­ond model, might I sug­gest that instead of “con­sump­tion,” you say “spend­ing”? Seman­tics, but darned impor­tant. The notion of “con­sump­tion” by banks, for instance, is prob­lem­atic in most people’s models/thinking.

    Related to the wide­spread con­fu­sion between “con­sump­tion spend­ing” and con­sump­tion.

    Quickly, think gross and net con­sump­tion and invest­ment, and where con­sump­tion of fixed assets (CFA) gets counted.

    Gross con­sump­tion would be con­sump­tion spend­ing + CFA

    Just as net invest­ment is gross invest­ment — CFA

    In this model, spend­ing is just spend­ing. Could be expanded to dif­fer­en­ti­ate between C and I (and to incor­po­rate pur­chases of finan­cial assets), but not nec­es­sary here. It’s all just spend­ing.

    I did sim­i­lar in my toy model here — all about mon­e­tary spend­ing; the real econ­omy is a black box that yields sur­plus through pro­duc­tion spurred by spend­ing:

  • Pingback: My Homepage()

  • Pingback: Prof Steve Keen launches Kickstarter campaign to develop modelling software to reform economics « Economics Info()