Book contents
- Frontmatter
- Contents
- Acknowledgements
- List of Contributors
- 1 Introduction
- 2 Veblen's Contexts: Valdres, Norway and Europe; Filiations of Economics; and Economics for an Age of Crises
- Part One Norwegian Origins and Personal Life
- Part Two American Education
- Part Three Veblen's Politics
- Part Four Veblen's Economics
- 12 Thorstein Veblen: The Father of Evolutionary and Institutional Economics
- 13 Veblen's Words Weighed
- 14 The Great Crash of 2007 Viewed through the Perspective of Veblen's Theory of Business Enterprise, Keynes's Monetary Theory of Production and Minsky's Financial Instability Hypothesis
- 15 Predation from Veblen until Now: Remarks to the Veblen Sesquicentennial Conference
- 16 Capitalising Expectations: Veblen on Consumption, Crises and the Utility of Waste
- 17 Thorstein Veblen: Still Misunderstood, but More Important Now than Ever
- Name Index
- Subject Index
14 - The Great Crash of 2007 Viewed through the Perspective of Veblen's Theory of Business Enterprise, Keynes's Monetary Theory of Production and Minsky's Financial Instability Hypothesis
from Part Four - Veblen's Economics
Published online by Cambridge University Press: 05 May 2013
- Frontmatter
- Contents
- Acknowledgements
- List of Contributors
- 1 Introduction
- 2 Veblen's Contexts: Valdres, Norway and Europe; Filiations of Economics; and Economics for an Age of Crises
- Part One Norwegian Origins and Personal Life
- Part Two American Education
- Part Three Veblen's Politics
- Part Four Veblen's Economics
- 12 Thorstein Veblen: The Father of Evolutionary and Institutional Economics
- 13 Veblen's Words Weighed
- 14 The Great Crash of 2007 Viewed through the Perspective of Veblen's Theory of Business Enterprise, Keynes's Monetary Theory of Production and Minsky's Financial Instability Hypothesis
- 15 Predation from Veblen until Now: Remarks to the Veblen Sesquicentennial Conference
- 16 Capitalising Expectations: Veblen on Consumption, Crises and the Utility of Waste
- 17 Thorstein Veblen: Still Misunderstood, but More Important Now than Ever
- Name Index
- Subject Index
Summary
It has long been recognised that Thorstein Veblen and John Maynard Keynes share a common approach to the nature of ‘business enterprise’ or ‘monetary production' in the modern capitalist economy. While the influence of Keynes on Hyman Minsky's ‘investment theory of the cycle and financial theory of investment’ is obvious and well known, this chapter demonstrates that Veblen's approach is in some ways closer to Minsky's. Further, Veblen's approach is in many important respects more informative, and still relevant for developing an understanding of modern business practice. On the one hand, this is not surprising as Keynes had let many of the monetary details ‘fall into the background'. However, it is surprising that most followers of Keynes have not mined Veblen's 1904 The Theory of Business Enterprise for arguments that nicely complement and extend Keynes's better known approach. This chapter concludes with an assessment of these theories in light of the global financial collapse.
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- Thorstein VeblenEconomics for an Age of Crises, pp. 303 - 316Publisher: Anthem PressPrint publication year: 2012
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